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Health Savings Accounts: Advantages

The United States of America has some of the highest medical costs in the world. Those who cannot afford health insurance can face an uncertain future should a serious illness or injury happen. Those with health insurance face increased premiums every year. More and more employers are cutting benefits due to the costs involved. Health savings accounts were introduced to try to offset some of the pressure on both sides. They also are designed to give a greater degree of control and planning over ones future medical expenses.

Health savings accounts offer several advantages for the account holder. They generally translate into lower insurance premiums for the account holders. To qualify, you generally need a high deductible insurance policy. With a higher deductible your premiums go down. Your Health savings account can then be used to fund expenses that your insurance policy won’t cover.

Another advantage of the health savings account is that you own the funds. You do not have to go through a health insurance company to find out or ask if they will pay for certain things. You decide how and when to use it. You can also decide which investments can go into the account to make the funds grow further.

Finally, the account holder can use the Health Savings account funds for non medical expenses once they pass the age of 65. Those that do this before the age of 65 face a 10% penalty charge. The money can then be used for whatever purpose you want, either medical or non medical.

Health savings accounts were designed to provide benefits for all of us. With the account holders having greater control over their funds, it was believed that people would shop around for more economical health care. This would reduce the costs to the insurance companies and bring lower premiums for everyone.

With the rising costs of health care and health insurance, health savings accounts seem like a good idea. People can control the amount of money in their accounts as well as the investment. These funds are tax free until used and can even be used as an investment after the age of 65. A health savings account is a good way to battle the costs of health care today.

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