Is an HSA the Right Choice to Supplement Family Insurance Coverage?
Filed under: Health Insurance
It can be a challenge to find the right insurance coverage for cost-effective healthcare. You want to be sure that your family has access to quality health services, without breaking the bank on expensive premiums. If you spend a lot on medical costs, then you might consider the benefits of investing in a Health Savings Account, also known as an HSA.
Health Savings Account (HSA) Overview
Jonathan Nolan, JPN Insurance
An HSA is like a personal savings account. You add money to the account, but the funds can only be used to pay for expenses related to health care. These funds can be used for anything related to your health, including insurance deductibles, co-pays, medical treatments that aren’t covered by insurance, and more.
Why would you consider an HSA in addition to full insurance coverage? The benefit is in the tax savings options that are available for your family. The money that is deposited into an HSA account isn’t taxed. If the money isn’t used in a given year, then it carries forward so that it is available when you need it.
Is an HSA Right for Your Family?
HSAs are designed to be used with high-deductible insurance plans. So, you need to weigh your options and compare the insurance coverage that meets the needs of your family. Then, decide if an HSA is a good solution to use in addition to your insurance coverage.
For example, if you don’t visit the doctor often, then you might choose a high-deductible insurance plan and an HSA account. This method allows you to save your cash for future medical costs.
On the other hand, families that need frequent medical care might not benefit from a high-deductible insurance plan. In this situation, it is better to choose an insurance plan with a lower deductible.
Also, keep in mind that money in an HSA can’t be used for non-medical expenses. If you withdraw the money and don’t use it for medical costs, then you will need to pay taxes on that money.
Find the Right Insurance Coverage for Your Family
Whether you are looking for a low-deductible insurance plan or the combination of a high-deductible plan with an HSA, we are here to help. Talk to the experts here at JPN Insurance Services to learn more about insurance plans that you might consider: (951) 443-9925
