Policyholders who have a Health Savings Account are being offered an easy and convenient way to reap tax benefits by United Security Life and Health Insurance Company (USL&H) who has named American Chartered Bank as its Health Savings Account (HSA) administrator.
One of the affordable health care plans USL&H offers its customers is the HSA-qualified High Deductible Health Care Plan (HDHP), which gives them several advantages, one of which is tax savings. Ms. Sandra J. Horn, President of USL&H said that the first attractive benefit having an HSA-qualified health insurance plan is low premium.
USL&H has worked with American Chartered Bank to ensure the process is seamless and that the customers are able to reap the tax benefits.
An HSA is a bank account where tax-free or tax-deductible deposits are made to pay for qualified medical expenses. Funds in an HDHP policyholder's HSA can be used to pay for qualified medical expenses like doctor visits and prescription medication, not only for the policyholder, but for their spouse and tax dependents.
Any adult can contribute to an HSA if they meet the following requirements:
• Have coverage under an HSA-qualified "high deductible health plan"
• Have no other first-dollar medical coverage (other types of insurance like specific injury or accident, disability, dental care, vision care, or long-term care insurance are permitted)
• Not enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return.
The IRS defines the maximum amount that can be deposited each year and for the year 2012, the maximum contribution limits are $6,250 for family coverage and $3,100 for self-only coverage.