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Hsa Insurance Question & Answers

2013 September 14
by Sarah Fields

Robert asks…

Should I get the Health Savings Account Insurance through my new company?

I recently got a new job and one of the choices is this HSA Insurance. I have psoriasis, a skin condition that I do light therapy for and these visits for the light therapy can range from 25-50 a year. With regular insurance, the co pay ranges from 25-40 for one of these visits but with the HSA it would be 10% of the cost which would be less than 10 dollars. However, the deductible is higher, but I do not understand how this works. Once I pay my deductible, for how long do I get therapy for a condition without having to pay it again…what do you think, is it worth it for me to go with the HSA?

Sarah Fields answers:

I am not quite tracking with your question. It is possible you are being offered some kind of package deal that includes a H.S.A. (Health Savings Account). And we know nothing of the rest of this package.

The company that I worked for offered traditional health insurance, but then decide to change. They still offered the traditional health insurance, but also offered a HIGH DEDUCTIBLE health insurance. And if we got the High Deductible Health Insurance, we also got a Heath Savings Account.

The nice thing about the high deductible insurance was that it was cheaper. I do not remember the exact amount, but it was maybe $200 cheaper.

But rather than pocket the savings, I had an automatic withdrawal from my paycheck set up so that $200 was deposited in my H.S.A. Each month.

The money I put into the H.S.A. Each month accumulated until I had a few thousand dollars in there. I could use that money to pay for any medical care, etc. And I do not lose that money at the end of the year. It stays with me. After my job ended, I did move the money to another H.S.A. Administrator.

There was a nice tax advantage because the H.S.A. Is pre-tax dollars.

Thomas asks…

Is sales tax on a medical expense also a medical expense for HSA, etc.?

If you have something (HSA, insurance, etc.) that can be used for something on which the state charges sales tax (such as over-the-counter medicine), can the reimbursement account, etc., be used for the total cost, including sales tax, or only for the base price (before sales tax)?

Sarah Fields answers:

Yes. And if you are not paying the bills out of an HSA (or other account), make sure you keep track of it for Federal Itemizing purposes. If you itemize, keep track of sales tax for a year or two to see if you spend more than what they give you in the generic tables.

Laura asks…

Can a retired 60 year old man get a HSA?

Or is the HSA only for people that are still working?

I have about $18,000 in HSA from when I did have HSA insurance. Now I have employer sponsored health insurance.

If I retire at age 60. I’m 54 now, can I get HSA and use the money I already have in the HSA account that I’m not using now?

Sarah Fields answers:

Yes, you can have an HSA account and you can use that money for qualified medical charges. The account can be either with a qualified HSA health insurance policy or not. When you retire, if you have a qualified policy you can continue to deposit money in that account until you turn 65.

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