Affordable Health and Life Plans, Inc. - Suwanee, Georgia

What's a Health Savings Account (HSA)?
An HSA combines a savings account with high-deductible health insurance. The money you save is never taxed if you use it to pay qualified medical expenses.
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Why High-Deductible Health Insurance?
To get the benefits of an HSA, the law requires that the savings account be combined with high-deductible health insurance. High-deductible health insurance costs less than traditional $250 or $500 deductible coverage.
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How Does an HSA Work?
You obtain coverage under a qualified high-deductible health insurance plan. Each year you deposit the money saved on lower premiums into a tax-favored savings account. You use the savings account to help pay for your deductible with tax-free dollars. Once you meet the deductible, the health insurance starts paying for your covered medical expenses. Any money left over at the end of the year is yours to keep.
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What Are the Benefits of an HSA?
First dollar: Savings can be used to help pay the deductible and for noncovered expenses, such as Dental and Vision. Security: Savings reduce or eliminate out-of-pocket exposure. Pool of Money: Savings not spent remain in the HSA to earn interest tax-deferred.
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What Are the Health Coverage Benefits?
Simple: 100% coinsurance for covered expenses after the deductible is met. Predictable: One deductible per family. Comprehensive: Quality major medical, including adult preventive care and prescription drugs.
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What Are the Tax Benefits of an HSA?
Deposits are tax-deductible off gross income. Interest earnings are tax-deferred. Withdrawals for medical expenses are tax-free.
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Who Is Eligible for an HSA?
Anyone who is not entitled to Medicare can have a tax-favored HSA. You must have a qualified high-deductible health insurance plan --- and no other similar health insurance. A qualified health plan for singles has a minimum deductible of $1100 For families, a qualified health plan must have a minimum deductible of $2200 --- one deductible for the entire family.
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Where Can I Get an HSA?
Contact an Affordable Health agent at 770-945-5261 locally or 800-886-8359 long distance. We have numerous well-known names such as Blue Cross, Golden Rule, Assurant/John Alden, Humana, Coventry and many others.
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What is the annual "max" contribution?
The annual contribution limitation for singles is $2900 for 2008. For families, the annual contribution limitation is $5800.
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New Health Savings Accounts Can Significantly Lower Costs for Buyers of Individual Health Insurance

Congress recently passed a Medicare Bill which offers a hidden treasure for consumers under the age of 65 who purchase their own health insurance. Health Savings Accounts (HSAs) are a victory for such consumers - here’s why:

1. Significantly lower health insurance costs. Health Savings Accounts (HSAs) allow consumers to switch from an expensive, traditional plan with doctor co-pays and drug cards to a high-deductible plan with far lower monthly premiums.

2. Triple tax advantage – previously only available to a select few. The money saved on premiums can be contributed to a new Health Savings Account (HSA) and used TAX FREE to cover deductibles and other qualified medical expenses not covered by the insurance plan.

The best part is the triple tax advantage. Here’s how it works:

a. Money contributed to the account is tax deductible*. It’s simple to claim the deduction with or without itemizing taxes.

b. Money and interest in the savings account can be used tax-free. If used to pay the deductible or for qualified medical expenses not covered by the insurance plan (like office visits, dental and vision), it will not be taxed.

c. Leftover accumulated money can be used to help fund retirement. Contributions and tax-deferred interest build a retirement fund that can be withdrawn at the age of 65 without penalty. However, income taxes will be assessed if the money is withdrawn and not used for qualified medical expenses.

3. Better coverage with more control of health insurance dollars than your customers have today. The combination of the high deductible plan with the tax-advantaged health savings account gives your clients an affordable and flexible means to buy exactly the coverage they want.

For additional information about the benefits of HSAs, call 1-800-886-8359.