Benefits of HSA insurance
HSA insurance or Health Savings Account refers to a type of insurance that is intended for a person’s medical or health-related needs. ‘Â Its basic goal is to help people have some form of medical insurance with lower premiums. ‘Â With the very high cost of standard health insurance, the HSA concept is increasingly becoming popular in the US because of the following benefits:
1. Tax advantage
HSA is a type of medical insurance that is not subject to any federal tax. ‘Â Any funding into this particular account will be saved and the fund owners need not worry about tax deductions. ‘Â There are also some states in the US that offer tax-free HSA benefit.
2. Medical savings
HSA insurance also works like a medical savings account that literally grows as more funding is added to it every year. ‘Â The best thing about HSA insurance is that any unused funding of the previous year will simply be carried over the next year to cover a person’s medical expenses. And even better for US citizens is the fact that if the HSA fund is left unused, it could also serve to supplement one’s retirement fund. ‘Â Money in the fund also earns interest which makes it function like a savings fund for one’s future.
3. Portability
People in the US need not worry about going from one job to another because their HSA insurance will literally go along with them. ‘Â The insurance fund is tagged to the person him/herself and so it does not matter if there are employer changes involved in the process.
HSA insurance is a great way for people to avail of medical services when needed. ‘Â This type of medical insurance also helps people save money for their own medical needs in the future and in this way it encourages people to take responsibility of their health-related needs in the future.
