Traveling down the road of life you sometimes hit a pothole. If you or a family member become sick or injured, it’s always good to be prepared for extra medical expenses even if health insurance covers you. A Southland Health Savings Account is a tax-free* way to save and pay for current and future medical expenses. Plus, if you qualify, you can earn interest on your savings.
What is a Qualified High Deductible Health Plan?
A Qualified High Deductible Health Plan is a health insurance plan that has an annual deductible of at least the following:
- For single employee coverage, the deductible must not be less than $1,250 (2014 tax year), with annual out-of-pocket expenses not exceeding $6,350 (2014 tax year) or
- For family coverage, the deductible must not be less than $2,500 (2014 tax year), with annual out-of-pocket expenses not exceeding $12,700 (2014 tax year)
- Out-of-pocket expenses include deductibles, co-payments, and other amounts the participant must pay for covered benefits, but do not include premiums. High deductible plans can have first dollar coverage (no deductible) for preventive care and higher out-of pocket expenses (co-pays and co-insurance) for non-network services.
*Consult a tax-advisor regarding your eligibility for a tax-free account.