| Since Health Savings Accounts (HSAs) were
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| | $2,100 for families, and the annual
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| created by the Medicare bill signed into
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| | out-of-pocket expenses cannot exceed
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| law in 2003 they are being considered by
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| | $5,250 for an individual or $10,500 for a
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| more and more Texans as a health
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| | family. This includes deductibles and
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| insurance option. Here is a quick
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| | co-payments, but not premiums. So you can
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| overview on a complicated subject.
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| | buy an individual high-deductible
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| What's a Health Savings Account (HSA)?
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| | healthcare policy, or purchase one
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| They have two parts. The first part is a
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| | through your employer.
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| qualified high-deductible health
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| | To qualify as an HSA-eligible policy in
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| insurance policy that covers large
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| | 2007, your health insurance plan must
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| medical bills. The second part of the
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| | have a deductible of at least $1,100 for
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| Health Savings Account is an investment
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| | individual coverage or $2,200 for
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| account or retirement account from which
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| | families. You can then make a
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| you can withdraw money tax-free for
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| | contribution to your HSA up to the amount
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| medical care. If you don't withdraw the
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| | of the deductible each year. If you're
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| money for medical expenses, the money
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| | buying an individual plan, be sure to ask
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| accumulates with tax-free interest until
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| | your health insurance company if it is an
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| the age of 65, when you can withdraw it
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| | "HSA qualified" high deductible plan. Not
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| for any purpose and pay normal income
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| | all high deductible plans are eligible,
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| taxes.
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| | or "qualified".
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| Who's eligible for an HSA?
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| | Where can I get an HSA-Eligible Plan?
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| Anyone under age 65 who buys a qualified
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| | First you need a qualified high
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| high-deductible health insurance policy
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| | deductible plan. Finding a plan depends
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| can open an HSA. If you're covered by
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| | on whether you get it through your
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| another health insurance policy that
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| | employer or purchase individual
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| isn't a qualified high-deductible plan
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| | insurance.
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| (either as an individual or a dependent),
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| | Employer Insurance -If you get health
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| you're not eligible for an HSA. If,
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| | insurance through your employer, ask
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| however, you are eligible, you can still
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| | about the HSA-eligible option during the
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| carry other accident, disability, dental,
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| | group policy's open-enrollment period,
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| vision and long-term care insurance
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| | which is generally in the fall. Or talk
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| policies.
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| | to your benefits manager to see if HSAs
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| How much can I contribute annually to an
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| | will be on your health insurance menu.
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| HSA?
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| | Choosing an HSA could significantly
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| For 2007, you can contribute up to $2,850
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| | reduce your share of premiums, and some
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| for individual coverage or $5,650 for
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| | employers may opt to fund all or part of
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| families. If you're 55 and older, you can
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| | the HSA, much like a 401(k)-style match.
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| make a catch-up contribution of $800.
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| | Your individual insurance company or
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| Legislation approved at the end of last
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| | employer will then almost certainly
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| year allows you to contribute up to these
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| | direct you to their preferred vendor for
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| limits, even if your insurance deductible
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| | the administration of your HSA account.
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| is less.
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| | Using the preferred vendor is usually to
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| Can any high-deductible health insurance
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| | your advantage as data is more easily
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| policy qualify for an HSA?
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| | transferred between the insurance company
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| Any high-deductible health insurance
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| | and the HSA administrator and you get a
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| policy can qualify, as long as it meets
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| | break on the administration fees. You
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| the IRS requirements. The deductible must
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| | are, however, free to chose another HSA
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| be at least $1,050 for individuals or
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| | administrator if you prefer.
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