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Writer's pictureThe Marsh Team

Health Care Costs Got You Down? Here’s How to Save

Updated: Dec 20, 2021


I’ve noticed a trend in my practice – people not yet enrolled in Medicare are moving to high deductible health insurance plans to offset the ever-increasing costs of monthly insurance premiums. Whether people are self-employed, or want to retire early and have to bear the cost of health insurance before age 65, or just don’t have generous employer-paid health insurance anymore, the need to manage health care costs is a high priority. But few people know of a terrific, triple tax-advantaged opportunity to pay for out-of-pocket health costs. What is it, you ask? It’s a Health Savings Account (HSA).


Whether you obtain your health insurance through the healthcare exchange, or through your employer, the 2016 rules simply require that the qualified high deductible health insurance plan has:

  1. a minimum annual deductible of $1,300 for an individual or $2,600 for a family; and

  2. a maximum out-of-pocket of $6,550 for an individual or $13,100 for a family.

If your plan meets those criteria, you are on your way to enjoying many HSA advantages, including:

  • Tax-deductible: Contributions to the HSA are 100% deductible up to $3,350 for an individual ($4,350 if over age 55) or $6,750 for a family ($7,750 if over age 55)

  • Tax-free: Withdrawals to pay qualified medical expenses, including dental and vision, are never taxed.

  • Tax-deferred: Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.

  • HSA money is yours to keep: Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year; it continues to grow tax-deferred.

Best of all, if you meet the requirements, you have until April 18th to make a fully tax-deductible contribution to an HSA for 2015 taxes. Call us today to see if you qualify.


Join us at our next Lunch ‘n Learn to learn more, including:

  • Easy steps to set up an HSA account with your local bank if your employer doesn’t offer one.

  • The broad array of qualified medical expenses that can be paid with tax-free dollars.

  • The limitations of an HSA once you enroll in Medicare and how to use an HSA if you are over 65 but still working.

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