In previous articles I offered some suggestions on how to save money by being healthy. Maintaining a healthy lifestyle plays a big role in keeping your medical costs down. Regular exercise can reduce body fat, lower blood pressure, and help you to release stress. We all know the importance of eating a balanced diet, taking supplements, drinking purified water, breathing clean air, getting enough sleep, and teeth brushing. If you smoke, consider quitting.
Those who are in good health and have created a healthy lifestyle spend less money on medically-related expenses. Their primary interest in health insurance is protection against any expensive treatment for unexpected, undiagnosed major illness or serious injury. They do not need to see their doctor very often since they don’t have serious health conditions. Therefore, since the risk of frequent medical treatment is low, they can choose a high-deductible health plan, saving money through lower monthly premiums.
Did you know you can also save money by lowering your taxes at the same time? There are qualified HDHP’s (high-deductible health plans) that allow you to do both; offering you lower monthly premiums AND helping you to lower your taxable income! If you choose this type of health plan, you can open a Health Savings Account or HSA, and deposit funds to pay for medically-related expenses. Some of those allowable expenses include out-of-pocket medical, prescription, chiropractic, dental, and vision costs. At retirement, you can spend any remaining funds on ANYTHING you like.
You can deduct your HSA contributions on your Federal Income Tax Return, even if you do not itemize! Distributions are tax-free if you pay for qualified medically necessary expenses. Many banks and credit unions can show you how easy it is to open one of their HSA’s, and provide you with more details. To learn more about HSA guidelines, see IRS Publication 969 at www.irs.gov.
A licensed independent health insurance agent can help you select an HDHP from a variety of qualified health plans that are available through many different insurance companies. Contact AustinHealthPlans.com at (512)535-3556 or send an e-mail to: firstname.lastname@example.org and request a free quote.