Benefits and Advantages of Health Savings Accounts
1.The individual controls every aspect of the savings account like how much to periodically withdraw for medical expenses and how much to invest at a particular time.
2.Unlike medical insurance premiums if not paid can lapse the policy and lose the insured amount, this is not the case with a health savings account as this amount accumulated in the account can always be used over a period of time as per the individuals convenience.
3.Health savings accounts can be managed more efficiently and helps the indivisual to invest more wisely in the scheme.
4.There is no risk of losing the unspent amount after deducting for medical expenses,and the remaining amount is automatically rolled over till it can be used next.
5.In the event of the account holder transferring residence or shifting to a new job the account is not affected in the least and can be easily moved for future coverage.
6.The annual premiums that most medical insurance companies charge are much more than the traditional amount invested at leisure by the HSA holder,and can be deposited into the account as per the discretion of the account holder. There is no fixed amount that has to be paid to avoid a penalty fee.
7.Especially advantageous for post retirement account holders as a medical insurance policy post retirement can be extremely expensive
8.Helps in Medicare coverage and expenses.
9.Health Savings Accounts are the most favourable for Federal tax investments and deducations.
10.Investment in an HSA is secure and wont be lost in the case of unemployment and if the employer contribution to the fund is withdrawn.