HSAs just got even better
Just last week, as one of the final acts of the outgoing Republican congress, federal legislation was passed making Health Savings Accounts even more attractive. Earlier this year, MHPC wrote about how Health Savings Accounts are providing affordable, consumer-focused private health insurance here in Maine (with premiums 28-35% lower than traditional insurance). As the WSJ reports, consumers can now contribute even more to their HSAs, beginning in 2007.
Previously, consumers could only deposit into their HSA the amount of their deductible or $2,700 for an individual plan or $5,450 for a family plan, whichever was less. Now consumers can contribute the full amount, which rises to $2,850/$5,650 in 2007, as long as their deductible meets the minimum for an HSA plan – $1,100 for an individual or $2,200 for a family for 2007. Employers can also make a larger HSA contribution to employees earning less than $100,000 a year, making HSAs even more attractive to lower wage employees. Lastly, people can roll IRA funds over to an HSA one time tax-free.
All Maine insurers offer HSA plans, so ask your employer about setting up an HSA today or buy one directly from Anthem. Unfortunately, Anthem’s individual HSA product is very expensive, due to Maine’s costly insurance regulations, but that’s a subject for another blog.