Since the Health Savings Accounts (HSA) started in early 2004, the number of people using HSAs has grown at a phenomenal rate and has tripled to 3 million in the last 12 months!Health Savings Account allows people with high-deductible health insurance plans – defined as having annual deductibles of at least $1,050 for individuals or $2,100 for families – to open a tax-deferred savings account, much like an IRA.
Funds can be deposited up to the amount of the policy deductible and deducted from taxable income -- instead of being lost forever to premiums.
HSA funds can be used for any qualified medical expenses such as doctor visits, over the counter drugs, laboratory fees, long-term care insurance, long-term medical care, Medicare premiums and deductibles, psychiatric care, therapy, vaccines,chiropractors, acupunture, eyeglasses and dental treatment
The HSA funds can be rolled over year after year, and can be withdrawn after age 59 1/2 and used for whatever purpose without penalty.
People are finding many advantages to getting Health Savings Accounts, including:
- HSA offers greater flexibility in spending -- HSA covers a wide range of medical expenses as outlined above
- Unreimbursed health care costs, including deductibles and co-pays, are paid with before-tax dollars.
- HSA holders can save of up to $1,800 in federal income taxes annually, plus state taxes in most states, and can opt to invest the HSA funds in growing range of choices and growth compounds tax-free.
- Unlike the Medical Savings Account (MSA) and the employer-sponsored flexible savings acount, Health Savings Accounts do not have a "use it or lose it" penalty each year
- Healthy individuals can accumulate savings in order to pay health-care expenses later in life or to supplement retirement savings. It allows families with infants or very young children can roll over HSA contributions so that as the children age, if medical needs decrease, there will be additional funds left over to use for expenses such as orthodontics.
Indeed, Health Savings Accounts provide a more affordable health insurance option.
The other good news is that Health Savings Accounts have become more accessible than ever! More and more insurance providers are offering HSA-compatible health insurance plans. And Large banks like Wells Fargo and US Bank are now offering HSAs, along with several smaller banks and credit unions across the nation.
To learn more about the uses and contributions to Health Savings Account, click here.
If you wish to get a FREE Health Savings Account eligible 
health insurance quotes, click here. You will be able to check, compare and find the best quotes within minutes. And when you're ready, you can easily apply online.
Source: Marketwatch
