Thursday, August 28, 2008
Can I pay my health insurance premium with funds from my HSA? -
No. You have to pay the premiums with after-tax dollars. However, because your deductible is high, your premiums are low. In addition, by paying your deductible out of your HSA account, your health-care dollar goes 50% further. That’s because your HSA dollars are sheltered from withholding taxes of 35% in federal income tax, and 7.65% in Federal Insurance Contributions Act (FICA) tax, and 9.3% in state income tax (California). For example, you would have to earn $200 in after-tax dollars to pay a $100 prescription drug deductible. That same deductible could cost only $100 from an HSA account. To find a qualified plan in your area, contact a health insurance broker. A broker works with several health insurers and can help figure out the best plan, company, rates and coverage. To find a broker, log on to a website like http://www.healthinsurancewiz.com and fill out a form requesting a free quote. Your information will be sent to a broker in your area who will contact you. no nope not as far as I know.Just your deductibles No. The only premium you can pay with tax-free money is for Long Term Care premiums. You can only use your HSA to pay health insurance premiums if you are collecting Federal or State unemployment benefits, or you have COBRA continuation coverage through a former employer.
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