Health saving is one of the types of bank savings, but they are different when compared with the standard savings which will serve as the emergency fund, or vacation fund, the money that will be saved for health will only be used to take care of health care expenses. There are so many healthcare plans to choose from you have to select the right one. Some will be excellent because they will have the low deductible health care plan with a coverage that is amazing but others will not be that fortunate. The money set aside for the healthcare can be used to cater for annual physical visits, dental work, office visits and any other cost. Continue reading to understand the five steps of investing in your health saving account.
The health saving account will not be a good thing for everyone. To qualify for the account, you must have the high deductible health insurance plan. As from 2013, for someone to be eligible for the health saving account, the minimum annual deductible has been $1250, and if you have families, it’s $2500. The state that you live in must have accepted the health saving account, but if the other health insurance already covers you, the policy has to be the one that has the high deductible plan.
Review your Finances:
To fully benefit from health saving, the cash saving has to be deposited in the account. The limits that the IRS will have will be on how much you can contribute annually to the account $6250 for families and $3100 for individuals.
Open the saving account through your employer:
If in the company that you work in the employer will cover the health insurance expense, the only option that you can have is the high deductible plan. Since the only thing the cover will take care of is the major medical expense. But some employers will go out of their way to pay for the deductible plan with health saving account, that way as the employee you will have the chance of opening the account when they enroll the health plan.
Get the health saving account on your own:
Every bank will offer the health saving account or the credit union. If the employer has not provided the saving account, then check with your bank. The bank will provide you with the debit card that will be attached to the saving account, making the whole process easy to pay the amount in the saving account. If you don’t have the time to visit the bank you can set up the account online.
Check Competitor Fee:
If the bank that holds your checking and the one that you have been saving with has high fees, you don’t have to open the health saving account with them. There will be fees that will be accompanied with health saving accounts like the annual fees and maintenance fees. If you are not careful, the fees will cost you a lot. Check several banks comparing the fees before going ahead and opening the account.
Edward Schinik is the Chief Operating Officer with the Investment Manager.