Who Benefits from HSAs?
Relatively healthy people with moderate to low medical expenses (the vast majority of consumers) will get the greatest long-term benefits from purchasing a compliant High-Deductible Health Plan (HDHP) and establishing an HSA. Maximum HSA benefits wil be realized over the course of years, as pre-tax savings accumulate and gain return on investment Reduction of Income Taxes Pre-tax funds in the HSA can be withdrawn to pay qualified medical expenses not reimbursed by the High-Deductible Health Plan. Qualified disbursements from an HSA generate no income tax effect. Funds remaining in the HSA earn interest and “rollover” from year to year– like an IRA. Medical Insurance at a Reduced Cost High-Deductible Health Plans (HDHPs) are provided at a reduced cost and will be subject to lower rate increases than have applied to traditional health insurance. HSAs Provide Freedom of Choice HSA financial incentives motivate consumers to assume more individual responsibility for health care decisions. T
