HSA Health Savings Account for high-deductible health insurance.
Thanks very much to ObamaCare which basically eliminated my small business health insurance plan. As of my renewal date in September 2014 I had to cancel my business health care plan resulting in my wife and I being introduced to individual health insurance from the same company.
So the new individual plans all have deductibles you have to meet before they pay out. The deductible we chose was 6000 dollars for our family. Oh yes, and the cost of the insurance premium went up 35 percent.
So we now heave a health savings account set up at our credit union were we can put up to 6550 per year in to cover the deductibles on our health insurance. This set aside 6550 per year is nontaxable income.
So we have a debit card for this account which we can use at the pharmacy and doctors office. It won't take long to reach the deductible because my wife and I both use tier 3 drugs which cost a fortune.
So if you have a high-deductible health insurance plan you may want to consult with your tax adviser about an HSA.
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