How Do Health Savings Accounts Work in Florida?

Health savings accounts in Florida work much the same way that a health savings account works in other parts of the country. A health savings account (HSA) is a tax-advantaged account that permits the account holder to deposit an amount in order to meet certain unreimbursed medical expenses incurred by the insured.

High Deductible Health Plans

An HSA is only permitted for those individuals who participate in a high deductible health plan (HDHP). HDHPs are plans where the insured takes on a high deductible amount for the plan. The amount of deductible in 2009 that qualifies a health insurance plan as a HDHP is $1,150 for individuals and $2,300 for family coverage. An HDHP can be established by an individual or offered as part of an employer-sponsored group plan.

What Participating in an HSA Allows

HSA allow a HDHP participant to set aside an amount up to a predetermined maximum in account that is not subject to taxation. The money set aside in an HSA must be used for unreimbursed medical expenses such as deductibles, co-pays and prescription drugs not covered by health insurance. This requirement is the same for all HDHP participants that establish an HSA, regardless of whether they live in Florida, California, Alaska or New York.

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