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Adult Children and HSA’s

Health Care Reform requires health plans to cover adult children to age 26. For plan years effective after 9/23/10, plans that cover dependent children must also provide coverage for adult children through age 26. However, this new rule does not allow out of pocket expenses for these adult children to be reimbursed out of HSAs. Check out more blogs about HSA’s.

This brings up a number of questions for HSAs. These talking points should help you when discussing the impact to HSAs on your family. Review the rules for determining dependent status.

Tax Dependent v. Non-Tax Dependent Child

HSA Case Studies

To Learn more about HSA plans review the following HSA Case Studies.

10 Reasons to Love an HSA

Many consumers are eager to learn more about health savings accounts, which continue to generate buzz as America’s newest option in health care coverage. The general assumption is that a financial tool with this much potential must be complex and difficult to understand. However, HSAs are simple to outline, and can be broken down into a list of ten basic points for consumers to easily digest.

1.     HSAs fund health care needs

HSA – Deducting an ipad for your special needs child’s education?

Steven Arreola, senior broker at Filice Insurance, updates our blogs on HSA’s and gets specific about education for kids with special needs.  Medical expenses that are deductible through a Health Savings Account follow the guidelines established for the medical and dental expense deduction on your tax return under internal revenue code section 502.

That section defines medical expenses as the costs of diagnosis, cure, mitigation, treatment or prevention of disease, and the costs for treatments affecting any part or function of the body.  These expenses include the cost of equipment, and the costs of special education.

Eligible HSA Expenses

Examples of eligible HSA expenses are listed here to help you use your new HSA account.

Qualified Medical Expenses ARE:
The Internal Revenue Service defines qualified medical care expenses as amounts paid for the diagnosis, cure, or treatment of a disease, and for treatments affecting any part or function of the body. The expenses must be primarily to alleviate a physical or mental defect or illness.

Is an HSA right for you?

So you have committed to getting an individual health insurance plan, you are beginning the challenging process of reviewing plan options, asking peers, and you hear about an HSA, maybe it is right for you. But, what is an HSA? A Health Savings Account (HSA) is a savings account that allows you to set aside money for health care tax-free, think of it as a Christmas Club for your health. You must have high deductible health insurance to open an HSA. Different from other benefit products, an HSA rolls over from year to year (there is no “use it or lose it”), interest is paid, money can be invested in mutual funds, and it is owned by you, individually.
An HSA has many distinct advantages:
-you pay less each month for high-deductible health insurance
-you receive tax advantages on multiple levels: pre-tax contributions to your HSA, tax-exempt interest and investment gains on your HSA, and tax-free withdrawals for qualified medical expenses
-you have complete control over your healthcare dollars, save or spend, it’s up to you
-your HSA is an account that you own and remains in place regardless of where you work or what company insures you
-there are a wide range of eligible medical expenses not typically covered by low deductible health insurance or other healthcare accounts
-your HAS contributions can be directed toward long-term investment vehicles, such as mutual funds, to maximize future value
Here are two great examples of an HSA in practice:
Mary is a single, self-employed, female living in Los Angeles. Her annual income is $60,000. She has an HSA and a high deductible insurance plan, her annual deductible is $3,000. Her monthly insurance premiums on the plan are $150, and she contributes $100 per month to her HSA. She uses the money in her HSA, tax-free, to pay for her contact lenses, as well as acupuncture.
The Barnes family, a family that includes a husband and wife and two children ages 3 and 6, has an annual income of $75,000, a $4,000 deductible and an HSA. They contribute $1,000 at the beginning of each year, and use the account to pay the cost of speech therapy for heir youngest child, tax free.
An HSA might be right for you, consider applying for one, in conjunction with your high deductible insurance plan.

Medicare Eligible. Can My Adult Child Stay On My Work Insurance?

Kelley-Jensen2Author:  Kelley Filice Jensen

I am 64 years old.  I still work and have my health insurance through my job, but I am thinking about enrolling in Medicare around my 65th birthday, regardless of whether I retire or not.  If I do that, can my child stay on my work’s insurance plan?   He is 23 years old, and a full time student with a part time job that does not offer health insurance.  I am worried about what will happen to him if I go elect Medicare coverage.

New Year Resolutions Can Last Beyond Valentine’s Day


Author: Kelley Filice Jensen

Monday, January 7, 2013 – the gym was crowded this morning, like it is every first Monday of every January for the fifteen years that I have been going to the gym.  The gym “regulars” tend to be very cynical about the January crowd, betting how long it will take to weed out the “new year’s resolution temps”.  And, indeed, it does seem that by Valentine’s Day the resolutions are over, the weight loss goals  have evaporated before any fat has had a chance to.  Sigh.  I refuse join my cynical gym mates, and I refuse to give up on people before they even get started.   If you are starting a new year’s resolution to lose weight and exercise, Welcome!  You can do it, there is no magic, just hard work.  Keep reminding yourself that, think of other hard work you have committed too that has led to accomplishment, and that reminder of your capabilities will keep you motivated long past the first Valentine’s Day cards.  Here are some other things to keep in mind:

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