Health Savings Account Is Not Complete Lifesaver Despite Its Benefits

In United States, healthcare is a major issue and healthcare plans are best source of profits for health insurance service providers. A large quantum of US population enjoys the benefits of multiple health insurance plans, some are even high-end health insurance plans. The best ones are High-deductible health insurance plans (HDHPs) that don’t put burden on their subscribers by allowing them to pay just a chunk of medical expenses from their own pocket, before the insurance will kick in. The best vale of health insurance is obviously in these plans.

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Medical savings account benefits

Health Savings Account (HSA) is a good connection of High-deductible health insurance plans (HDHPs) which is a medical savings account specifically designed to meet medical reimbursement demands of large number of federal taxpayers. The facility of opening and maintaining HSA is available with many banks and other institutions like lively me. This account has many benefits to save tax on your personal income and to get your medical cost reimbursed due to which HSA is considered as dual advantage account. This account is beneficial from perspective of tax savings because HSA deposit and withdrawals are tax-free which means money that you get tax-rebate on HSA deposits, but don’ pay tax on the withdrawals during a fiscal year. This account is also beneficial from the perspective of insurance reimbursements because you can avail pay for some treatments that are not covered under your health insurance plan, and previous years’ payments as well, if you provide the evidence. You can know of more benefits by visiting on https://livelyme.com.

HSA drawbacks

Health savings Account is easy to maintain and also a good account for its benefits except few drawbacks. You are not allowed to make contributions in this account after your 65th birthday. Even under 65, non-medical withdrawals are taxed and you also have to pay penalty of 20% for such withdrawals. This is not complete life-saver account as someone would need because high deductibles could still be high.