Health Savings Accounts

• Health Savings Accounts Issues

A High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA) provides traditional medical coverage and a tax free way to help you build savings for future medical expenses. The HDHP/HSA or HRA gives you greater flexibility and discretion over how you use your health care benefits.

The HDHP features higher annual deductibles (a minimum of $1,100 for Self and $2,200 for Self and Family coverage) than other traditional health plans. The maximum amount out-of-pocket limits for HDHPs participating in the FEHB Program in 2005 is $5000 for self and $10,000 for Self and Family enrollment. Depending on the HDHP you choose, you may have the choice of using in-network and out-of-network providers. Using in-network providers will save you money. With the exception of preventive care, you must meet the annual deductible before the plan pays benefits. Preventive care services are generally paid as first dollar coverage or after a small deductible, or copayment. A maximum dollar amount (up to $300, for instance) may apply.
http://www.opm.gov/hsa/

The Insider will help you locate the ideal Health Savings Account for you. We recieve hundreds of questions about Health Savings Accounts, and HSA Inside provides expert answers. Can HSA funds be used for reimbursements on the following items: OTC medicines, saline solution for contact lenses, durable medical equipment, crutches and orthotic devices. My research leads me to believe that OTC medicines and saline would not be eligible, but I would like to double check and verify.

Can you expand on the statement that the contributions to an HSA is tax free. Is the contribution an individual makes to a non employer sponsored HSA a deductable expense to the individual?

Which I would very much like to do. I am insured (individual coverage) through my employer, with a basic plan that has a $1,000 deductible and a $4,000 maximum out of pocket for Tier A in-network services (the deductibles and OOP max increase if I go outside the network to $2000/$8000 for Tier B or $4,000/16,000 for Tier C). I pay a $30 co-pay for office visits/urgent care and a $200 co pay for Emergency Room visits. I am covered at 100% for preventative care such as mamograms and annual pap/pelvic. After my deductible is met. I have a separate plan, also through my employer, that provide for co-pays of between $5-$15 depending on whether the drug is brand or generic.
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