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Autumn always represents a time of change in Indiana. Leaves change colors, temperatures cool down, and the humidity finally drops to a tolerable level. For many companies, autumn also brings changes in health insurance. Open enrollment opportunities provide employees the chance to explore new health care options to maximize their benefits and protect against hardship. In addition, changing health care laws have brought the topic of health insurance to the forefront of many consumers’ minds.
One health insurance option that has steadily gained popularity over the years is the Health Savings Account (HSA). In fact, research conducted by wealth and investment management company Devenir showed that HSA numbers across the country reached 9.1 million accounts in July of 2013. Paired with a High Deductible Health Plan (HDHP), the HSA presents a more affordable option for employers and an excellent way for employees to save money for healthcare expenses.
Thinking about opening an HSA? Here are a few tips and benefits:
High Deductible Health Plans and Health Savings Accounts are great options for many consumers, but the choice of health insurance should not be made alone. Excellent resources include your employer’s Human Resources department, an insurance representative, or a professional tax advisor.
This blog was brought to you by Jared Matchette, Deposit Product Analyst at MutualBank.
Have you ever thought about how much your prescription or doctor visits cost your employer? Many people who have a traditional insurance plan know they pay a $20 or $30 co-pay then they go about their day. But have you ever looked at the amount your company pays?
Insurance costs have skyrocketed over the past decade and companies have tried to find a way to still offer benefits to their employees. The solution has been to offer a high deductible insurance plan. These types of programs are often accompanied by something called a Health Savings Account (HSA). Simply put, a HSA is a checking account where money can be deposited and used for medical expenses. (You might have heard of a Flexible Spending Account, FSA, which is similar to a HSA, but different. FSAs require you to use your money set aside before the year ends. HSAs allow you to roll money over year after year. There are other differences as well. Learn more about HSAs through the Treasury’s website.)
So, are HSAs a good idea? Yes! HSAs make us better consumers of our health care. We look closer at a bill or prescription if we know it will come out of our pocket. We take the time to make sure if a generic medicine is just as good as a name brand, or if we truly need to go to the doctor for our sniffles.
The beauty of a health savings account is that the money grows tax free as long as we use it for qualified medical expenses. So not only are we being more proactive with and aware of our healthcare, we are being smart about our money as well!
Together, a health savings account and a smart consumer make for very healthy living!
If you have questions about your HSA or want to learn more, chat with us! Your local MutualBanker is here to help you live a better life!