All articles tagged with #high deductible health plans
A Mayo Clinic-led study in JAMA Network Open found cancer patients on high-deductible health plans have significantly higher mortality than those on standard plans (46% higher all-cause, 34% higher cancer-specific). With ACA tax credits expired, premiums surged, pushing more people toward HDHPs and potentially delaying necessary care, which could worsen outcomes for cancer patients.
Millennial millionaires are taking advantage of the triple tax benefits offered by Health Savings Accounts (HSAs) by maxing out their contributions and letting the funds grow tax-free over time. HSAs allow individuals to invest pretax dollars for health costs, with contributions and earnings growing tax-free. While designed for high-deductible health plans, financially savvy individuals are using HSAs to enhance their retirement savings. By saving receipts for health-related expenses, these millionaires plan to reimburse themselves from their HSAs in the future, allowing the funds to compound and grow.
Health savings accounts (HSAs) offer significant tax advantages, but most account holders fail to maximize their benefits by not investing their assets. Only 19% of HSA participants invest their funds, while the rest treat their accounts like bank accounts. Financial experts recommend using HSAs as retirement accounts to cover future health costs. HSAs have a triple tax advantage, with tax-free contributions, investment growth, and withdrawals for eligible medical expenses. The optimal strategy is to hold cash equal to the annual insurance deductible in the account and invest the remainder. However, many people cannot afford to pay current medical bills out of pocket, leading them to continually draw from their HSAs instead of investing. Additionally, about 40% of employers do not offer HSA investment options, but employees can open HSA accounts elsewhere to access investments.