Ohio health plans-What are the benefits of a Health Savings Account

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Health Savings Account is the newest trend in health insurance, especially if you are a small business owner or young family! An HSA is also sometimes referred to as a Consumer Driven Health Plans.

CDHP consumers are:

25% more likely to engage in health behaviors

20% more likely to follow treatment prescribed for chronic conditions

30% more likely to get an annual check-up

50% more likely to ask about cost

So often today consumers are passive; their individuals that fall into the system.  Typically these consumers make two common mistakes: they typically don’t question the recommendations of their primary care physician and they insulate themselves from the real costs of health care.  However, this is not only the consumer’s fault.  The health insurance industry has not helped to overcome this temptation to just pay a copay and not ask any questions.  Consumers need to be informed! In 2004 the government introduced new legislation creating HSAs to help individuals save for qualified medical and retiree health expenses on a tax-free basis.

What does this all mean? Well, an HSA is similar to the old MSAs, but much more flexible! They combine the pre-tax treatment of a health flex spending account, the portability and roll-over characteristics of a 401(k) plan, and the tax-free distribution of a Roth IRA.  Basically, to put it in plain English you would set up a savings account at a bank of your choice.  You can put as little or as much money into that account as you like (up to the IRA yearly limit) and it is completely TAX-DEDUCTIBLE! This money can be used for all of your office visit fees, to meet your deductible, for eyeglasses, contacts, dental, OTC medications, so many options! AND, whatever you don’t use rolls over to the next year.  These will not only help you to save for health expenses such as surgery, but also, it will help more families “get the health care they need at a price they can afford.”

Some health insurance companies, such as Anthem BCBS will also cover your preventive care at 100% if you enroll in an HSA.  This includes well-child visits, immunizations, pap smears, mammograms, and colonoscopies.  Also, most HSAs have 100% co-insurance, so that means that once your deductible is met the health insurance company covers all remaining expenses in that year at 100%.

If you have more questions regarding a Health Savings Account please check out our website for more information.