Tips for saving big on health care!
Published: 02 August 2014 04:32 PM
Updated: 02 August 2014 04:32 PM
If your health insurance policy has a deductible of at least $1,250 for individual coverage or $2,500 for families in 2014, you may be eligible to open a health savings account. An HSA lets you set aside tax-deductible money. Or it’s pretax money through an employer. You can use it tax-free in any year to pay your insurance deductible and other medical expenses.
In 2014, you can contribute up to $3,300 to an HSA for individual coverage or up to $6,550 for family coverage. You can contribute an extra $1,000 if you are 55 or older anytime during the year.
Get credit for your deductible. Even when you’re paying out-of-pocket during the deductible period, file the claim so you’ll get the rate the insurer negotiated with the provider. Check your explanation of benefits to make sure you receive credit for costs that count toward meeting your deductible and your annual out-of-pocket spending limit.
Time your procedures carefully. Consider scheduling procedures near the end of the plan year after you’ve met your deductible, rather than waiting until the new year when your deductible resets.
Get free HSA money from your employer. Many employers match HSA contributions or seed your account after you sign up, typically adding about $500 for single plans and $1,000 for family plans. Your employer may add more if you participate in a wellness program or have a health-risk assessment.
Boost your HSA contribution limits. If you have an HSA-eligible health insurance policy on Dec. 1, you can make the full contribution for the year even if you’ve had the plan for only a short time. But if you didn’t have an HSA-eligible policy for the full year, you must then keep it for the entire following calendar year or pay a penalty.
Match your HSA investments with your time frame. If you plan to use your HSA to pay medical bills in the near future, look for an administrator with low fees and a debit card that makes it easy to use the money at the doctor’s office. If you use other cash for current medical outlays and want to keep the money growing in your HSA for a big expense down the road, look for an administrator that offers attractive investment choices. See if you can minimize fees by maintaining a minimum balance. Compare HSA administrators’ investing options and fees at hsasearch.com.
Source Kimberly Lankford, Kiplinger’s Personal Finance Dallas News- Tips for saving big on health care