There are many ways that we can pay for our healthcare costs, however there is only one way that we can with certainty minimize the cost and set the absolute amount that we will pay, today and in the future.
Here are a few tips and tricks to get the most out of your healthcare dollars and provide you with the greatest degree of choice and the chance to self select the contribution amount, the chance to make your defined contribution.
Today, the various ways that you receive your healthcare, beyond government sponsored plans are as follows; -You have a company plan, either you are an employee or a dependent.
Your plan covers a lot of what you want, but you still end up having to pay out of pocket for exempt items, and amounts beyond the limits.
-You are self employed, either you have an insured plan that you pay yourself or, you are like most, you just pay for your services out of pocket.
If you have a plan it only covers a portion of what you need, the rest you pay for out of pocket in after tax dollars.
Either way, there is a much better way, Here are a few ways that the The Health Spending Account (HSA) can help you.
1.
The HSA acts like an RRSP for your health and saves you 35% on the cost of your healthcare.
It gives you tax free dollars for your family's healthcare.
Your business provides you with the HSA, you receive it as a tax free employee benefit, The business deducts the contribution.
2.
The business determines how much to put in the HSA, it can fund the account with what you need, giving it a defined contribution.
you receive these dollars to pay your health costs.
Once contributed the dollars spending is at the sole discretion of the employee.
3.
The dollars are in the HSA for the employee to spend it on what they need and want; orthodontic, all dental care, eye care, laser eye surgery, glasses and contacts, psychologist, drugs, massage, physiotherapy, special needs for children, dependent parents, naturopath, nursing and more.
In effect the services offered by licensed medical practitioners typically qualify as eligible expenditures.
4.
Unspent dollars carry forward for your spending next year.
You don't loose what you don't spend.
Many employees save up over three years to pay for orthodontic services, that is their choice.
5.
It is easy to set up, there are no set up costs and your Health Spending Account is even easier to administer.
The business contributes to your account, you submit your medical receipts to the administrator, funds from your account are electronically reimbursed directly to your account.
6.
Paying for your health costs this way will save you money each year, the savings over many years are significant.
For example, in order to pay for your treatment of $5000, one needs to earn $9000 to have the $5000 left over after tax; using the Health Spending Account the company deposits $5600, $600 pays for the fees and tax.
By opening the HSA you save $3400.
Imagine these savings over 10 years.
The good news is that there are health spending accounts that can be set up to meet your families' health needs.
Make a defined contribution to this account, use it to pay your costs and deduct these costs as a legitimate business expense.
Don't be fooled by fancy ads and false promises that claim to look after your needs.
Take your time to understand your needs, take control, define your contribution amount and choose how and where you will spend your money.
The health spending account (HSA) is the right tool for the job.