A Health Savings Account lets you take control of your Medical Cost and Save on your Health Insurance

Instead of paying high premiums to your insurance company, wouldn't you rather keep that money and receive identical coverage?

That's what health savings accounts are designed to do. A Health Savings Account (HSA) let's you save for qualified medical and retiree health expenses on a tax-advantaged basis. That's right. You'll be paying your medical bills with tax-free dollars.

To establish an HSA, an individual must first enroll in an HSA-COMPATIBLE High Deductible Health Plan. This plan must have a minimum deductible of $1,000 and an out-of-pocket maximum not to exceed $5,500.

For California families, the minimum deductible must be $2,200 and the out-of-pocket maximum cannot exceed $11,000. All medical expenses, including doctor's visits and prescription drugs apply towards the deductible. No benefits are provided until the annual deductible is met. After that, most insurance plans will pay 100% of your remaining costs.

Once you buy the HSA-Compatible Health Insurance Plan, you can contribute to a Health Savings Account. Your contributions are tax-deductible and withdrawals are tax-free, provided they are used for current and future "qualified medical expenses."

Benefits of starting a Health Savings Account:

• You can save on your current Health Insurance Premiums by switching to a health savings account.
• Your savings can cover your pre-deductible Health Care Costs and other qualified medical expenses.
• HSA funds can be used to pay for qualified medical expenses not covered under your health plan.
• Money not spent rolls over to the following year.
• Potential exists to build significant, next-egg balances after years of tax-advantaged contributions and interest growth.
• Your contributions are tax-deductible.
• Interest earned is tax advantaged.
• HSA withdrawals are tax-advantaged for qualified medical expenses.

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