Toll Free 800.831.3587

The Exchange

Offering the latest news and leading insight.
Why a HSA? | Robert Bumpas

EXPLAINING THE HSA
Health savings accounts or HSAs were created to accompany high deductible health care plans (HDHP). Consumers with traditional insurance plans and low deductibles were accustomed to paying their co-pay and not worrying much about the total cost of the medical service or pharmaceutical purchase. High deductible health care plans have since made the consumer more cost conscience with how they approach their medical expenses. Health savings accounts were then created to help consumers save money to pay for these higher up-front costs that many were not accustomed to with traditional plans. Participating in a qualifying HDHP is a requirement for HSA eligibility.

HOW HDHP/HSA PLANS WORK
The HDHP/HSA plan differs from traditional plans in that the consumer must shoulder all of the up-front deductible costs for medical and pharmaceutical care. Once the higher deductible is met, the plans generally pay between 80% and 100% of the cost. The HSA is the funding mechanism that assists the consumer in building the liquid funds to pay the cost needed to meet the deductible. If the funds in the HSA are not used in the current year they can roll over to the next year and continue to accumulate for future medical expenses. There are tax incentives for consumers to contribute to the HSA. Contributions to the account may be tax deductible and the withdrawals from the account are not taxed when used for qualifying medical expenses. You should always consult your own tax advisor for specific details. In many cases an employer may sponsor a HDHP and help with the funding of the HSA account for the employee. Click here to read more about HSAs and small business owners.

IMPACT OF HDHP/HSA PLANS ON CONSUMER BEHAVIOR
Since the consumer must meet a higher deductible each year, generally they are more likely to “shop” for the most economical care. They will use a clinic rather than an emergency room when possible; request generic, lower cost drugs when available; and inquire about costs prior to initiating certain medical services. Premiums in the HDHP are also lower than traditional plans which also may help the consumer add more dollars to the HSA.

For more information about our health savings account, please click here or call one of our HSA representatives at 800.714.0165.

You can also view a recent interview about HSAs here.

Robert Bumpas

Meet With Us

We are ready to discuss your financial needs. Scheduling a time to meet with us is simple, just click here.

©2014 Delta Trust & Bank | Privacy & Security

This blog does not necessarily reflect the opinion of Delta Trust & Bank or any subsidiaries. They are the opinion of the author.

For bank products or bank specific posts:

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category

For any posts or products related to Delta Trust Investments, Inc., Delta Trust Insurance or the trust department:

Not Insured by FDIC or any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate.

Any customer who should happen to be dissatisfied with the service provided by Delta Trust Investments, Inc., is invited to write to:

James Alger, President, Delta Trust Investments, Inc. | P.O. Box 17607 | Little Rock, AR 72222 | 501-907-2297 or 1-877-349-9333, or Email James Alger.

Delta Trust Investments Inc. is a member of FINRA* and SIPC*

*By clicking on 3rd party links you will be leaving the Delta Trust Investments Inc website.

Equal Housing Lender Member FDIC

You are leaving delta-trust.com.

Close

You are leaving the Delta Trust Website. Do you wish to continue?

Meet With Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×

Contact Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×