Self-employed individuals who must purchase their own health insurance coverage are rushing to sign up for HSA-qualified plans before December 31, in order to lock in a $5,650 tax write-off. According to leading online broker HSA for America, applications are up 50%.
Fort Collins, CO (PRWEB) November 14, 2007 -- The appeal of an additional $5,650 tax write-off is spurring thousands of individuals to switch to a health insurance plan that works with a Health Savings Account (HSA), before the end of the year.
"We're getting a tremendous number of inquiries from people who are interested in the tax benefits," said HSA for America President Wiley Long. "A family with a qualifying high-deductible health plan can put up to $5,650 into their HSA, but their health insurance must be effective no later than December 31 for them to qualify for the 2007 tax deduction."
Health Savings Accounts are special tax-favored savings accounts that anyone with a qualified high-deductible health insurance plan can open and fund. Any money put in the account is tax deductible, and can be used tax-free to pay for future medical expenses. If the money is not withdrawn, it continues to grow tax-deferred like an IRA. Health Savings Accounts first became available in January 2004, and today nearly eight million people are covered by an HSA-qualified health insurance plan.
Long said that in addition to the immediate tax benefits, there are many other reasons a record number of people have signed up for HSA plans. "These plans are about 40% less expensive than conventional co-pay plans. Many people also like the fact that they can use money from their HSA to pay for alternative care like acupuncture or homeopathy. And finally, many people consider their HSA to be a second retirement account. Some people will have over $1 million in their account by the time they retire."
According to Fidelity Investments, the average couple retiring in 2007 will need over $200,000 to cover medical expenses, not even counting dental, over-the-counter medications, or long-term care. "Those who have an HSA could have thousands of additional dollars available to them to cover these expenses in their retirement years," added Long.
To help people who are buying their own health insurance understand these changes, HSA for America is hosting weekly HSA teleseminars throughout the rest of 2007. "If someone can get their coverage in place before December 31, they can reduce the amount they pay Uncle Sam on April 15 by $1,800 or more," said Long. "But they really do need to apply soon."
HSA for America offers instant quotes and online applications for HSA-qualified health insurance plans on their website. They will also help new customers choose a bank for their HSA, and set up their account.
About HSA for America
HSA for America is the nation's leading independent health insurance firm specializing in individual and family coverage that works with a Health Savings Account. Through our comprehensive website we offer complete information on Health Savings Accounts and qualifying health insurance plans. We offer instant quotes, online health insurance applications, and access to several banks that can act as an HSA administrator for your account. Visit http://www.health--savings--accounts.com for complete information.
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