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Joseph T. Horvath, CSA
Certified Senior Advisor (CSA) ® |
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Frequently
Asked Questions
Who can have an HSA?
Any “eligible individual” can establish an . An “eligible individual”
is generally someone that is covered under a high-deductible health
plan and is not entitled to benefits under Medicare (generally, has
not yet reached age 65); and may not be claimed as a dependent on
another person’s tax return. |
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What is a high
deductible health plan?
Generally, an HDHP is a
health plan that satisfies certain requirements with respect to
deductibles and out-of-pocket expenses. Specifically, for self-only
coverage, an HDHP has an annual deductible of at least $1,000 and annual
out-of-pocket expenses required to be paid (deductibles, co-payments
and other amounts, but not premiums) not exceeding $5,250. For family
coverage, an HDHP has an annual deductible of at least $2,000 and annual
out-of-pocket expenses required to be paid not exceeding $10,000. |
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How does an
eligible individual establish an HSA?
Beginning
January 1, 2004, any eligible individual can establish an . Prior
to contributing to an HSA you must be enrolled in a qualified high
deductible insurance plan and the HSA must be administered by a
qualified custodian. MyBizBenefits provides a gateway search for HSA
qualified insurance plans and a no fee HSA located on our HSA Quote
page. |
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Who is a qualified
HSA trustee custodian?
Any person approved by the IRS
to be a trustee or custodian of IRAs or Archer MSAs is automatically
approved to be an HSA trustee or custodian. Any insurance company or
bank can be an HSA trustee or custodian. |
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Who may contribute to an
HSA?
Any eligible individual may contribute to an
HSA. If established by an employee either the the employee or the
employer or both may contribute to the HSA. For an HSA established
by a self-employed (or unemployed) individual, the individual may
contribute to the HSA. |
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How much may
be contributed to an HSA in 2005?
For calendar year
2005, the maximum contribution for eligible individuals with
self-only coverage under an HDHP is the lesser of 100% of the annual
deductible under the HDHP (minimum of $1,000) but not more than
$2,650. For eligible individuals with family coverage under an HDHP,
the maximum contribution is the lesser of 100% of the annual
deductible under the HDHP (minimum of $2,000) but not more than
$5,250. |
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May Health Savings Account
money be used on medical expenses that do not count as covered
expenses under the insurance policy?
Yes. This is
another of the great advantages of the . The
typical American is out-of-pocket a considerable amount every year
for medical expenses that are not covered under the insurance plan,
due to the fact that the plan may not cover dental, or because of
deductibles and co-payments. The individual is presently paying
those amounts with after-tax dollars. If you have a daughter that
needs braces for her teeth at a cost of $4,000, it typically means
you need to have $6,000 in pre-tax income. With a Health Savings
Account, you are going to cut out all of the extra cost by paying
for dental work, eyeglasses, and other expenses not covered by the
deductible with tax-free money from your Health Savings
Account. |
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Now that the deductibles have
come down, will a traditional high deductible policy qualify? My
policy has a $2,000 deductible per person. For my wife and me, that
would be $4,000.
No, that plan won't qualify. The law is
specific and clear. For a family (2 or more persons), the deductible
must be one family deductible (all covered expenses add up to one
deductible). The traditional high deductible policy does not fall
within these requirements. |
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If I start my insurance coverage
on June 15th, can I still fund up to the deductible?
No,
the deposits are pro-rated by month, so if you start July 1, you can
only put in 6/12ths of the deductible in the Health Savings
Account. |
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This sounds great. How do I set up a
?
Easy. When you apply for
insurance with Medical Savings Insurance Company, we automatically
create an account for you. There is no additional paperwork
necessary |
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I work in a seasonal business. My
busy times are Christmas and the 4th of July. Can I just fund my
account at these times, or do I have to do it with my regular
insurance billing?
Funding the account is extremely
flexible. (Don't forget, the amount is totally optional). For ease
and convenience, we can just add the deposit to your insurance bill.
Or, you can use one of our deposit envelopes and mail us a check
whenever you wish. As a matter of fact, you have until April 15th of
the following year to make a deposit to your Health Savings
Account. |
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Contact Information:
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Health Savings
Virginia
Joseph T. Horvath
2342 W. Main St.
Salem, VA 24153 |
Toll Free: |
(800) 383-7729 |
| Phone: |
(540) 380-5650 (Salem) |
| Fax: |
(540) 380-5654 |
| E-mail |
jthorvath@msn.com |
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