Why Atlanta Insurance Customers Shouldn’t Be Intimidated by Health Savings Accounts

It might be the new Halloween mantra: IRAs, 401ks and HSAs, oh my!

As if dealing with debt and house payments weren't enough, Americans must also consider ways to invest for the future - including Health Savings Accounts, a new type of investment that can cover medical expenses as well as retirement. And though HSAs can be a little confusing, they have the ability to make your life - and finances - easier, say Atlanta bankruptcy attorneys.

The beauty of HSAs is their versatility. We all know we should be saving money in case of emergencies, including medical ones. HSAs reward you for doing just that by making contributions - and withdrawals - for medical-related expenses tax-free. HSA insurance plans also come with lower premiums, since having your own medical funds makes you less of a risk to insurance companies. But it's not just a savings method for health; after retirement, you can opt to withdraw the funds for whatever you want, though you will have to pay taxes. But here's the catch: HSAs also come with higher deductibles, the annual amount your insurance company expects you to pay before they begin covering costs.

Ultimately, your degree of benefit from an HSA depends on your individual situation. Are you relatively young and healthy? Statistically, you'll require less medical care - which means you'll benefit from the lower premiums without racking up much towards your deductible. But you'd best discipline yourself to contribute to your health savings account. Remember, if something unexpected comes up, you'll be footing everything until you reach that deductible, which can be up to (though often less than) $5,950 for individuals. On the other hand, if you know you'll probably exceed the deductible (let's say you have a serious medical condition) an HSA can actually be a good thing. You won't have to pay a dime over the deductible - unlike a traditional plan, which would likely still require co-pays for doctor visits and prescriptions.

We all know health care is expensive, but it should be affordable. If you're not sure which plan is right for you, have your employer or insurance agent help you add up your past year's health costs so you can make an informed choice. And if you just can't afford your insurance because of past medical bills, credit card debt, IRS debt or other money troubles? Bankruptcy might be able to help. Not only was bankruptcy created as a Constitutional right, but it also happens to be one of the most effective ways to make lowering large debts possible. Let our Atlanta bankruptcy attorneys find a plan that's right for you with a free personalized debt analysis. Isn't it time you took care of your financial health?

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