General Information Concerning Health Savings Accounts (HSA)

HSAs are tax-advantaged savings accounts that can be used to pay for medical expenses incurred by individuals, their spouse or their dependents.
HSAs are open to everyone with a high deductible health insurance plan. The only limitation on the health plan is that the annual deductible must be at least $1,000 for individual coverage and at least $2,200 for family coverage. In the SC market most plans begin at $2000 individual and $4500 family deductibles.
Contributions to the HSA by an employer are not included in the individual's taxable income. Contributions by an individual are tax deductible. Total yearly contributions to an HSA can be as large as the individual's health insurance plan deductible, between $1,100 and $2,850 for self-coverage and $2,200 and $5,650 for family coverage (all amounts are for 2007).
The interest and investment earnings generated by the account are also not taxable while in the HSA. Amounts distributed are not taxable as long as they are used to pay for qualified medical expenses, such as prescription and over-the-counter drugs and long-term care services.
HSAs are portable, so an individual is not dependent on a particular employer to enjoy the advantages of having an HSA. Like an individual retirement account (IRA), the HSA is owned by the individual, not the employer. If the individual changes jobs, the HSA goes with the individual.
In addition, individuals over age 55 can make extra contributions to their accounts and still enjoy the same tax advantages. In 2007, an additional $800 can be added to the HSA. By 2009, an additional $1,000 can be added to the HSA.

American Benefit Services offers the following services to all clients for the administration of Health Savings Accounts:

Daily Check Reimbursement
Debit Card Access to Account
Quarterly Statements
Online Account Balance Access
No Transaction Fees
No Minimum Balance Required
Monthly Interest Payment (based on account balance)

Please call or email us with any questions regarding the HSA accounts.

With Carolina HSA^SM from Carolina Care Plan^®, Inc., your group has a new choice for health care coverage. Pair one of our Carolina HSA high-deductible health plans with a tax-deductible health savings account to cover current and future medical expenses. Click the logo above for more information.