HSAs are tax-exempt accounts that help employees save money for eligible medical expenses. In order to qualify for an HSA, the policyholder must be enrolled in an HSA-qualified high deductible health plan, and must not be covered by other non-HDHP health insurance or Medicare, and cannot be claimed as a dependent on someone else’s tax return.
HSA contribution limits:
Individuals (self-only coverage) - $3,250 (up $150 from 2012)
Family coverage - $6,450 (up $200 from 2012)
HDHP minimum required deductibles:
$1,250 for self-only coverage
$2,500 for family coverage
(Out-of-pocket expenses include deductibles, co-payments, and other amounts, but not premiums)
• $6,250 for self-only coverage
• $12,500 for family coverage
Under guidelines implemented in the Patient Protection and Affordable Care Act, over-the-counter drugs may only be reimbursed if they have a prescription. If a policyholder uses an HSA to pay for items or services that aren't qualified medical expenses, the tax penalty is 20 percent of the HSA distribution.
Travel costs associated with access to lower-priced medically necessary healthcare are still permitted as an eligible expense, which is promising for domestic and international health travel patients with fully-funded HSAs. Also permitted under the eligible expenses are medical tests that personalize health care and prevention by testing for effectiveness of certain expensive medications to determine in advance if they will have any effect on disease progression such as diabetes, high cholesterol and other chronic illness. Annual medical and dental checkup packages are also eligible.
MHI Benefits Group offers domestic and international health travel logistics coordination to help HSA holders save money on all healthcare services. Through Mercury Health Travel, MHI's exclusive domestic medical travel provider network, more than 4500 acute care full service hospitals and over 9000 outpatient surgery centers are available at great pre-negotiated packaged discount prices. The network boasts over 750,000 physicians in the USA, another 65,000 outpatient diagnostic services and testing locations and a pharmacy discount network with 65,000 local chain and private pharmacies are all accessible with one call for end-to-end arrangements.
For more information contact your professional financial planner or call MHI Benefits Group today at: 800.727.4160