Florida HSA- Health Savings Accounts

Besides making the pharmaceutical companies even richer, the new Medicare bill created Health Savings Accounts to replace the Medical Savings Account (MSA). When used properly, HSA plans can be very economical alternatives to traditional Florida group insurance plans

Florida HSA (Health Savings Accounts) plans will become available as of January 1, 2004. The Medical Savings Accounts will no longer be sold at that time. HSA plans are available to just about everyone. You do not have to be self-employed.

Thus far, there are no specific group HSA plans available in Florida. However, this will probably change in the not too distant future. In the meantime, we can offer a single list billed, individual HSA plans.

Q. Are these currently group insurance plans or individual plans?
A. They are individuals plans and not guaranteed issue group products.

Q. For a self employed individuals how can these plans help me save money?
A. Let me offer a simple scenario with some actual numbers.

I am using a family of four with the parent ages of 45 and 40 and two kids.

Deductible: $ 5,150
Monthly Cost of Insurance $300.90

Contribution to the Health Savings Account $ 429.16
Total Monthly Cost $ 730.06

Now watch this, its really beautiful. We will use a 28% tax bracket for this illustration.

Tax Deduction for Insurance (Insurance Rate x 100% x 28%) $ 84.25
Tax Deduction for Savings Deposit (Savings Deposit x 28%) $120.16
Total Tax Savings $ 204.42
Cost After Tax Savings $ 525.64

But remember, the $429.16 is your money. It is sitting in an interest bearing account in your name. You never gave it to the insurance company. So subtract that amount out.

The Net Monthly Cost of Insurance after Taxes $ 96.48
With a Health Savings Deposit of $ 5,150.00 at the end of the year.

Q. How can I use a Florida HSA plans with my small group?
A. You have to keep in mind that these plans are medically underwritten. So, the group and any dependents need to be relatively healthy. If that is the case, you offer the HSA plan in conjunction with a medical allowance that you deposit in their savings accounts. You get the deduction for the HSA contribution and they pay for their own health insurance.

For the individual these Florida HSA plans can dramatically lower your health insurance costs. Rather than spend a small fortune on low deductibles and copay, you are having Uncle Sam supplement your medical costs. Call us for specific quotes and answers to any questions you might have about these plans.

Please call us at 800-986-4786 for more information about Florida Health Savings Accounts.