Category: Health Insurance

250X250 SBT Brian Livesay San Diego

Brian Livesay San Diego Retirement Guardian |Tax Advantaged Health Savings Accounts

See My Who IsBrian Livesay San Diego Retirement Guardian says “Health Savings Accounts are a unique investment vehicle that if used correctly can add tax free funds to an individual’s finances.”

A Health Savings Account or HSA is a tax advantaged medical savings account. To be eligible for an HSA an individual or family must be enrolled in a High Deductible Health Plan (HDHP). A HDHP has a higher deductible than a traditional health plan and can be considered a catastrophic health plan. These plans are best for younger and healthy individuals with little annual medical requirements. The annual premiums are lower than a traditional health plan which allows an individual to fund the Health Savings Account.

Contributions to an HSA account can only be made while covered under a High Deductible Health Plan.

Once an individual is no longer covered the HAS account remains open and the funds in the account continue to grow tax free until the time of withdrawal. A HSA is very similar to an Individual Retirement Account (IRA) since the accounts are funded with pretax money and grow potentially tax free if the money is used on qualified medical expenses. If the money withdrawn from the account is not used for qualified medical expenses there is a 20% penalty on the withdrawal if taken before age 59 ½. Non-qualified medical expense withdrawals taken after 59 ½ like a Traditional IRA are taxed as ordinary income in the year of the withdrawal.

A unique feature of an HSA account is the ability to make withdrawals and use medical expenses from previous years while covered under the HDHP as qualifying medical expenses to avoid the 20% penalty for non-qualified medical expense withdrawals. As long as the individual has the receipts from the qualifying medical expense the expenses can be used in any year to make an allowable withdrawal from the HSA account. This allows an individual to pay for smaller medical cost in one year and let their money grow tax free inside the HSA then withdrawal money later after it has grown in value tax free using the past paid medical expenses as qualifying medical expenses at the time of withdrawal.

The IRS also allows a onetime transfer from an IRA account to fund a HSA account up to the annual maximum contribution limit for the year. Employers can also contribute to an individual’s HSA account and the money becomes immediately the account owners with no vesting.

A healthy individual with minimum medical needs can potentially grow substantial funds inside the HSA account and later use the funds like a Traditional IRA or as tax free funds using qualified medical expenses at the time of withdrawal.

For more information visit Brian Livesay’s Who Is Page here in the Journal

Or see the article in Small Business Trendsetters

Or the article in CNN iReport ” Statement of Cash Flows: Cash is King”

Brian Livesay The Retirement Guardian
You may contact him at his office
Livesay Capital Solutions Inc.
1761 Hotel Circle S. Ste 360
San Diego, CA 92108
Call at 866-726-0725 / 619-281-8377
Or visit his Web Site

SBT Marc Manor Healthcare Insurance Specialist

Marc Manor San Diego Independent Healthcare Insurance Agent | Right Decisions and How to Make Them

Marc Manor San Diego Independent Healthcare Insurance Agent says “There are many myths and misconceptions about Health Insurance and Financial Protection in the minds of the general public. They are easily dispelled by doing a little research and asking the right questions”

There are many people who think that agents are trying to sell them an insurance policy that is best for the agent and not necessarily the best for them and their family. While a there has been numerous instances of unscrupulous practices by some agents, the majority of agents are honest, hardworking people just like their clients.

Some important things you should look for when you need a Health Insurance Professional are;

• Is the agent licensed? Additionally, in California, agents are to display their license information on all their advertising (business cards, web sites etc. License information in California can be verified at$.startup
• Is the agent appointed with the company? This information is also available on the aforementioned website after you locate the agents name and click on the license number (frequently insurance products are underwritten by a parent or associated company of a different name. The name should be easily located and verifiable).
• Are there any references, testimonials, or complaints associated with the agent. Does the agent have any advanced certifications such as Consumer Directed Health Care (CDHC) Certification?

In choosing the right Health Insurance Professional you should prepare a list of questions.

What if I can’t afford the coverage, can I cancel?

Healthcare coverage should only be cancelled during the open enrollment period. This is because in order to meet the requirement to obtain replacement coverage, certain requirements must be met. These requirements are referred to a “special” or “qualified” enrollment. You will not qualify for a special enrollment period if: you terminate coverage voluntarily, your coverage is terminated due to fraud, you fail to pay a premium, or you lose coverage for plans like Short Term Medical or Fixed-Benefit Insurance. A qualified agent will help fit a plan that is affordable so cancellation should not be required.

What if I am healthy and I feel I don’t need health insurance?

It’s true that a healthy person may think they not use insurance; however, no one is immune to sickness and/or injury and sickness and/or injury can lead to costly medical bills.

Will I be able to keep my doctor/physician?

Healthcare insurance typically is structured as a “network” of providers. The two most common types are Health Maintenance Organizations (HMO) and Preferred Provider Organizations (PPO). Typically the HMO is more structured and requires the insured to remain within the network. PPOs on the other hand, have a little more flexibility in that; the insured can usually go outside the network but at a higher cost. It is always best to ask the agent when choosing a plan, to look up any preferred physicians prior to purchasing a plan. Supplemental products such as accident and cancer coverage typically have no network restrictions.

May I enroll in a Health Savings Account (HSA) if I choose this plan?

HSA’s can be very helpful in offsetting the costs associated with deductibles and co-insurance. HASs allow the insured to set aside tax-advantaged dollars that can be used to cover out-of-pocket medical expenses.

How much supplemental coverage can I afford?

Most people can afford the equivalent of 1-2 hours of their wages per week. The 1-2 hour formula can serve as a starting point for most individuals/families. After that, it becomes a matter of compiling the current liabilities a person should consider. Each person or family has unique situations. Many times an objective opinion on who best to manage a family budget is a good idea.

How do I file claims?

This question does not come up as often as it should because most people think as long as they have an insurance card, their claim will be paid directly from the insurance company to the health care provider. This is generally true for major medical insurance; however, supplemental and indemnity insurance plans sometimes need to be filed separately by the insured. Some agents will assist in the claims process, other companies have claims personnel that can be reached via telephone at the home office. Be sure that it is clear how the claims are paid and who to contact if the need arises. A time of crisis is usually not the time to be looking through the file cabinet for contact numbers. Keep contact phone numbers along with policy numbers accessible to expedite the claims process.

You can see more about Marc Manor at Small Business Trendsetters
On CNN iReport

On his Web Site
Or by calling 619-798-8240