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