You are required to be insured by a High Deductible Health Plan (HDHP) in order to make deposits into an HSA. High Deductible Health Plans premiums are lower than copay plans and the benefits are usually the same.

Your responsible for your HSA. You decide how much to deposit and how to spend the money in the account.

What Is a “High Deductible Health Plan” (HDHP)?
These are health insurance policies that meet the IRS minimum requirements to open an HSA. For 2008 the deductible must be at least $1,100 for a single person contract, and $2,200 for a multiple person contract. The IRS dose not allow any first dollar coverage for these plans except for wellness (well check ups, PAP, Mammograms, PSA test, Immunizations, etc.) HDHP are considered " low utilization" policies which help keep premiums lower. Think about it this way, if you had a health insurance policy with a $5 doctor visit copay, and your brother had a $2,000 deductible policy with no copays at the doctors office until his deductible was met, which one of you would be more likely to go to the doctors office with a runny nose. You. That is why the premiums on the HDHP are lower.

Where do I open my HSA?
Usually the insurance company that you bought the HDHP can help you establish an HSA, if not your local bank may be able to help.

How much does an HSA cost?
Usually a small fee is charged by the financial institution where you maintain the account.

We are insurance agents not a CPAs. Every effort has been made to make sure that information in this website is accurate in regards to Health Savings Accounts and Tax Savings.  Please consult with your tax professional, the IRS, and your State revenue department.

Allen Insurance Agency is not employed by, connected with or endorsed by the State Department of Insurance, United States Government or the Federal Medicare program