Affordable Health Insurance

With only minimal impact on Health Savings Accounts, health care reform has not dampened enthusiasm for these tax-advantaged plans. “Health plans with Health Savings Accounts offer protection and a tax-free way to invest – all at a cost that usually is less than what purchasers would pay for a lower deductible plan,” according to Scott Krienke, senior vice president of Assurant Health, one of the first companies to offer Health Savings Accounts.

Just two changes will effect Health Savings Accounts in 2011. Non-prescription over-the-counter medications, such as aspirin, will no longer be eligible for payment or reimbursement from a Health Savings Account (HSA).

If you do use your HSA funds for anything other than qualified expenses, the tax penalty on such withdrawals increases from 10 percent to 20 percent in 2011.

Otherwise, these tax-favored savings accounts for paying medical expenses will remain basically the same. To see how much you could save by switching from a low-deductible plan to a high-deductible health insurance plan combined with an HSA, visit HSA for American. More than eight million Americans are already enrolled in HSA Plans that helps both individuals and families keep their health care costs down.

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