Health Savings Accounts are personal savings accounts that allow policyholders to pay for medical expenses with pre-tax dollars.
Madison, WI (PRWEB) September 29, 2011
As the health care landscape continues to change and more and more consumers begin to explore their individual health insurance options, the health savings account (HSA) is gaining in popularity. Today, WPS Health Insurance, Wisconsin’s leading not-for-profit health insurer and provider of affordable individual health insurance, family health insurance, and group health insurance, released a new entry in its “Health Insurance 101” series of educational articles to help consumers learn more about this unique health plan option.
“Health Savings Accounts are personal savings accounts that allow policyholders to pay for medical expenses with tax-free dollars,” said Tom Olson, Vice President of Sales and Marketing at WPS Health Insurance. “The funds in an HSA are completely tax-free, so using an HSA to pay for qualified medical expenses is a smart way to save money.”
To be eligible for an HSA, consumers must first have a special type of health insurance called an HSA-qualified high-deductible health plan (HDHP). The Internal Revenue Service (IRS) determines rules for HSA-qualification including minimum and maximum deductible amounts and out-of-pocket limits. They put out a publication each year detailing current rules and regulations at http://www.irs.gov/pub/irs-pdf/p969.pdf
HSA-qualified HDHP plans typically offer lower monthly premiums than traditional plans. With this type of plan, policyholders can take the money they save on premiums and invest it in their HSAs, where it is available to pay for qualified medical expenses, from deductibles and copays to expenses their plans don’t even cover, such as laser vision correction.
HSA-qualified HDHPs can be a good choice for people interested in trading higher out-of-pocket costs for lower premiums, people who want more control over their health care spending, those interested in the tax benefits of an HSA, and anyone interested in using a personal savings account to pay for qualified medical expenses.
“We hope health care consumers find our latest ‘Health Insurance 101’ article valuable in helping them to learn more about this increasingly popular health plan option, and in deciding whether an HSA-qualified, high-deductible plan is right for them,” said Olson.
The full article is available today for free at the WPS Health Insurance Web site.
WPS encourages health care consumers who have questions about health savings accounts, or any other health-insurance-related questions, to call 1-888-245-4197 and talk with a friendly WPS representative today.
About WPS Health Insurance
Founded in 1946, WPS Health Insurance is Wisconsin’s leading not-for-profit health insurer, offering affordable individual health insurance, family health insurance, high-deductible health plans, and short-term health insurance, as well as flexible and affordable group plans and cost-effective benefit plan administration for businesses. In addition, the WPS Medicare division administers Part A and B benefits for millions of seniors in multiple states, and the WPS TRICARE division serves millions more members of the U.S. military and their families. For more information about WPS Health Insurance, visit http://www.wpsic.com.