High Deductible Health Plan

High Deductible Health Plan

The Health Savings Account is the tax favoring savings account that is introduced to help you pay the medical expenses free of tax. It is strategically structured to work with the High Deductible Health Plan.

Health savings account provides you the opportunity of depositing tax-deductible funds into the account that can be utilized to cover the medical expenses, the Health Savings Accounts helps you to decide about your own health. This is an insurance scheme that is responsive directly to the individual potential consumers instead of the third-party payers. This is indeed the idea of consumer driven health care.

The following are the ways you can be benefited by the Health Savings Account:

Ø It is indeed a comprehensive medical coverage. It is a one calendar year deductible every family.

Ø The amount of money contributed to the Health Savings Account during the tax year is deductible from the gross income.

Ø You can cater to your medical or pharmacy expenses with your debit card.

Ø The contributions that are done through the payroll are made tax free by the employees.

Ø It is for the purpose of tax that the contributions made by the employer are not added in the gross income.

Ø If the Health Savings Account bears interest, the earnings are tax-deferred. There is no need to pay federal taxes in case the amount is being spent on the proper medical expenses.

Ø The amount deposited in the Health Savings Account will help you to pay the medical expenses both covered and not covered by the health plan.

Ø The amount that has been contributed by you is tax-deductible and is transferred during retirement or change of jobs. In other word, Heath Savings Account is portable.

Insurance is always a safer way to protect yourself. Check out the different health insurance plans from Golden Rule.