Florida HSA- Health
Besides making the pharmaceutical
companies even richer, the new Medicare bill created Health
Savings Accounts to replace the Medical Savings Account
(MSA). When used properly, HSA plans can be very economical
alternatives to traditional Florida group insurance plans
Florida HSA (Health Savings Accounts) plans will become
available as of January 1, 2004. The Medical Savings Accounts
will no longer be sold at that time. HSA plans are available
to just about everyone. You do not have to be self-employed.
Thus far, there are no specific group HSA plans available
in Florida. However, this will probably change in the not
too distant future. In the meantime, we can offer a single
list billed, individual HSA plans.
Q. Are these currently group insurance
plans or individual plans?
A. They are individuals plans and not guaranteed
issue group products.
Q. For a self employed individuals how
can these plans help me save money?
A. Let me offer a simple scenario with
some actual numbers.
I am using a family of four with the parent ages of 45
and 40 and two kids.
Deductible: $ 5,150
Monthly Cost of Insurance $300.90
Contribution to the Health Savings Account $ 429.16
Total Monthly Cost $ 730.06
Now watch this, its really beautiful. We will use a 28%
tax bracket for this illustration.
Tax Deduction for Insurance (Insurance Rate x 100% x 28%)
Tax Deduction for Savings Deposit (Savings Deposit x 28%)
Total Tax Savings $ 204.42
Cost After Tax Savings $ 525.64
But remember, the $429.16 is your money. It is sitting
in an interest bearing account in your name. You never gave
it to the insurance company. So subtract that amount out.
The Net Monthly Cost of Insurance after Taxes $ 96.48
With a Health Savings Deposit of $ 5,150.00 at the end of
Q. How can I use a Florida HSA plans with
my small group?
A. You have to keep in mind that these
plans are medically underwritten. So, the group and any
dependents need to be relatively healthy. If that is the
case, you offer the HSA plan in conjunction with a medical
allowance that you deposit in their savings accounts. You
get the deduction for the HSA contribution and they pay
for their own health insurance.
For the individual these Florida HSA plans can dramatically
lower your health insurance costs. Rather than spend a small
fortune on low deductibles and copay, you are having Uncle
Sam supplement your medical costs. Call us for specific
quotes and answers to any questions you might have about
Please call us at 800-986-4786 for
more information about Florida Health Savings Accounts.