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Flexible Benefit Plans When it comes to health care, most people think of large bureaucratic machines that make all the decisions with little consideration for people's needs. In fact, the words "flexible benefit plans" may seem like somewhat of an oxymoron for many people. In truth, there are now a growing number of health care options that actually do provide more flexibility than ever before. HSAs: Flexible Benefit Plans HSAs, or health savings accounts, allow individuals to place pre-tax dollars into a savings account for use on future medical expenses. The total amount to be saved is declared at the beginning of the year, but payments into the account are divided by the number of pay periods per year. Nevertheless, the totality of the money in the account is available immediately. The only requirement to qualify for an HSA is the purchase of a high deductible health plan. The lowest this deductible can be is $1,050 for individuals and $2,100 for families in 2006 ($1,100 for individuals and $2,200 for families in 2007). In most cases, individuals split what they used to spend on health insurance, putting part of it into the HDHP and the rest into the HSA. Armed with a take care debit card that draws directly from the account, eligible medical expenses can be paid for immediately. This gives patients the power to decide how they want to use their money. An extensive number of procedures and medications can be paid for with an HSA and any money left over at the end of the fiscal year is simply rolled over for future medical needs. |
Additional Topics Consumer-Directed Health Plans Consumer-Driven Health Accounts Dependent Care Flexible Spending Accounts Flexible Health Spending Accounts Flexible Medical Expense Accounts Health Care Flexible Spending Accounts Health Reimbursement Arrangements IRS Section 125 Cafeteria Plans Medical Expenses and Income Tax Plan for Medical that Health Insurance Doesn't Cover Save 25% to 40% on Health Expenses Save on Co-Pays and Over-the-Counter Medications Save on LASIK and Orthodontic Costs Section 125 Plan Administration |
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