La Mirada, California (PressExposure) August 18, 2008 -- Andrew Warren, a California health insurance agent has, as have so many other agents all over the country, decided to concentrate his efforts on HSA plans.
As health insurance premiums continue to rise and coverage continues to fall, agents are looking for plans offering greater value for their clients. Health Savings Accounts, seem to be the answer and here's why:
On January 1 2004, in answer to the rapidly rising cost of health insurance and the loud cries about our rapidly failing health insurance system, the United States Congress signed into law, an innovative solution, called an HSA.
The initials "HSA" stand for Health Savings Account and it is composed of two elements:
The first part is a high deductible health insurance plan, one that is "qualified" under the guidelines set down by Congress and the IRS and second, an interest bearing, Tax-exempt bank account.
The high deductible health insurance plan is designed to cover only the more expensive, even catastrophic medical costs, while the savings, or investment account is there to cover the lesser expenses, from doctor visits to prescriptions.
Funds deposited into the account belong to the plan's owner, to use as he sees fit, provided the expenses are drawn on items designated as allowable medical expenses, as defined by the Internal Revenue Service, but these allowable expenses are far more liberal and broader in scope than one would expect to find in a typical health insurance plan.
For instance, eye care, dental, prescriptions and even many over-the-counter items are acceptable as tax-free medical expenses and can be paid for from a health savings account.
In addition to creating a system which lowers health care costs by leaving the insurance companies liable for only major health costs, and giving the account owner greater choice and control of his own medical expenditures, HSAs have a definite tax advantage.
A policy holder can deduct all all funds (up to the allowable limit) made to his HSA from his gross income. Ignoring, even the substantial savings in the cost of the plan, the tax benefits alone make this an appealing solution.
In your HSA account, money not spent on any given year rolls over to the next and all funds remaining in the account can be willed to a beneficiary upon the death of the policy holder.
The American Health Care System still has its problems, but the creation of Health Savings Account Plans, simple HSAs, has improved the system greatly and health insurance agents like Andrew have begun to concentrate their efforts on offering this kind of plan to their clients.
Simple HSA Plans of California was created with one purpose in mind. That purpose is to change the way you view your health insurance. High deductible plans aren't new, however, since 2004 they have emerged, through the Heath Savings Account into one of the best plans individuals and groups can have.
Andrew Warren 14577 Stage Rd #1 La Mirada, CA 90638 Phone: (714) 561-7576 Fax: (866) 665-7276 CA License #0G09083