Individual Health Insurance

New 2010 HSA Contribution Guidelines

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Here's another great fact about HSA programs - you can make your annual contribution into the account at any time throughout the year.  Many people contribute on a monthly basis to make it easy for budgeting purposes. However, if you just enrolled in November in a high deductible health plan you can still make the entire year's worth of contributions into your account and enjoy all the tax advantages that go along with having an HSA. (You must have coverage in place by Dec. 1 and remain covered through the following year.)

2010 provides individuals and families even greater opportunities to save for current and future health care expenses with new contribution amounts, deductibles and out-of-pocket maximums. In 2010:

• Individuals with an HSA program can contribute $3,050 and families can contribute $6,150 into their accounts. HSA holders age 55 and older can contribute an extra $1,000 for the year. 
• The minimum annual deductibles are $1,200 for individuals and $2,400 for families.
• The annual out-of-pocket maximums (including copays, deductibles and other amounts, but not premium) are $5,950 for individuals and $11,900 for families.

Remember, all the money you contribute into your HSA is tax deductible from your gross income and grows tax deferred. For more information on HSAs, visit the Celtic HSA Resource Center.

Will we still be covered?

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The kids are grown and you and your spouse are finally getting the “just 15 minutes of quiet” you’ve been asking for all those years. Now what? It may be that dream you had of starting your own small business together. It’s probably safe to say your soon-to-be old employer isn’t going to let you stay on their group plan. Not a problem. There are many plans available in the individual health insurance market that may meet your needs.

You no longer need comprehensive coverage for your children but you may still want it for yourself and your spouse. Many plans have coverage that includes preventive annual screenings, well visits and prescription drugs. Many plans also include money-saving benefits like non-tobacco rates and/or preferred rates. A healthy lifestyle program may also be a plan feature that provides additional savings, such as cash back on annual gym memberships and fitness classes.

Another type of coverage that may fulfill your needs is a HSA program, which combines a qualified high-deductible insurance plan with a health savings account component. Created under federal legislation, HSAs offer a way to purchase a health insurance policy and save money tax-free. Contributions to your HSA account are tax deductible up to the lesser of 100% of your deductible or to the IRS allowed maximums. The withdrawals from your HSA account are tax-free when used to pay for qualified medical expenses. Your HSA money earns interest tax deferred and rolls over year after year. What you don’t spend on health care continues to grow as tax deferred savings until you reach age 65 at which point you can use the savings tax-free for medical expenses not covered by Medicare or for non-qualified expenses and only receive normal taxation.

With all the options available in today’s consumer market, you can venture ahead with your dreams of your own business without the worry of “will we still be covered?”