Learn About HSAs
Information About Health Savings Accounts
Health insurance can be so expensive, which is why people should look for the most cost-effective option that will offer them the best care. A plan that may fit the bill and has grown in popularity is a plan with a Health Savings Account. These are high-deductible plans with a tax-preferred savings account that has money set aside by the policyholder to pay for medical expenses. Employers can also contribute money to the policyholder’s account.
If a consumer participates in HSAs, they will receive tax benefits. Additionally, the money in the account will belong to the policyholder and any extra money will roll into the account for next year. Upon the policyholder turning 65, they can use the funds without tax penalties for general retirement expenses. But if the policyholder chooses to do so, they are subject to income tax. For employers, these plans have lower premiums than other coverage, which will help employers manage costs of employee benefits. Even though HSAs allow consumers control over medical spending, it is not a great choice for those who are low income and/or use health care frequently. These plans require the policyholder to pay the full amount of each medical expense incurred until they meet the deductible. So with a high deductible plan, you will be paying a lot of money before your insurance kicks in. With Nayya, you can use our Cost-Estimator feature to determine how much you’ll have to pay before you even visit.
Additionally, since the policyholder would have to pay for their medical care by themselves, they may avoid going to the doctor’s office and discourage these people from seeking medical care. But, HSA’s have become more popular because consumers appreciate the amount of freedom they have when it comes to their medical needs. Nayya will help you determine which plan is best for you. Visit us at Nayya.com to sign up for a demo.