The United States’ healthcare system has different policies and programs aimed at addressing patients’ medical needs. Americans can also consider various insurance plans depending on their income levels and health risks. The paper presented below gives a detailed definition of a Health Savings Account (HAS) and describes whether it is a good idea for health care.
Definition and Explanation
A Health Savings Account (HSA) is a savings account that taxpayers enrolled in any high-deductible health plan (HDHP) in the United States can consider to cater for their health demands. The amount deposited initially does not attract income tax. Another important attribute of a HSA is that the accumulated funds will roll over whenever they remain unspent. Keller and Sweetnam (2018) go further to indicate that subscribers will own their HSAs and use them to cater for all qualified healthcare expenses or costs. Citizens who have such accounts will benefit significantly from different tax advantages.
Why a HSA is a Good Idea
A good healthcare delivery system should be able to maximize citizens’ health outcomes and address disparities. Keller and Sweetnam (2018) assert that HSAs are appropriate since they make it possible for many people to reduce their medical costs. According to Johnson (2018), individuals who have such HSAs will have increased efficiency of assessing medical services. This plan is also important because it encourages people to save adequate money for their future medical expenses. Another reason why HSAs are relevant is that every patient can receive exemplary services without the input of a gatekeeper.
Under the HDHP, consumers who have HSAs will be responsible for their unique health needs and care choices. This means that they will make appropriate decisions regarding the best sources and nature of medical services. Another unique feature associated with a HSA is that employers, friends, and relatives can contribute to the account. Additionally, the balance available in the HSA is available for future medical expenses after a subscriber changes his or her insurance plan (American Nursing Association, 2017). The use of a debit card increases the convenience associated with a HSA. These features and attributes explain why this account can be a good idea for every American citizen.
Options for Health Care Consumers
The attributes associated with a HSA expands the options of health care consumers. The first choice is that individuals with such accounts can use their funds to pay for various medical expenses whenever demanded. This is possible without incurring any federal tax penalty or liability. HSAs also fulfill the aspects associated with consumer-driven health plans. Citizens can also receive timely medical services without the need for a gatekeeper (Johnson, 2018). This means that third-party stakeholders will not have to determine specific medical services or benefits. Additionally, these accounts expand consumers’ options since they are empowered to make their personal health choices.
Despite such flexibilities, HSAs might not be appropriate for patients who expect to incur huge expenses in the future. This happens to be the case since they might be uneconomical or ineffective for them. Despite this challenge, HSAs continue to provide numerous options and choices for many American citizens in need of high-quality and timely health services (Johnson, 2018). Individuals can use HSAs to save for their future medical needs or expenses.
Conclusion
The above discussion has revealed that HSAs can make a difference for many people in need of superior medical services. These plans can cater for most of their out-of-pocket expenses and make it possible for them to record positive health outcomes. Individuals planning to have personal health savings should consider the above benefits.
References
American Nursing Association. (2017). Health savings accounts – A primer. Web.
Johnson, W. R. (2018). 2019 health savings accounts facts. Erlanger, KY: National Underwriter Company.
Keller, C. L., & Sweetnam, W. F. (2018). Health Savings Account answer book. Riverwoods, IL: Wolters Kluwer Law & Business.