Health Savings Accounts

The Affordable Care Act (ACA) has had an effect on hospitals, physicians, employers, and even you.  In some cases, you might have seen your health coverage changed and some benefits added while others reduced.  In other cases, you might see your tax burden changed as a result of new rules and regulations.

Health savings accounts (HSA) are not new.  They are tax-free or tax-adjusted medical savings accounts that are not affected by federal income tax when you make your deposit.  As a result, the health care funds spent out of these accounts are done with “pre-tax” dollars.  The main drawback is that whatever funds are left unused do not carry over and are essentially lost at the end of the year.  So it pays to plan wisely before setting up an HSA.

There are many ways to spend your HSA dollars including hospital and physician office co-pays, prescription co-pays, durable medical goods such as braces and eyeglasses, and other health-related expenses.  Please talk with your accountant on exactly what services or products will qualify for spending use under your specific plan.

We at SimpleTherapy believe that health care can be delivered in a more efficient and cost-effective manner.  We provide exercise therapy programs to address the most self-limiting muscle and joint complaints.  You can even use your unused HSA dollars to design and create an exercise therapy program that is right for you!

http://www.treasury.gov/resource-center/faqs/taxes/pages/health-savings-accounts.aspx