Medicare vs Health Savings Account

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Medicare vs Health Savings Account

The health savings account is product of the 2003 US Congress "healthcare modernization" bill. These accounts are designed to allow citizens who were not yet receiving money from Medicare to contribute to a special account, which they eventually will be able to withdraw from to pay medical bills.

While this certainly isn't a viable alternative universal health care, which many congressional Democrats pushed for in the 90s, it does provide some low income individuals with a tax-deductible means of saving money for healthcare.

How does such an individual take advantage of this opportunity? It all depends on who you work through, but usually, you can establish a health savings account by going to your local bank and asking them for the paperwork needed to establish such an account. In most cases, they will be qualified to assist you.

Once you have established your savings account, you can contribute to it in a number of different ways. One way is to get your employer to automatically send a portion of your check to your health savings account. This portion will be entirely tax-deductible.

Another way to contribute to your health savings account is to find a job that offers health savings bonuses as a perk. Rather than having to withdraw money from your own salary, you can get money automatically added to your savings account in addition to your weekly check. Additionally, if you have money already saved, you can add it to your health savings account - and it will then become tax deductible.

If you're looking for a solution to your current health care problems, this definitely isn't it; but it may at least be able to provide you with a decent solution in the short term.



 

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