California Individuals and Businesses
and River Rock Insurance Services Inc. are proud to
offer assistance getting you enrolled in a Health
Savings Account compatible insurance plan in combination
with answering your questions in determining the right
Health Savings investment Account Administrator for you.
a Health Savings Account strategy?
George W. Bush’s administration created the Health
Savings Account legislation through a Medicare reform
bill in 2003. The Health Savings Account strategy is
the combination of a high deductible health insurance
plan and a completely separate investment account where
individuals and employers can contribute cash up to
certain limits tax deductible to be used on qualified
medical expenses. For a list of deductible size
limitations and requirements on capped contribution
amounts both for individuals and families you can always
cross reference the
to receive the latest and greatest figures.
Why is a
Health Savings Account strategy advantageous to me?
If you are
like half the population and use your health insurance
plan very infrequently, perhaps just an annual physical
once a year or a prescription for a cold or flu, a
Health Savings Account could be a great way to save
money and stash cash away for retirement. The high
deductible health insurance plan starts saving you money
by reducing your monthly premiums. All of your medical
expenses on Health Savings Account plans apply to your
deductible and annual out of pocket maximum with the
exception of preventative care. For a list of
preventative care inclusions, guidelines, and
qualifications you can review our overview here. You
are in effect self-insuring your small and medium bills
until your deductible is paid. But, if you’ve reduced
your monthly premiums hopefully in half then paying
these small medical bills out of pocket should still
result in a dramatic overall savings. Now, here’s the
good part...each year you can contribute up to certain
limits tax deductible cash contributions to spend on
qualified medical expenses.
How are the
Health Savings Account contributed funds treated?
deductible funds contributed to the Health Savings
Investment Account have a very advantageous position.
You can roll your money over year after year,
accumulating interest on a pre-tax basis. The money can
be spent on qualified medical expenses without penalty.
Once you turn 65 and over you can even use the cash for
Medicare expenses and Medicare premiums.
What if I
change my health plan?
find yourself in a position of employment change
perhaps, or earning access to a new health plan through
your spouse. If this is the case and you disenroll from
the Health Savings Account compatible health plan you
can still use the funds previously contributed to the
account for qualified medical expenses without penalty.
You cannot, however, contribute any new tax deductible
cash to the HSA investment account until you are back on
a compatible health plan.
all my prescriptions?
Prescription drugs, unfortunately, apply to the
deductible on a Health Savings Account plan so you have
you pay all your prescriptions out of pocket at 100%
cost until your deductible is met. If you take brand
medications monthly you may not save any money overall
as you may spend all of the account funds monthly for
your prescription costs.
to contact us anytime with questions about Health
Savings Accounts and whether or not it’s right for you.