The cost of health care has reached such high levels that you could actually go bankrupt if you get sick and do not have enough health coverage. Yet according to a Gallup poll, 26% of Texans cross their fingers, hope for the best, and go without Texas health insurance plans. Whether you are uninsured or underinsured, you do have options available to you that can help you manage the cost of your medical care. One of those options is to start either a health savings account or a flex spending account that will help you set aside funds to be used for medical expenses.
A health savings account (HSA) and flexible saving account (FSA) are two financial instruments that are used in conjunction with qualified Texas health insurance plans to assist in paying for health care costs. Both of these accounts offer tax advantages for investing money into them but they are handled differently. An FSA is probably the medical saving account that people are most familiar with. These are set up through an employer and are funded with pre-tax dollars so you save money on your income taxes. Funds in an FSA account can be used for medical care, child or adult day care, and adoption assistance.
The major disadvantage to having an FSA account is that all of the money must be used by the end of the year or it is forfeited. On the other hand, money put into a health saving account (HSA) rolls over to the next year. An HSA is also a medical savings account that is setup through an employer or an individual can open one provided he has a qualified HSA compatiable plan. You can contribute up to $3,050 per individual and $6,150 per family every year. People over 55 and contribute an additional $1,000 to catch up their savings. The major disadvantage to this type of account is that only patients who have high deductible health plans can enroll. These Texas health insurance plans require a high deductible to be paid before insurance benefits will kick in.
Which type of account you get will depend on the type of Texas health insurance plans you want to enroll in as well as your health goals. If you want to stick with a traditional medical plan then the FSA is what you would select. However, if a high deductible plan that features low premiums is what you prefer then the HSA would work. It is best to talk to a knowledgeable health insurance agent who can help you make the right choice.