A Health Savings Account is a modern method for health insurance that was made available on January 1st, 2004. The HSA is divided into two parts, a qualified plan for high deductable health insurance and secondly an individual tax-exempt trust.
Money contributed to the HSA account from individuals’ gross income can be deducted as tax free medical money. HSA premiums are lower than other fully insured plans with co-pays. In theory, the funding of the health savings account comes from the dollars not being spent on a plan which “pays” for the privilege of co-pays and lower deductibles.
Individuals can reap the following benefits:
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