Financial Services Indianapolis

Statistics show that more than 60% of bankruptcies are linked to medical bills.

I have some friends who recently filed bankruptcy due to medical bills for their 6yr old daughter. Their daughter had been receiving treatment from a children’s hospital that would not accept their insurance. They had accumulated over $40,000 in debt to the hospital. The hospital told them they would not continue to treat their daughter until the bills were paid in full. As a result they were forced to max out every credit card and line of credit they had. The debt became too much to bear. Had they been on a High Deductible Health Plan (HDHP), with a Health Savings Account, it might have been able to help them avoid bankruptcy.

 They were married 8 years ago. If they had been on a HDHP, family plan and put away $5,000.00 each year into the plan, they would have had plenty to pay for their daughters medical bills. The two of them are young and healthy. The only medical bills they have had to pay over the past eight years are on the birth of their daughter and general visits. If you assume a 3% rate of return and $5,000 deposited into the account each year they would have had between $40,000 and $42,000 in their HSA at the time their daughter became ill (this includes a deduction for the birth of their daughter and office visits). They would not have maxed out their credit and been forced into bankruptcy.

I think a lot of people forget if you don’t use the money in your HSA it is there the next year, and the next year, and the next. It will be there when you need it. What a great way to save for the unexpected.

I have found many people are not sure if they are in a High Deductible Health Plan. They know what their deductible is and it seems high. So are they eligible for a Heath Savings Account?

Just follow the questions below to see if you are eligible for a Health Savings Account.

Are you on Medicare?

If YES then you can not contribute to a Heath Savings Account

     NO, then…

Are you covered under VA benefits?

If Yes then you can not contribute to a Health Savings Account for 3 months after receiving benefits.

    NO, then …

Are you covered by a Heath Reimbursement Arrangement (HRA), Flexible Spending Account (FSA) or a Health Cafeteria Plan?

If Yes, you are, most likely, not able to contribute to a Health Savings Account. However, check with your employer to see if they are “properly coordinated with the HDHP”. If they have no clue what you are talking about you are not able to contribute to a Health Savings Account.

If NO, then…

Are you the only one insured under your health insurance?

If YES, Is your deductible $1,150 or greater?

            If YES, You are eligible to contribute to a Health Savings Account.

            If NO, You are not eligible to contribute to a Health Savings Account.

If NO, Is your deductible $2,300 or greater?

            If YES, You are eligible to contribute to a Health Savings Account.

            If NO, You are not eligible to contribute to a Health Savings Account.

10        Convenient Access – HSA Visa card, On-line Bill payer, Checks

9          Options – HSA savings, HSA checking, HSA Interest Checking, HSA Money

      Market, HSA Premium Money Market, HSA Share Certificate

8          Valued Relationships, Trusted Solutions

7          We are all about our Members

6          You are in control – You own and control the money in your HSA.

5          Easy to open - On-line, in person, e-mail, or Call me, I will come to you.

4          Peace of Mind – We strive and promise to maintain the privacy of you accounts.

3          Can you say “Triple Tax Savings” – Tax deductions when you contribute, Tax-

                        Free earnings through investment, and Tax-Free withdrawals for qualified

 medical expenses.

2          Location, Location, Location – With shared branching there are over 194

                        branches in Indiana and 3,711 Nationwide

1          Who doesn’t like FREE? – No set-up cost, No monthly or per item fees, No cost

                        to receive statements. It is truly free.

With the economy in the state it is in I have seen many more companies turning to High Deductible Health Plans (HDHP). With companies trying to cut costs, benefits are one of the first items to be sacrificed. I predict in the future even more will convert to the HDHP.  In an effort to keep cost down, have you found many cost effective Heath Savings Accounts in Indianapolis? 

Here at Finance Center Federal Credit Union it is our goal to provide the highest possible service attainable in our market place. Our HSA’s provide the best return possible for each individual. There are no monthly, yearly or per item fees. My desire is to work with you in providing you or your clients a place to have their health insurance funds where they are not diminished by application fees, service charges or fees of any kind. There is no cost associated with our offer. We understand that with the rising costs of employee benefits, an opportunity to enhance current offerings can be valuable.