Understanding Health Savings Plans

There are some health insurance plans that will include a Health Savings Account (HAS). These accounts are often used by Mapleton, UT residents who have an insurance plan with a high deductible to cover health care costs. If your health insurance plan has a HAS and you are unfamiliar with it, Maple Mountain Insurance Services would like to share some basic information with you.

How Do HSAs Work?

HSAs are often offered by employers as a supplement to their medical insurance plans. If an employee does not have a HSA, but has a high deductible plan, they can open an individual account. Owning a HSA means that you must decide the amount of tax-exempt funds you’d like to send to your HAS to cover medical expenses. Just keep in mind that there are maximums mandated by the government. This amount changes from one year to the next and whether you are insuring an individual or family. Our team can help you determine how much you should send to your HSA.

How Can HSAs Be Used? What Are Their Benefits?

A health savings plan covers healthcare-related costs that your regular health insurance plan does not cover, such as birth control, medical supplies, prescriptions, eye care, and dental care. In addition, it can provide funding for deductibles, copays, and coinsurance. As a general rule, your insurance premiums cannot be paid by your HSA.

One of the great things about HSAs is that the accumulated money in the account will roll over to the next year instead of expiring at the end of the year. These plans are great for mutual fund investment income. You never have to pay taxes if you withdraw money, and they aren’t part of your taxable income. They are often used in retirement savings because the funds are eligible for non-healthcare expenses once you reach the age of 65.

If you would like to learn more about health savings plans in Mapleton, UT, schedule an appointment with a member of our team at Maple Mountain Insurance Services.