Health care reform has been the topic of conversation for generations. Access to health care is an ever-increasing issue affecting millions. Health Savings Accounts are helping to solve the problem of access and affordability of healthcare. Health Savings Accounts insured an estimated 7.4 million Americans last year according to researchers at Information Strategies. Health Savings Accounts continue to rise in popularity and the number of those enrolling in Health Savings Accounts and High Deductible Health Plan continue to grow. So what are Health Savings Accounts?
In 2003 the Medicare bill introduced Health Savings Accounts into the world of consumer-based health insurance. Health Savings Accounts are a tax-free way to help people save for medical expenses including current medical expenses and future medical expenses. Policy holders can withdraw money from their Health Savings Account on a tax-free basis if used for qualified medical expenses. If there is money left in the account at year’s end the funds will be rolled over into the next year. This will continue year after year after year. Health Savings Accounts give you the opportunity to save up for catastrophic medical expenses.
Health Savings Accounts are available to virtually anyone. In order to qualify for a Health Savings Account you have to be enrolled in a High Deductible Insurance Plan. The other major stipulation is that you cannot be a Medicare recipient. Health Savings Accounts and High Deductible can offer huge savings while still providing ample coverage. Should a policy holder enroll in a Medicare plan after participating in a Health Savings Account program, the funds within that account would still be available to the individual.
One other key factor in Health Savings Accounts is that the funds used have to go toward qualified medical expenses. A basic list include braces, over the counter drugs, birth control pills, childbirth preparation classes, crutches, psychological help, lasik surgery, etc.
