The percentage of people with employment-based health insurance dropped from 70 percent in 1987 to 61 percent in 2004. This is the lowest level of employment-based insurance coverage in more than a decade.
Health
Savings Accounts (HSAs)
Health Savings Accounts (HSAs) gives individuals
control over all healthcare decisions and are an excellent
way to fund medical expenses not usually covered under
traditional insurance policies, such as alternative
medicines, glasses and vision care, dental expenses,
and cosmetic procedures. HSAs offer a very non-traditional
way for individuals to handle their medical needs and
seem quite feasible and cost effective. HSAs are basically
separate tax-deductible savings accounts where money
may be deposited and withdrawn freely for medical expenses.
The accounts can grow over time and can even be considered
similar to the benefits of having an IRA.
Setting up an HSA does not have to be
difficult. Individuals are required to obtain a HSA-qualified
high deductible insurance plan, often considered plans
kept for catastrophic situations only. Be cautious to
obtain a plan that is qualified under HSA guidelines
under Congress or it will not be acceptable. After setting
up an appropriate plan, individuals may establish their
HSA account through a variety of financial institutions,
such as through banks, credit unions, and insurance
companies. Some institutions may charge high annual
fees so take the time to research which institution
will be most cost effective. Finally, individuals can
fund their account. There is an annual maximum, so be
sure not to deposit over the limit.
HSAs are still a relatively new concept.
There are some disadvantages. Married couples must purchase
their own individual HSA; similarly separate accounts
cannot be established for dependent children. If you
do not have health insurance, are on Medicare, or have
received benefits for the Veterans Administration, you
are not eligible for an HSA. Benefits include the fact
that HSA accounts work as IRAs and what money is not
used is still yours to keep. HSA accounts can be effective
the day your high-deductible health plan is. Several
employers have HSA plans available and will even contribute
a percentage for their employees. Finally, HSAs give
account holders ultimate freedom in how to spend their
medical funds. HSAs have money readily available and
after a few years of good health and not many medical
expenses, a cushion of comfort has formed. Knowledge
that you are able to handle a medical emergency financially
is a great relief.
Family-Health-Insurance reviews insurance services to provide information on products and options, but is not an insurer or a licensed agency. Coverage and policies described on this site may not be available in all states.
