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"Finding Solutions
Beyond the Obvious"
1- 800-854-4099
724-458-7255
Fax: 724-458-7261
service@davevic.com
902 South Center Street
P.O. Box 976
Grove City PA 16127
Content copyright 2008
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HSA stands for health savings account, an alternative to more traditional health insurance. The main difference offered by HSAs lies in the way consumers pay for
their health care. Through an HSA, consumers are able to pay for current medical expenses while saving tax-free money for qualified future medical costs.
In order to take advantage of the benefits of an HSA, one has to be covered by a HDHP - high deductible health plan. Typically, such plans are far less expensive
than other health care plans, allowing the saved money to be put into the HSA instead. The main advantage of this is that any money placed into the HSA is entirely
controlled by the consumer, with no need for a third party or health insurance provider to provide permission.
A high deductible health plan is generally inexpensive because it does not pay for the initial several thousands of dollars of expenses (each plan has a different
threshold). Qualifying for an HSA in 2006 requires that this deductible be at least 1,050 dollars for individuals and 2,100 for families. Additionally, out-of-pocket
expenses cannot be more than 5,250 dollars for individuals and 10,500 dollars for families per year.
As opposed to most health plans in which consumers have to pay a set amount each month, an HSA doesn't cost anything. The money you put into the plan is the money
you will be drawing from to cover your medical expenses. The only thing that needs to be purchased is the HDHP - but that is designed to cover any excessive medical
costs that may incur which are beyond the funds available in the HSA.
Employer Frequently Asked Questions
HSA Administration Pricing Schedule
For more information on HSAs go to the
Principal Financial Group website.
If you are interested in more information on the above plans, please contact us at:
Flex Contact
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