If you’ve been shopping around for new health insurance plan recently you may have come across something called an HSA health insurance plan. This is a plan that works in conjunction with a high deductible health insurance plan.
By combining the two it allows you to get a cheaper premium and also give you a tax detectability advantage that no other health insurance plan has. However their are some down sides to this type of insurance plan you should be aware of.
The first down side to a plan like this is that if you can’t use the money in the HSA account for a qualified medical expense or you will be taxed in a similar way like an IRA. On top of that congress is always changing the rules on what you can actually deduct as medical expenses. In fact congress has recently ruled that in 2011 you will no longer be allowed to deduct over the counter medicines.
Second, in order to open an HSA account you will have to qualify for high deductible health insurance plan, and if you have a preexisting condition like diabetes you will probably not be able to qualify for a plan like this.
Continue reading The Down Side To HSA Plans
