Health Insurance in Illinois – What About HSA?

When you are searching for Illinois health insurance, you get to see a variety of options.  One of the newest things to consider would be an IL medical insurance option called health savings accounts. Health savings accounts, or HSA’s as they are generally called, are very popular. An estimated 2.5 million Americans are enrolled in these consumer driven health plans since they started in 2004.  However, HSA’s are not just for anyone.  We’ve come up with some top tips to figure out if an HSA will work for your Illinois health insurance plan.

1. Those who have HSA will cut their insurance costs by an average of 40%.

To realize significant savings, you are someone that pays all of your own health insurance premiums.  This is frequently someone who is self-employed and are fairly healthy with few medical costs.

2. You get more freedom of choice with health savings plans

By having an HSA plan, consumers are now back in control of their own health care. This also means that each individual must be more responsible for his or her own IL health insurance decisions. This isn’t always popular with or appropriate for everyone, especially those who enjoy the HMO-type “co-pay” plans.

3. Reduce income taxes with an HSA.

Each dollar that you contribute to your HSA is deducted from your taxable income.  Whether you spend it or save it, it counts as as deduction similar to your IRA contributions. Also like an IRA interest and earnings accumulate tax free. Withdrawals are tax-FREE when used to pay qualifying medical expenses.

4. Before getting an HSA, you must already have an Illinois medical insurance plan in place.

IRS regulations, however, are quite specific as to what qualifies as a plan.  Not just any policy with a so-called “high deductible” will work.  Make sure that you are insured under a properly qualified policy. Be sure to find a qualified and licensed health insurance broker with knowledge on properly qualified HSA plans.

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