Local California health insurance agent offers guidance and service in selecting an HSA policy.  Can a health savings account meet your family’s insurance and healthcare needs?

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Matt’s Health Insurance Services, a licensed independent Blue Cross / Blue Shield of California Authorized Agent, offers a rapid online quote service for California health insurance consumers seeking information on Health Savings Accounts (HSAs) and the lowered rates and more attractive policies offered by this type of plan.

Insurance consumers—particularly the self-employed—are interested in the lower costs and increased efficiency of HSAs.  These federally-mandated investment vehicles enable consumers to save and earn tax-free dollars that can prevent them from the ill effects of catastrophic medical problems.  Additionally, the freedom of these self-directed plans frees California insurance consumers from restrictive policies and “preferred” networks of many major insurance providers.    It’s estimated that the number of families using HSAs for their medical needs in 2010 will be 3500 % of 2004 levels.  Yes, that number is correct:  14 million consumers are headed toward HSA coverage by 2010.  Those numbers paint a clear picture:  HSAs fulfill a need felt by many consumers on the American insurance landscape.

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Economically, health savings accounts allow for tax-free medical savings.  Additionally, earnings on HSAs are tax-free, whether they’re invested in stable money market accounts or risky stock and real estate ventures.  And owners of HSA policies are free to visit whichever doctors, specialists, and hospitals they prefer—and to choose to undergo whichever procedures they see as necessary to their continued health.

For more information, consumers can visit the health savings account section of Matt’s Health Insurance Services online at http://www.mattsinsurance4ca.com.  A five-minute online form provides all the information necessary for you to receive a rapid response from a licensed professional California insurance provider.

For more information, visit http://www.mattsinsurance4ca.com

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It’s not just California insurance customers—all insurance consumers are constantly seeking ways to lower their insurance costs.  The rub is this:  with lower premiums come higher out-of-pocket deductibles and co-pays.  Many California insurance consumers opt to stick it out with higher premiums, choosing convenience over financial wisdom.

One of the positive developments of the past decade has been a vehicle designed to assist Americans in their quest for medical self-management and lower insurance prices. Health Savings Accounts (HSAs) are a relatively new development in the California health insurance market, allowing consumers to accumulate tax-free savings toward the resolution of future medical problems.  These plans link a cheaper –  low monthly premium, high-deductible insurance plan to a tax-free health savings account, which is directed by the account owner, rather than an insurance bureaucrat in an office miles away.  Over three million Americans are already taking advantage of these new HSA insurance plans, happy with a choice that finally offers financial wisdom and convenience.

Each year, holders of HSAs Health Insurance plans can contribute $2900 for individuals or $5800 into a special Health Savings Account you can set up at your bank.  These contributions are completely tax-free, as are the earnings they produce.  And as long as any withdrawals are used for documented, legitimate medical expenses, they are tax-free as well.  That fact remains true even if the withdrawals are used for alternative or preventive measures that most standard health insurance policies don’t cover. 

And HSAs are employer-independent, following the policyholder from job to job and from the workforce into retirement, completely eliminating the hassle and nervousness of suffering through “probationary periods” every time a career change necessitates a difference insurance policy.

In 2003, Health Savings Accounts (HSAs) came into effect. They were launched as the greatest thing since sliced bread and promoted heavily.
Five years later many people still aren’t as informed as they should be about Health Savings Accounts and how they work.

As part of the Medicare Prescription Drug, Improvement and Modernization Act, HAS’s help US citizens under 65 save money for qualified medical expenses on a tax-advantaged basis. People who purchase a qualified High Deductible Health Plan may open a Health Savings Account. The money deposited into the HAS may be deducted from your taxable income at the end of the year. The nice thing is premiums for HAS qualified health insurance plans are much lower when compared to regular PPO and HMO insurance plans.

The tax benefits you can accrue with HSAs are:
• deposits and earnings aren’t taxed and
• there is no “use it or lose it” qualifier
• Money you save in the account isn’t taxed upon withdrawal if you use the money for qualified health expenses.

The HSAs are portable, you are the owner. If you have an HSA with an employer and you leave that employer, the money you have saved in the HSA is still yours. Many people confuse MSA’s (Medical savings Accounts) which are employer owned with HSA,s (Health Savings Accounts) which are owned by the individual employees.

Since HSA’s are owned by the individual they are totally flexible. Of course you must have a Qualifies High Deductible Health Plan (HDHP) in force when you want to make any deposits. Many people who have HDHP never open an HSA. But when they do they can deposit as little or as much as they want up the limits set the IRS. If you’re looking for flexibility in terms of payments, then a Health Savings Plan might just suit your budget.

