Health Savings Accounts Can Make You Smile

By Author: suzon bishas
Total Articles: 1
Comment this article

When a dental emergency occurs, time can be of the essence costs are only
an afterthought. That is why consumers should consider tapping into the
benefits of a health savings account as a way to offset dental expenses.
Health savings accounts (HSA) were part of the Medicare Bill reforms
President Bush signed into law in 2003. According to the U.S. Treasury,
these unique accounts have been specifically "designed to help individuals
save for future qualified medical and retiree health expenses on a tax-free
basis." Since Bush first approved HSAs, the accounts have gained $8.6
billion in assets.

It is expected that more financial institutions will start offering more
varieties of health savings accounts as a reaction to the Affordable Care
Act that was passed into law March 3, 2010. Reuters reported that the HSA
banking niche could expect industry growth ranging from $50 billion to $100
billion. Since that time, nearly the niche has built over $8.6 billion in assets.

The original intent of health savings accounts were to help the 10 million
...
... Americans who have opted into high-deductible insurance plans save the
necessary money to cover the additional expenses. The money saved in the

account can also be used to offset the ever-rising costs of dental expenses.

Health savings accounts allow consumers to save up to $3,050 for
individuals, $6,150 for families and enjoy tax benefits (people over age 55
can make an additional $1,000 contribution annually). The money stored in
the account is tax deductible and the interest earned is tax-free. Plus, HSAs
typically have higher than average interest rate than traditional interest
bearing accounts.

Health savings accounts are only available to those who have high-
deductible insurance plans with high out-of-pocket maximum to qualify (the
2010 deductible limits are $1,200 for individuals or $2,400 for families). If
that qualification is met, the IRS will allow the money from HSA accounts to
be used for "preventive treatment includes the services of a dental hygienist
or dentist for such procedures as teeth cleaning, the application of sealants,
and fluoride treatments to prevent tooth decay. Treatment to alleviate
dental disease include services of a dentist for procedures such as X-rays,
fillings, braces, extractions, dentures, and other dental ailments." Cosmetic
dentistry such as tooth whitening is not considered to be an allowable
expense.