INSURANCE OPTIONS

Are you frustrated by the double-digit increases in health insurance premiums?

WE HAVE AN ANSWER!

With the passage of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Medical Savings Accounts (MSA) were discontinued effective 12/31/03, and replaced with the new, tax-exempt Health Savings Account as of 01/01/04.

This may very well prove to be the most important piece of legislation in 2003. Martin Feldstein, in the Wall Street Journal, writes "these new tax and medical insurance rules have the potential to transform health-care finances, bringing costs under control and making health care reflect what patients and their doctors really want. It is remarkable that this legislation has received so little public attention."

Like it's precursor the MSA, the HSA is a two-component health plan consisting of a high deductible health plan (HDHP) and a tax-free claims expense reimbursement and tax-deferred savings plan. The HSA is the permanent expansion of the former MSA, with several very meaningful enhancements. Simply put, now everyone (not just the self-employed or small businesses) can take advantage of the savings inherent in this new form of medical IRA.

Reimbursements from the savings account, for those expenses eligible, are received 100% tax free. Contributions for 2008 are $2,900 for an eligible individual with self-only coverage to as high as $5,800 for family coverage and are deductible "above the line", that is, a taxpayer does not have to itemize deductions in order to take the contribution as a deduction.

Significant changes to the law, effective 2007, have made contributions more lucrative.  See the article below outlining the "Health opportunity Patient Empowerment Act of 2006" for details.

Catch-up contributions are also allowed for individual's age 55 or older. Contributions levels will be adjusted yearly and tied to the Consumer Price Index. Funds in an HSA (savings account) may be invested as the account holder sees fit, including CDs, money market funds, mutual funds, stocks, bonds, or other securities. They may not, however, be invested in life insurance contracts.

The broader federal definition of "eligible medical expenses" remains and therefore includes and allows for tax-free reimbursements on such often non-covered or substantially reduced items of traditional medical care such as dental, vision, chiropractic, mental health, long term care services and insurance premiums, etc. In addition, preventive care services, as well as coverage for accidents, disability, dental care, vision care, and long-term care are not subject to the deductible.

HDHPs and HSAs are available for Individuals and Business of all employee size throughout the state of Colorado.  

Call me and let's discuss your options! 

For additional information:

• Click Here For The NEW 2009 HSA TriFold Brochure
• The United States Department Of The Treasury HSA Site  
• HSA Road Rules
• 34 Basic Question HSA Document

We offer HSA-compatible high deductible health plans from Assurant Health, Anthem Blue Cross and Blue Shield, Golden Rule, Humana and Rocky Mountain Health Plans and more. For more information, email me at ken@hsa4health.com or call Toll Free: 877-399-1581 or in the Grand Junction Area: 970-242-9191.