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[H188]Health Savings Account Insurance

by Wiley Long, Wil

"What is required of us now is a new era of responsibility" declared president Obama at his inauguration. Soon after he signed a bill to spend a massive $800 billion in tax-payer money (plus interest that accumulates) that the government currently does not have. Hopefully, that is not an example of what he was talking about.

It is imperative in the country that we all begin to believe in the importance of personal responsibility. People who have Health Savings Accounts are taking responsibility for some of their own medical expenses. They are taking the responsibility to put aside some money to cover possible medical expenses. They take responsibility for choosing medical services that offer the best price, convenience, and value. It may sound corny, but the whole nation really owes Health Savings Account owners a debt of gratitude for what you do to better society.

Take Personal Responsibility for Your Health

At the National Consumer Driven Healthcare Summit which focused on Health Savings Accounts, Elizabeth Bewley gave a fascinating talk titled "Consumers Need to Become CEOs of Their Own Health and Health Care". She explained how our modern healthcare system is set up to benefit interests other than you. For instance, she spoke of a condition called ICU Psychosis, which affects many patients after spending time in intensive care. This problem manifests as a form of delirium or psychotic episodes, and is caused by the typical conditions in ICU - bright lights, noise, sleep deprivation, confusion about night and day, etc.

The first step in being your own healthcare CEO using your Health Savings Account is to take care of your health. Simply staying out of the hospital could save your life. The Institute of Medicine reports that medical errors cause about 100,000 deaths annually, making this the third leading cause of death. Hospital-contracted infections kill another 100,000 a year. Adverse drug events kill an additional 125,000. Thus, approximately 17% of total deaths in the U.S. may be attributable to medical care.

Up to one half of prescribed drugs do not work for patients as intended, and physicians rarely explain possible adverse side effects or how long the patient should take the drug. Bottom line, the system is built for the needs of the providers, instead of being individual-centric. By using a Health Savings Account to take more control, consumers need to ask more questions; create a personal health record; and realize that they are in charge of their own health, not their doctors.

Healthy Eating

A new study was just published in the European Journal of Clinical Nutrition, titled Metabolic and physiologic improvements from consuming a Paleolithic, hunter-gatherer type diet. Humans evolved over millions of years as hunter-gatherers, and only very recently did humans begin eating grains, dairy, vegetable oil, sugar, and other modern foods. (10,000 years may seem like a lot of time, but it is nothing as far as evolution is concerned).

This was only the 4th human study to be done on the Paleolithic-type diet, and like the others it found dramatic results. Those who ate this way had lower blood pressure, better glucose tolerance, less insulin, greater insulin sensitivity, and better lipid profiles. People lose weight, their digestion works well, their joints stop hurting, they have greater mental energy, and their risk of cardiovascular disease and autoimmune disease plummet. Diet is the single most important factor in your health, and you really are what you eat.

If you are looking for ways to cut your expenses, and the current economy is affecting you, get a Health Savings Account to become CEO of your own health care. If you're in good health, you can always check to see if there is a less expensive HSA insurance plan that you can switch to. Always explore all your options and find the best HSA Plan that will work with your Health Savings Account.

Health insurance has seen some good and significant changes recently - especially in the area of health savings accounts (HSA's), and this means that there are more benefits to be passed on to you. In December of 2006, Congress passed some new changes that will affect many people - starting January 1st of 2007. Considering that HSA's were started as recently as 2003, this shows significant progress.

Health savings accounts are actually attachments made to a health insurance plan that has a high deductible (HDHP - High Deductible Health Plan). In order for a particular health plan to qualify as an HDHP, it must have a deductible amount between $1,100 up to $5,500 for singles in 2007, and between $2,200 up to $11,000 for families.

Other features of health savings accounts that enable them to attract those looking to be able to combine savings with health insurance are:

- Deposits are tax deductible

-Amounts used for medical purposes are tax-free

- Accumulates interest

- Money stays in account and builds from year to year

- Money remains under your control

Even with these great features, there are now some that make it even better. Here are some of them and how they can benefit you.

1. Deposit Maximum Deductible - Even If Your Plan Does Not Require It

In previous years the maximum amount that you could deposit into the account was the amount of your deductible on your health insurance policy. The changes now mean that even if your deductible is $2,000 as a single person, you can still deposit up to the maximum deductible of $2,850. You are no longer limited by the deductible and can put into your savings a higher amount to be able to earn a greater interest. There is an even greater amount that can be deposited if you are 55 or older. For 2007, you can deposit an additional $800, and in 2008, this extra amount is raised to $900.

2. Take Advantage of Full Year Deposits Even with Partial Year Enrollment

Even if you now enroll in September, you can still take advantage of a full year's deposit. You are not limited now by how much you can deposit because it is not placed on a monthly basis. Previously, you were allowed to deposit 1/12 of the total amount for each month that you were enrolled. This stipulation has been removed but you still must meet the qualification of a testing period, which means that you must still be enrolled at the end of the 12th month from the time you enroll.

3. Transfer Funds from an FSA or MSA to an HSA

If you already have a Health FSA (Flexible Savings Account), an MSA (Medical Savings Account), or even an HRA (Health Reimbursement Account), then you are allowed to make a transfer from the account to your HSA. You can only do this once, however, in your lifetime, from each type of account, but you cannot make a transfer out of an HSA to any other savings type of plan. The limit placed on this type of transfer is $2,000. The eligibility for this type of transfer further demands that you no longer be eligible for medical care under that plan. There is a time limit placed on when these transfers can be made, and that is January 1, 2012.

Besides being able to make the above transfers, you can also make non tax-deductible transfers from an IRA, too. The only limit is the amount of deductible that is found on your health insurance policy. Again, the once in a lifetime policy applies - with one exception. If you make the first transfer as a single person, you can also make another transfer if you become married within the same year. The total amount contributed cannot be greater than the deductible amount on the policy. Transfers can also be made from one HSA to another.

4. Employees with FSA's can make Contributions to an HSA In Spite Of Grace Period

Under the old way of doing things, if you currently were a member of an FSA plan, then you could not either start an HSA or contribute to one until the first day of the first month after the grace period of the FSA expires. Now, you can make deposits into the account in spite of having an FSA, but you must deposit all of the balance into the HSA. Another stipulation is that you need to have less money in your FSA account than what you had as of September 21, 2006 in order to qualify. If this is not the case, then you still must wait until the end of the grace period.

Each of these new changes in HSA's means greater flexibility for you and for your employer. These policies are now more consumer friendly than ever before. Perhaps it is time for you to start looking into getting your own and combine your needs of lower cost healthcare and a good way to save for retirement, too.

Article Source : Chief Executive Officer CEO

About Author

Both Wiley Long & Clelland Green are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Wiley Long has sinced written about articles on various topics from Politics, Finances and Health. By Wiley Long - President, HSA for America (). Wiley Long's top article generates over 9900 views. to your Favourites.

Clelland Green has sinced written about articles on various topics from Recent Graduate, Chief Executive Officer and Insurance. . Clelland Green's top article generates over 2900 views. to your Favourites.