HSA for America Recommends HSAs and HRAs to Buffer Increased Costs under Obamacare

Share Article

Last week’s healthcare reform ruling raises premiums for those who buy their own health insurance. Online health insurance broker HSA for America has three insights from analyzing health plans to help people minimize expenses and maximize savings.

Last week’s healthcare reform ruling will result in increasing premiums for most Americans who directly purchase individual or family insurance plans. HSA for America offers three recommendations to help Americans reduce their premiums and take maximum advantage of all related tax deductions.

Three Strategies to Reduce Health Insurance Costs Following the Supreme Court Ruling on Obamacare:

In 2014, insurance companies will be required to accept anyone who applies, regardless of pre-existing conditions. This, along with other aspects of the Patient Protection and Affordable Care Act, also known as Obamacare, are expected to cause major premium increases over the next 18 months. Anyone who purchases their own coverage directly should take steps now to minimize their out-of-pocket expenses.

The first recommendation is to obtain a lower-premium, high-deductible plan to cover unexpected catastrophic expenses, and minimize premiums. Wiley Long, president of HSA for America, adds, “With our recent bout of double-digit premium rate hikes, it may surprise you that HSA plans have had some of the lowest rate increases even though they have some of the lowest premiums. And, remember that all plans are now required to cover preventive care with no copay or deductible, regardless of the size of the deductible.”

The second recommendation is to maximize tax deductions by setting up a health savings account (HSA). An HSA offers significant tax advantages. People with HSA-qualified health insurance are permitted to put pre-tax money into a special savings account, which can be used to pay for medical expenses. HSA earnings are never taxed unless the money is spent on something other than qualified healthcare. In the absence of medical expenses, HSA owners may deposit up to the full IRS-allowed annual contribution and let it grow with tax-free earnings. This year’s contribution may be up to $3,100 for individuals or $6,250 for families, and those who are at least 55 years old may deposit an additional $1,000.

To further reduce taxes, the third recommendation is to consider setting up a health reimbursement arrangement. This allows a small business owner to reimburse for insurance and out-of-pocket medical expenses as a tax-free fringe benefit, further reducing taxes and overall costs.

Long concludes, “The real point of health insurance is to cover unexpected major expenses. Pay for the small bills from your HSA, and take maximum advantage of current tax law, and you should be able to cut your costs in half."

HSA for America became a top producer by educating the public about points like these to help them find affordable ways to cover healthcare. Reform issues will continue to affect coverage options, so the company dedicates significant online resources to advising how to minimize medical and health insurance costs at http://www.health--savings--accounts.com. Self-employed individuals can also learn more about Health Reimbursement Arrangements at http://www.health--savings--accounts.com/HRA.htm.

About HSA for America:

As the nation's leading independent HSA expert, HSA for America has earned a reputation for providing superior educational resources for individuals, families and small businesses. With their comprehensive website, consumers can evaluate health insurance plans that allow them to establish an HSA.

Guidelines for selecting an HSA administrator based on fees and investment options are readily available at http://www.health--savings--accounts.com/admins.htm. Topics to help people maximize their savings on premiums and taxes can be found at http://www.health--savings--accounts.com/how-to-guide.htm.

People may access HSA for America’s instant quote engine and online applications or request individualized assistance. Confidential consultations regarding HSA Plans and Health Reimbursement Arrangements may be arranged by calling 1-866-749-2039 from 9 AM through 11 PM Eastern.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Wiley Long
Follow us on