HSA (Health Savings Account) Plans for Rhode Island
Health Savings Accounts (HSA) are finally here for Rhode Island small business owners and they offer as much as 40% insurance premium savings over co-pay plans (where co-pays go on and on forever) and they provide 100% coverage (which co-pay plans will NEVER do) after the insured person's out of pocket responsibility is met. The bottom line is you get FAR BETTER PROTECTION for MUCH LESS COST!
With an HSA Plan, a personal employee owned bank or investment account complements the group's federally qualified high deductible insurance plan (HDHP).
Either the employer or the employee or both, can make tax deductible contributions (similar to an IRA contributions) into the HSA account up to 100% of the deductible each year (or to a maximum this year of $2700 for an individual or $5400 for a family for 2006). Deductibles beginning as low as $1100 for an individual and $2200 for a family are available.
Proceeds grow and compound tax FREE while they remain in the account.
Medical expenses and prescriptions drugs are covered 100% after the deductible (or total out of pocket responsibility) is met.
Withdrawals from the HSA account for medical and related expenses by the employee are tax free. Unused HSA funds can be used for living expenses at retirement paying income taxes on proceeds based on the account holders income tax rate at that time.
When you consider that the typical Rhode Island business is overpaying on group health insurance premiums by sometimes more than $10,000 per employee per year, for benefits that go unused year after year, HSA plans enable you to keep that money and instead of sending it to an insurance company and never getting it back, put it aside in a Health Savings Account and watch it accumulate - tax free!
Rhode Island business owners should take a personal interest in the huge money saving opportunity or risk missing out if you delegate it to an employee who isn't able to see the overall big picture and clear advantages of HDHP's used with HSAs your bottom line suffers.
In many cases, first year premium savings generated from the much lower cost HSA qualified insurance plans are enough to fully fund the employees HSA account with money to spare! Once the account is fully funded, the employee then has the equivalent of 100% coverage!
With an HSA you can say "Good bye" to Unlimited Co-pays and rediculous health insurance costs! Say "HELLO" to 100% coverage and affordable health insurance premiums which is sometimes even as little as 50% of the cost of a typical $10 co-pay plan -- for better worst case scenario protection!. Say "Hello" to control over healthcare costs and say HELLO to protection against rising health insurance premiums because as you begin to be able to over fund your HSA account, each year taking a nice tax deduction , you become less dependent on the insurance company. When your insurance rates go up, you can simply raise your deductible to keep your premiums from rising as much..
Ask us for details about about the most suitable United Healthcare group HSA plan for your company.
Watch a free audio-visual on Health Savings Accounts brought to you by Assurant, formerly Fortis and the parent company of John Alden. Unfortunately their HSA plans are only available in CT and MA(and will continue to be unavailable in Rhode Island until our state legislature improves the regulatory environment in the state with reforms sponsored last year by Senator Marc Cote which, if last year had been passed would have brought back at least two carriers to Rhode Island last spring, and lowered health insurance costs for many of us (not to mention increasing our health insurance options).For now we must make due with the audio visual.The concepts shown in the presentation apply to all HSA plans.