insurance premium tax deductible
Health Savings Accounts offer tax deductions for medical expenses, and the opportunity to establish an additional retirement account. But regardless of any other positive benefit of HSAs, lower premiums are the main reason that thousands of Americans have chosen health savings accounts as the best way to protect your family's health and property. Here are some key tips on how to keep their insurance premiums low health.
1. Choose an HSA qualified plan for lower rate increases.
Average premiums for group health insurance rose 9.6% last year and rose more than 10% for each of the last six years. Individual plans went up even more. However, it is expected that Most HSA plans experience much lower rate increases. A very large study was recently published showing that rate increases over the past year for consumer-directed plans such as HSA plans was only 3.4%. Blue Cross of Minnesota has reported that its HSA customers spent 8% less than their insurance customers traditional. Humana has reported claims costs "of 4.9% for consumer-directed plans, compared with a 19.2% increase in claims for other plans. In fact, the average HSA premiums for individuals have fallen by 19.5% over the past two years.
The reason these plans have lower rate of increase is that people who have HSA qualifying high deductible health plans tend to pay more attention to costs, and take more care of their health. For example, an HSA owner offered a statin to lower their cholesterol may be more likely to obtain a generic version, or ask your doctor if inexpensive nutritional supplements such as niacin or fish oil may be a solution. These actions save money insurance company and should result in a lower rate increase.
2. Raising your deductible and your account HSA grows.
At the back of his mind to build a financial cushion that allows you to increase your deductible in your account grows. Every time you raise your deductible, should lower your premium.
By the way, do not forget that whenever the funds in your account will get an instant tax deduction. By offsetting savings tax against their cousins, you'll find the net cost for an HSA plan can be very low.
The maximum allowable contribution increasing annually with the increase in Consumer Price Index. Currently, the individual contribution limit is $ 2,700, and the limit of a family is $ 5,450. Thus, each year you can deposit a larger amount in your HSA and continue to increase your deductible, if desired.
3. Staying healthy, so you can change plan.
All the health insurance plans have rate increases, and we have seen premiums jump over some HSA plans. If a rate increase passes you, you can switch to a different insurance company – but only if it passes their insurance needs. If the chronic disease develops, you may be stuck with your current plan, and accompanying its rate increases, for eternity. Or at least it may seem that much …
If you pay attention to ads for pharmaceuticals, learn the lifestyle has nothing to do with the disease, and is natural and healthy to be on many medications for the rest of your life, then going to solve their problems health.
If you pay attention to science, you know the truth is very different. It appears lifestyle is probably 95% of the image, and we know that occurrence of degenerative diseases can be dramatically reduced and even prevented.
Fortunately, most HSA owners are interested health, wellness and disease prevention. After all, are paying their own doctor visits if they get sick. HSA owners are also "sighted" people, and how to plan their future – both financial and physical. You can improve your odds of excellent health as only a few key habits:
- Eating very large quantities of vegetables and fresh fruits. Shoot for 35% of your calories. This will reduce your risk diabetes, high blood pressure, heart disease, cancer, and more.
- Limit your intake of sugars and starches and carbohydrates bread and pasta. Most health problems in the U.S. are related to metabolic diseases including insulin resistance.
- The exercise and weight training. Exercise guru Jack La Lanne 93 laps on 26 September, and says that if you have muscles you never feel old.
4. Compare your plan with other plans available at least once a year, or whenever you get a rate increase.
Often times people plan remains much longer than they should, and end up paying too much. If their rates go, you should compare a wide variety of plans to determine if you are in the right plan for your needs and budget.
By using these four strategies, the typical family can save thousands of dollars in insurance premiums health and still protect against unexpected major medical expenses.
About the Author:
By Wiley Long – President, HSA for America (http://www.health—savings—accounts.com) – The nation’s leading independent health insurance firm specializing in individual and family coverage that works with a Health Savings Account. Please link to this site when using this article.
Article Source: ArticlesBase.com – Keeping your Health Insurance Premiums Low
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