Health Savings Accounts
Health Savings Accounts consist of two components. The first is a qualified high deductible health insurance plan, and the second is an individual tax-exempt trust. The trust account is designed
to pay for routine medical expenses and/or provide savings for the future. The money contributed to the account can be deducted from your gross income, allowing tax-free contributions. The money
can be used at any time to cover allowable medical expenses. The scope of allowable expenses is defined by the IRS, and is much more liberal than most insurance carriers.
There are a few requirements for a qualified high deductible health plan. For an individual, the annual deductible must be at least $1,050, and the out of pocket expense limit less than $5,250. For families,
the deductible must be at least $2,100 and the out of pocket expense limit less than $10,500. The plans may not have copays for doctor visits or prescription drugs. Some qualified plans may have a lower deductible
for preventive care only.
Benefits Network offers Health Savings Account plans for both individuals and groups. Please contact us for more information.