For some people, the costs of healthcare are manageable at their present income level. However, for a growing number of individuals in the U.S., the cost of healthcare has become overwhelming and utterly unaffordable. For example:
As an employer, you are likely looking for ways to save healthcare costs without hurting the overall morale of your employees. One option to explore is offering high deductible health plans to reduce your rising premium costs.
One of the greatest advantages of a health savings account (HSA) may also be one of the least well-known. The triple-tax advantages of HSAs, as well as the fact that HSA balances roll over each year are great, but did you know that there is no expiration date to reimburse yourself for qualified medical expenses? This means you can “save now, and cash in later.”
As we discussed in a recent blog post, proposed legislative changes could almost double the amount health savings account (HSA) owners are allowed to contribute annually. Financially-savvy individuals have been using their HSA as an option to supplement their retirement savings for years. An HSA has certain tax advantages that an IRA or 401(k) does not. In this post, we will discuss a few ways that an HSA can be used to create future savings.
HSAs: The common ground
While lawmakers struggle to come to an agreement on healthcare, one thing remains clear: Health savings accounts (HSAs) have a major role to play. Provisions being considered would strengthen HSAs now and make them an even more effective way for individuals to prepare for the burden of healthcare expenses in retirement.1