7 Things You Should Know About Health Savings Account Plans
It is always wise to have a savings account as part of your financial plan when you are starting out. However, it is also important to know what types of plans you can take advantage of and how much money is really available if you make the switch. This article will go over the basics for beginning savers.
1) Health Savings Accounts are tax-free accounts that allow individuals to save money for medical expenses that occur in the future. This money can be used on whatever treatments or procedures may be needed, whether it be at home or in a hospital setting. They are created specifically with medical expenses in mind, so they do not combine with an employer's HSA, meaning no income deduction while using these accounts exclusively. These accounts help lower the taxpayer's tax burden by providing pre-tax money that is used for medical expenses.
2) These accounts have a limit on how much money can be saved in them. For the year 2012, there is an annual limit of $3,100. If you are older than 55 before January 1, 2013, your account is unlimited, meaning you can save as much as you want each year and still get the same deductions. The limit resets annually on January 1st of each year.
3) You may not use these funds without using your own money first. You cannot deposit a certain amount of money into your account and then withdraw funds later from an HSA, even if you have medical expenses. Your account is set up as your personal savings account so that you can travel without having to worry about the rising cost of medical services while you are on vacation.
4) You must have a high-deductible health plan in order to be eligible for an HSA. This is usually set at $1,200 for single coverage and $2,250 for family coverage. These deductibles are the minimum requirements and cannot be altered by the account holder or insurance provider.
5) Your employer is also not allowed to chip in or contribute to your HSA without receiving a tax deduction. There are no ways for an employer to get around these restrictions, so you will have to use your own money if you want this account.
6) The individual who owns the account must be the one who makes the deposits into the account each year. If someone else contributes deposits into your account, it will not be accepted by an insurance provider and it will not adhere to tax laws.
7) Once you reach age 65, you may change your HSA over to a Medicare supplemental insurance plan if you choose. This is a much more economical option than paying the full price for Medicare.
Another benefit of an HSA is that you can withdraw money from it as long as you plan on using it for medical expenses. If you are set on purchasing insurance with your HSA funds, there are several options to choose from. This article can help future savers find the best way to save money with their HSA plan.
About the Author: Mieko Fennell works for an Internet marketing company near Orlando, FL and comes from New Jersey. She has a lot of experience with online shopping and selling.
Sources:
1) https://www.irs.gov/pub/irs-pdf/f8880.pdf
2) http://www.irs.gov/uac/Newsroom/IRS-Releases-2013-Deductible-Health-Plan-and-High-Deductible-Health-Plan--HDHP--Requirements-(Change%3B+03212012)-FAQs
Attached to the backspine of this book is a small booklet titled "The Human Body. The Human Body is filled with true facts about our amazing bodies. The first chapter of the booklet explains how your body is an amazing "chemical factory" that produces things like enzymes, hormones, etc., to make your body work. You can then turn the page and read about the organs of your body, what they do and how they function.
The Human Body also connects with Mr. Michael's book titled "Chemistry: The Science of Matter". For example, one of the topics in Chemistry is "How Your Body Works". In this chapter Mr. Michael shows the organs and the functions of each of them.
There's a few parts where the information in Mr. Michael's book is very similar to the information in The Human Body. One example is that Mr. Michael labels "The Liver" as the pound-stone of your body. The liver works as a filtering system for your blood-stream, it helps to remove toxins from your body, helps you from getting sick and also destroys harmful by-products that are produced as a part of the chemical activities in your body. He calls these by-products (Toxins) "toxic waste.
The Human Body booklet discusses the "Reese-Hausser" model of how your body works. It shows how food, air and water are nutrients that your body needs to function properly. The first part of this model looks at what happens when you eat. Food is digested (combined) with hydrochloric acid and enzymes to change it into a gelatinous substance called chyme. Chyme is carried by the small intestine into your large intestine where it is now known as semi-liquid waste. Just like Mr. Michael's book, this booklet also shows the parts of your body that are most vulnerable to being attacked by toxins.
Next, The Human Body goes into a detailed discussion on what happens inside the cells of our bodies. This is where all of the chemical activity takes place. Most of this chemical activity is very similar to what was described in "Chemistry" in chapter 6: Chemical Reactions and Changes: How Your Body Works. However, there is one difference - in Mr. Michael's book he talks about how water helps to dissolve chemicals so they can become part of the chemical reactions that happen in our bodies and in our cells as well as assists other chemicals to move around easier within cells or fluids (liquid). In Mr.
Conclusion
Michael's book he does not talk about how water is needed in chemical reactions. This same topic has been discussed in The Human Body.
Conclusion: Based on the above content I would recommend that for students who are studying how our bodies work this booklet would be a nice addition to your bookshelf. It describes basic biological concepts (e.g., the divisions of cells) and human organ systems (e.g., respiration) and also explains how chemicals react inside our bodies to keep us healthy and protected from injury and toxins in both our environment as well as inside our food supply.