With the passage of the Medicare Act of 2003, Medical Savings Accounts (MSA) were replaced with the new, tax-exempt Health Savings Account (HSA). The HSA is a two-component health plan consisting of a high deductible health plan (HDHP) and a tax-free claims expense reimbursement and tax-deferred savings account. This acount mya be employer or employee funded. The HSA is the permanent expansion of the former MSA, with several very meaningful enhancements. Now everyone can take advantage of the savings inherent in this new form of "medical IRA". Consumer-directed healthcare has arrived!

Group HDHPs are available for employers with 2-50 employees and are guaranteed-issue, subject to state law. Business Groups of One (BGOO) are medically underwritten, just like with an individual medical plan.

Carriers in the group market include Assurant Health, United Healthcare, Aetna, Anthem Blue Cross Blue Shield, Rocky Mountain Health Plans, Kaiser Permanente, and others. We represent all group carriers and will assist you with determining which is the best fit for you and your company.

How does it work? Reimbursements from the savings account, used to pay for out-of-pocket medical expenses, are received 100% tax free. Account contributions are based on your policies' deductible. Catch-up contributions are also allowed for individual's age 55 or older. Contributions levels will be adjusted yearly - email us for current levels. Funds in an HSA savings account may be invested as the account holder sees fit, including CDs, money market and mutual funds, stocks, bonds, or other securities, using an HSA custodian.

• The federal definition of "eligible medical expenses" remains and allows for tax-free reimbursements on items of traditional medical care not typically covered by a health insurance policy, such as dental, vision, chiropractic, mental health, long term care services and insurance premiums, etc. In addition, preventive care services are not subject to a deductible.
• Health Reimbursement Arrangements (HRA) may be better suited to some employers. Not sure which works best for you? Give us a call to discuss at 303-422-1660 or 877-865-8701.

For additional information:

• HSA Bank - full service HSA custodian with on-line banking, internet trading, and thousands of mutual funds!
• Notice 2002-4- Request the text of the IRS guidance, with Q&A, from the Treasury Department.
• Individual HSA plans in Colorado

We provide you with Quotes-On-Line for HSA's and other plans. Find out if you, too, can save money!

Home | Site Map | About Us | Email | Quotes & Proposals | Contact Form | Privacy Policy | Links