Health Savings Accounts- A Revolution in our midst

In the next 10 years, you will pay $70,930 in medical premiums. If you are a small employer with 20 employees, this number expands to $1.41 million. And the number does not include carrier premium increases each year. Do you think a solution is needed?

Many do believe a solution is needed. And a response is the Health Savings Account -based Health program (HSA). According to a Wall Street Journal Article dated Jan 19, 2004 entitled Health and Taxes, Martin Feldstein (Economist) noted that a typical Blue Cross of California family policy cost $8,460, with a $500 deductible per member. But a similar HSA Policy costs just $3,936, with a $2.500 deductible - so the difference in savings ($4,524) actually exceeds the maximum additional out-of-pocket expense that the family would face if they reached the maximum deductible. But, what happens if the family does not incur medical expenses. Who keeps the savings (H S A Balance)...the answer: the individual. Under a non-H S A arrangement, the carrier keeps the savings.

What is a HSA?

Every HSA has two components:

1. A personal savings account

2. A catastrophic health insurance policy with a high deductible

How High is a High Deductible?

For 2006, catastrophic coverage with a high deductible is defined by law as at least $1,050 for individuals and $2,100 for families.

How Much Can Be Deposited in a Tax-Free HSA Account?

The purchaser can deposit up to $2,850 for individuals or $5,650 for families per year.

Remember, contributions to the HSA are with TAX-FREE Dollars. Anyone, mom-and-pop operations, large corporations and individuals can open a health savings account. The key is to secure a qualified high-deductible medical plan. These medical plans can provide 100% coverage after the deductible. Or, it can provide 80% coverage, after the deductible, like current medical plans of today. Find a high deductible plan that offers enough savings to allow you to build the balance in your HSA.

You can find one now. Follow these steps:

1. Go to the HEALTH Tab on this website

2. CLICK on one of the ICONS of the Carriers listed.

3. Enter your information (age, sex, coverage type, zip code, etc).

4. Select ONE-DEDUCTIBLE Medical Plan.

5. Select DEDUCTIBLE

6. Rates will appear - you can apply by via the website too!

Call us at 251.445.2485 to review the program and assist with the application. We are located in Point Clear, Alabama and can make arrangements to meet or discuss the program over the telephone.

Innovative Benefits Consulting is a strategic partner of MAXBenefits LLC. Listen to a recent interview they did by clicking on the LINK below: