How New Banks Are Specializing in Health Savings Accounts

Record numbers of people have been openingwith in-network doctors and hospitals may be
tax-advantaged Health Savings Accounts to getsignificantly less expensive so be sure you know
tax deductions for a wide range of health-relatedwhich are considered in-network.
expenses. So, it's not surprising that there's aContributions to a HSA Are Tax-deductible
bank solely dedicated to health-related accounts.In 2010, you can contribute up to $3,050 as an
Blue Cross and Blue Shield Association membersindividual, and families can contribute up to $6,150
established the Blue Healthcare Bank, and it canto a HSA. Contributions are not required, but your
provide a Health Savings Account (HSA) in all 50HSA contributions are tax-deductible, and
states. A Blue Cross Blue Shield HSA, like anywithdrawals from a HSA to pay for qualified
other HSA, offers a tax-free way to savemedical expenses are tax-free.
money for health-related expenses.Contributions can be made with pre-tax dollars
The Blue Cross and Blue Shield Association is athrough employers, or you can take a tax
national group of 39 independent insurers, such asdeduction when you pay for medical expenses
Blue Cross of Idaho that was among the firstwith post-tax dollars.
members to work with the Blue Healthcare Bank.
The new bank can administer Health SavingsHealth Savings Accounts Can Be Used for Diverse
Accounts for the 98 million people who have BlueHealth-related Costs
Cross Blue Shield plans, but no one has to open aIn addition to common health-related fees, the
HSA just because they have Blue Cross Bluequalified expenses you're allowed to use your
Shield insurance.HSA to pay for include expenses that may not
Health Savings Accounts Work with Lower-costbe covered by health insurance. That includes
Insurancedental fees and dentures, as well as the fees of
To start a HSA, you must buy one of thepsychiatrists, psychoanalysts, psychologists, and
high-deductible health insurance plans that can bepsychotherapists. Physical therapy fees are also
combined with a HSA. As insurance premiumqualified, including chiropractor services,
increases spike by up to 39 percent, more peoplehydrotherapy, and medical massage.
are switching to High-Deductible Health InsuranceYou can also use your HSA for acupuncture,
because these plans have lower monthlyaromatherapy, Ayurvedic medicine, healings by
premiums than traditional plans.Christian Science practitioners or other healers,
Since high-deductible health insurance plans costhomeopathy, nutritional consultants, and traditional
less, you can contribute what you save onChinese medicine. Vitamins prescribed by a doctor,
premiums to a HSA. If you're relatively healthynonprescription medications (such as aspirin and
and don't have regular medical expenses, you'llcough syrup), and birth control pills are also
save on premiums without having to spend muchqualified.
for medical-related fees.Vision correction, including contact lenses and
Health Savings Accounts Earn Tax-free Interestreplacement insurance, eye glasses and exams,
Like an IRA, a HSA earns tax-free interest, and alland laser eye surgery can be paid for from a
funds left in your account at the end of the yearHSA. A closed-caption decoder for TV, hearing
are carried over to the next year. When youaides and batteries, lip-reading expenses, modified
retire, you can withdraw your HSA balance like anphones, and special education are also qualified.
IRA.If you need adult disposable diapers due to
If you're under age 65, you can open a free HSAneurological disease, an autoette or wheelchair,
when you buy a qualified high-deductible healthbraces, crutches, handicapped car controls or
insurance plan, and you can keep your HSA evenmodifications to accommodate a wheelchair,
when you're covered by other policies. You can'thome modifications for medical care (including
have medical expenses paid by both insuranceelevator systems and reclining chairs for cardiac
and a HSA, though.patients), mattresses prescribed for arthritis,
Compare HSA Plans to Find the Best Ratesorthopedic shoes, or a prosthesis, you can use
Not all high-deductible health insurance plans workyour HSA.
with Health Savings Accounts. To open a HSA,In addition, your HSA can be used to pay for
you'll need a compatible high-deductible healthchildbirth classes, programs to stop smoking or
insurance plan, and you'll need to compare planlose weight, and treatment-related lodging (up to
benefits and rates.$50 per person with restrictions) and
Check the policies' annual deductible, which is thetransportation. Dyslexia and remedial reading
amount you'll have to spend before coveragetraining are also qualified. You can even pay
begins. After the deductible is met, whatlong-term care premiums from a HSA, and you
percentage will you have to pay for specificcan pay for these expenses for your spouse or
services, such as doctor office visits? Thatany dependent family member even if that
percentage is called coinsurance. Look for theperson is not covered by your insurance. All of
annual out-of-pocket maximum, and the lifetimethese payments can be deducted from your
limit on coverage. Be sure you understand howincome to reduce your taxes.
the limits and maximums can interact. Working