New health savings accounts (HSA's) represent a viable option for those searching for low cost health insurance. A health savings account is a special tax-sheltered savings account for medical expenses and is similar to an IRA in concept. Instead of purchasing high-priced health insurance with low co-pays, you buy low cost health insurance (with a high deductible) for the "big bills" and deposit the difference in the HSA to cover the "small bills." Money deposited into health savings accounts is 100% tax deductible and can be easily accessed by check or debit card to pay medical bills tax-free including expenses not covered by insurance like dental and vision. Monies not used for medical expenses remain the property of the individual account holder, not the insurance company. The benefits of health savings accounts are numerous and include the following:
- Lower monthly health insurance premiums
- More stability in premiums
- Immediate tax savings
- Long-term growth potential
- Tax-free withdrawals to pay medical expenses
- Tax-free withdrawals to pay for long-term care insurance or COBRA premiums
- Freedom to choose your own medical providers
- More control over your own healthcare decisions
If you are looking for low cost health insurance and have a desire not to pay high health insurance premiums while reducing federal income taxes, you should definitely look into health savings accounts. All major carriers including Blue Cross, Blue Shield, Health Net, Nationwide, and United/PacifiCare offer excellent HSA compatible plans. Health savings accounts are the wave of the future! You owe it to yourself to check them out!
John F. Pack
Low Cost Health Insurance Programs.com
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