Health Savings Accounts:

The wide variety of qualified medical expenses makes H.S.A's particularly attractive for those who prefer alternative care, or who have a variety of medical expenses.  

H.S.A's are somewhat similar to I.R.A's, in that they are a plan set up by Congress where you can put aside a certain amount of tax-deductible dollars to pay for out of pocket medical expenses. A high deductible policy works with the account. You must have no other health insurance to participate.

Our Health Savings Account FAQ answers some common questions.

Health Savings Account Qualified Medical Plans

There are seven companies in Oregon currently offering new Individual Health Savings Account(HSA) qualified health insurance plans. Time(also d.b.a. John Alden, Fortis and Assurant) offers two plans with three different deductibles and three different coinsurance options. LifeWise offers three different health plan options. PacificSource has five different plan options available. ODS Health Plans has one plan available. Regence BlueCross BlueShield of Oregon has three plan options and HealthNet of Oregon has one. Kaiser has a couple of plan options available. If you currently have an American Republic MSA qualified plan, it also will qualify for the HSA account. However American Republic no longer offers these plans for sale in Oregon at this time.

Health Savings Account (HSA)

2007 HSA Updates and Limits

Health Savings Account (HSA) plans offer the ability to build up savings to pay for future medical expenses as a tax exempt savings account that is owned by you and managed by a financial institution. Like an IRA, contributions to an HSA are tax deductible and continue to grow tax deferred. Also, you can still deduct 100% of your monthly premium if you are self-employed. The cost of a high-deductible health plan is lower than a low-deductible plan. The contributions to an HSA can be used to pay for health care that is not covered under your traditional or PPO individual health plan. Examples of some of these forms of treatment are vision, acupuncture, chiropractic, or dental care. All of your unused contributions to the HSA will continue to grow. At age 65, you can use these accumulated funds as retirement income or to offset future health care costs such as long term care. All of the money deposited into your personal HSA is your money. If you change jobs or move, your HSA account still belongs to you.

Contributions are allowed up to 100% of the health plan deductible. The maximum annual contribution is $2,850 for self-only policies and $5,650 for family policies (indexed annually). Individuals 55-64 may make additional "catch-up" contributions of up to $800 in 2007, increasing to $1,000 annually in 2009 and thereafter. A married couple can make two catch-up contributions as long as both spouses are at least 55. Catch-up contributions will help individuals accumulate assets for retiree health expenses.

Contributions to HSA accounts may be made by individuals, family members and employers. Contributions made by individuals and family members are tax-deductible (for the account beneficiary) even if the account beneficiary does not itemize. Employer contributions are made on a pre-tax basis and are not taxable to the employee. Employers will be allowed to offer HSA's through cafeteria plans. The investment earnings accrue tax-free.

HSA distributions are tax free if they are used to pay qualified medical expenses. Distributions made for any other purpose are subject to income tax and a 10% penalty. The 10% penalty is waived in the case of death or disability. The 10% penalty is also waived for distributions made by individuals age 65 and older. Upon death, HSA ownership may transfer to the spouse on a tax-free basis.

Although Loewenthal Insurance LLC does offer HSA eligible health products, we are not qualified to offer the HSA's. Please contact your financial advisor to learn more about HSAs and how you may qualify. We have a list of the Financial Institutions we are aware of offering HSA accounts. We do have all of the HSA and MSA to HSA Rollover information on our MSA Washington site www.msawashington.com .

Please submit a request or call for a quote on the plans available in your area.

HSA qualified plans are now available for groups as well as individual in Oregon. The plans for groups are limited at this time. More carriers are getting involved. Please email us, quote@lowinsure.com .

If you would like more information on HSA Plans in Oregon, please visit our Oregon HSA site www.hsaoregon.net

If you live in Washington and would like information on HSA options please visit our HSA Washington site www.msawashington.com

See Oregon Health Insurance for related information, Oregon Health Insurance Pros & Cons for comparisons.

If you live in Washington and would like information on HSA options please visit our MSA Washington site

HSA Financial Institutions lists some institutions offering hsa's.

1. Up to the maximum tax-deductible medical savings account contribution.
2. As described by IRS Code Section 220(d)(2).
3. IRS Code Section 220
4. Policy meets current federal guidelines for use with a medical savings account. If the federal minimum and maximum limits change, deductible choices will automatically be adjusted to the next available deductible as needed to meet federal guidelines.