The second way to contribute to a health savings plan is your employer may make non-taxable contributions for you. Or employers with cafeteria plans may allow workers to contribute untaxed salary through a reduction in salary.

If you’re 55 or older, you can make catch-up contributions to your account. This might sound similar to an IRA, and that’s because it is similar. Funds in the account grow tax-free and there are penalties for withdrawing the money for non-medical purposes. When you do turn 65 you can withdraw the money and it will be taxed as regular income. But, if after you are 65 years old, and you use the money in your HSA for medical expenses, you can withdraw the money and not be taxed.

Because of their flexibility HSAs can come in real handy. They’re well worth considering for protecting yourself when you most need it. So if you don’t have health insurance and need it, take a look at a HDHP and then supplement it with a health savings account. Find out if this is the perfect coverage for you by talking to a qualified health insurance broker who can guide you through the process.

Contact: Matt Lockard

Tel. 805-650-9087

Email: Matt@MattsInusrance4CA.com

California small business owners are being pressured from every angle to remain in business and stay profitable. Gas prices, the cost of office supplies, liability insurance and even the cost to send a letter keeps going up and up. So what should companies do to cut cost?

Aside from layoffs, health insurance is frequently looked at as a place to save money. One California agent, Matt Lockard has started to showing Small Business owners how they can save as much as 20%-50% on health insurance premiums by opening a Health Reimbursement Account (HRA).

“Many people are not aware of this group health insurance strategy” according to Matt Lockard owner of www.MattsInsurance4CA.com . HRA’s went into law in June of 2002. That was the very beginning of the just past housing boom and spending frenzy enjoyed by many Americans. Now, stung by rising prices, California business owners need to find creative ways to cut costs.

“Setting up a High Deductible Health Plan with a top California health insurance carrier along with an HRA is a great way to provide a good, solid health benefits for your employees” says Matt Lockard. Generally the employer switches from the traditional high cost HMO or co-pay plan to a high deductible health plan and also sets up a Health Reimbursement Account with a bank. The goal is for the savings from the new low cost high deductible health plan to more than offset the amount needed to fund the HRA. If this works, the employer will save money.

Employees may also see a savings in the first month on their pay check. If the employee is paying a portion of the health insurance premium, his or her cost will go down do the lower cost high deductible plan. “The HRA strategy also puts more money into the hands of the employees who are also contributing to the monthly premium” Explains Matt. “If the employees are contributing to the health insurance premium, and the high deductible plan cost less, their share of the premium will also go down.” That’s good news for any household who is also looking for places to cut cost. A win win!

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If you’d like more information about HRA’s or if you’d like to schedule an interview please call Matt Lockard at 805-650-9087 e-mail Matt at Matt@MattsInsurance4CA.com .

But what if you have difficulty securing California health insurance? Health insurance can be expensive. Health insurance is regulated by the state in California, but the state only imposes certain controls on the price. California health insurance companies are not required to offer health insurance to every individual.

If you think that you cannot afford California health insurance, you should check whether you are entitled to free or subsidized coverage. The California Med-Cal program can offer coverage for certain groups of people, including pregnant women, elderly people, the disabled, and families with children. There are other organizations offering help with California health insurance costs for families with low incomes, including Healthy Families and Access for Infants and Mothers.

Health insurance premiums are generally dependent on your health. The health insurance company wants good odds that you are not going to file a claim on your policy. And insurers are under no obligation to insure you – they will check your health status, and if they think you are likely to make a claim, they can either give you a rate increase or turn you down. So if you are already ill in some way it can be difficult to find health insurance. This can include both physical and mental illnesses, or any condition which required medical advice and treatment. More and more Californians are finding it difficult to qualify for individual California health insurance, either because they cannot afford it, or because they cannot find an insurer who will underwrite them. Some people may have pre-existing medical conditions, or a condition which runs in their family, which means that they may have trouble qualifying for insurance cover in California.

One option in a case like this is to utilize a risk pool (MRMIP) – a state sponsored resource which helps people who can afford health insurance but cannot get a policy due to a medical condition or family history. These protections are required by federal law, but California has extended these protections beyond what is required by federal law.

Another option is insurance under an employer health insurance plan. If you are insured under a group plan in California, your health status will make no difference, and you will still be insured. This is a legal requirement under AB-1672.

If you already have insurance, there is no need to worry about how the state of your health affects your coverage – an insurance company cannot cancel your policy because of a change in your health status.

If you were insured under a group plan through your employer and you have lost your job, you may still be able to keep your insurance. Under California health insurance laws if an employee loses their job, they can sometimes stay in the health insurance plan that was offered by their previous employer. This is known as COBRA. COBRA means that employees who are made redundant or retire are entitled to pay for continuation coverage for their health insurance policy.

To learn more about California Health Insurance click here.