What is a Health Savings Account?
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.
You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.
Good Neighbor Insurance does have Arizona health plans that has Health Saving Account plans through Health Net, Lifewise, and Blue Cross Blue Shield and other insurance plans. Please go to https://www.gninsurance.com for more information such as benefit summaries, applications to download, or to apply online and also to get side-by-side comparisons of these plans.
SECTION 4. INFLATION ADJUSTED ITEMS FOR HSAs FOR 2009
Did you know?
Annual contribution limits for Health Savings Accounts (HSAs) are adjusted each year for inflation. Below are the contribution limits and health plan deductible requirements that will be in effect for 2009.
Annual HSA Contribution Limits
- For calendar year 2009, the contribution
limit for an individual with self-only coverage under a high deductible health plan is $3,000.
- For calendar year 2009, the contribution limit for an individual with family coverage under a high deductible health plan is $5,950.
- Individuals who are age 55 and older by year end can make an additional “catchup” contribution of up to $1,000 in 2009.
For more information go to http://www.treas.gov/offices/public-affairs/hsa/