The Brand X HSA-Qualified plan provides comprehensive health care coverage and is eligible to be used with an HSA. HSAs are special tax-deductible accounts that work with HSA-qualified health plans. Much like an Individual Retirement Account (IRA), an HSA is established through annual contributions by you. In the case of the HSA you can contribute up to 100 percent of your plan's deductible amount - or up to the maximum contribution levels determined by the Internal Revenue Service each year. The primary purpose for opening an HSA is to save funds for future medical expenses. The second reason is to save funds for retirement in addition to other retirement vehicles.
Health savings accounts are managed by HSA trustees, usually a bank or other financial institution. You choose the bank that will administer your health savings accounts. For health savings account information, including investment options and the availability of an HSA debit card, you should consult the bank administering your HSA.
For your convenience, we have partnered with U.S. Bank, an FDIC-insured financial institution. U. S. Bank will establish and administer your Health Savings Account. U.S. Bank will provide:
Monthly statements, either paper or online, showing your account activity.
Online and toll-free access to account information.
Mutual fund investment options for a portion of your HSA funds
An HSA debit card and checks for quick, easy payment of qualified medical expenses (QME). Please see www.irs.gov for a list of QMEs.
Here's what the site says about them. I don't really understand it. If you have one in conjunction with your health insurance, is your deductible lower, your co-pay, what? What is the benefit, other than taxes?
So essentially -- if you spend less than $10,000 for your family's health care in the course of a year then an HSA is a good idea.
If something catastrophic or chronic happens you pay the high deductable every year and then the insurance kicks in.
Instead of paying $10,00 a year for regular insuarance (about what we paid on our old insurance premiums) we would pay maybe $4,000 and contribute $6,000 into the HSA (this is a wild guess).
The $6,000 contribution would not be taxed.
Does that sound right?