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Health Savings Account Insurance - New Jersey Business
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The Health Savings Account replaced Medical Savings Accounts on
January 1, 2004. All Americans under the age of 65, regardless of their employment status, now qualify for a Health Savings Account. |
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Health Savings Accounts are expected to benefit small businesses by
creating a health care environment where employers, employees, and medical professionals all have a stake in keeping costs lower. |
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Health Savings Accounts are designed to make health insurance more
affordable by combining a tax free savings account with a high deductible health insurance plan. It allows for "before tax contributions" from employers and employees into a savings account that can be used for medical expenses. The contributions cover first-dollar medical costs until a health insurance plan deductible is met. High deductible health insurance has lower premiums that are more affordable for employers and employees. |
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Employers can fund a Health Savings Account with an amount equal
to the employees deductible or split the cost with the employee, and the money can be used to pay health care expenses. If the money is not needed, the money can be invested. Withdrawals can also be made for non-medical purposes, but will be taxed as normal income and are subject to a 10% penalty if done prior to age 65. |
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To be eligible for a Health Savings Account, you must purchase a
health insurance plan with annual deductibles of at least $1,200 for a single person or $2,400 for a family. Also, the sum of the annual deductible and the other annual out-of-pocket expenses required to be paid under the plan (other than premiums) can not exceed $5,950 for individuals and $11,900 for families. |
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Click on the link below to fill out a secure quote request form for a
health savings account that benefits large employers, small business owners, and their employees. Or you can speak with one of our Group Health Insurance specialists at 609-430-4744 to discuss the policy features in more detail. |
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We are your local central New Jersey insurance agency, offering comprehensive group health
savings account insurance services to businessess in the following cities and counties: Skillman, Princeton, Trenton, Slackwoods, Ewingville, Bakersville, Lawrenceville, Stoutsburg, Glenmoore, Mount Rose, Centerville, Rileyville, Mercerville, Hamilton Square, Yardville, White Horse, Groveville, Bordentown, Washington Crossing, Marshalls Corner, East Windsor, South Brunswick, Plainsboro, Linvale, Harbourton, Mount Airy, Blawenburg, Deans, Kendall Park, Harlingen, Dutchtown, Pleasantview, Plainville, Hillsborough, Belle Mead, Flagtown, Franklin Park, Woods Tavern, Three Bridges, Neshanic, Griggstown, Bridgewater, Finderne, Edison, Middlebush, Millstone, Kingston, Rocky Hill, Zion, Reaville, Cloverhill, Stockton, Flemington, Sand Brook, Croton, Somerset, Piscataway, Manville, Somerville, Byram, Middlesex, Washington, New Sharon, Chesterfield, Hamilton, Georgetown, Allentown, Fieldsboro, Hedding, Roebling, Columbus, Jacksonville, Chambers Corner, Wrightstown, Mount Holly, Monmouth, North Brunswick, Stanton Station, Willingboro, Cherry Hill, Princeton Junction, Cranbury, Etra, Robbinsville, Winsor, Edinburg, Dutch Neck, Flemington, Mercer County, Somerset County, Middlesex County, Camden County, Hunterdon County, Morris County, Burlington County, Ocean County, and Monmouth County, NJ. We also offer group health savings account insurance services to businesses throughout New Jersey, including the Atlantic City, outer Philadelphia, Camden, and Newark areas. |
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Someone can contribute up to the annual deductible amount on your health insurance
plan each year, but the amount can't exceed $3,050 for an individual or $6,150 for a family. These maximum amounts are for 2010 and will be adjusted each year. |
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If you are between the ages of 55 and 65, you can make an additional annual "catch
up" contribution, too. |
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A New Jersey Health Savings Account can be used to pay for many types of
medical expenses, even some that are often excluded on health insurance plans. These include the following: |
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Health insurance plan deductibles, copayments, and coinsurance
Prescription and over-the-counter drugs
Dental Services: including braces, bridges, and crowns
Vision Care: including glasses and lasik eye surgery
Psychiatric and certain psychological treatments
Long term care services
Medically related transportation and lodging
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Under most circumstances, Health Savings Accounts can't be used to pay health
insurance premiums. However, some exceptions are listed below. **
Health insurance premiums if you are receiving federal or state unemployment
benefits
Premiums for COBRA qualified health insurance
Long term care insurance premiums
Premiums for a health plan (other than a Medicare supplemental policy) for an
individual age 65 or older |
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**You must establish a Health Savings Account before incurring any medical
expenses or the expenses will not qualify. |
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You will be sent at the end of each year a statement showing the amount you contributed
to your Health Savings Account during that year. As long as the amount contributed is less than or equal to the maximum allowable contribution, that amount is an "above the line" deduction and can be taken even if you do not itemize.
If you are self-employed, in addition to deducting your Health Savings Account
contributions, you may also be able to deduct 100% of your health insurance premiums. You must meet the criteria listed below. |
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1. You are not eligible to participate in a subsidized health plan offered by an employer or
your spouse's employer.
2. The deduction does exceed the amount of net income from your business.
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Most Health Savings Accounts will provide you with a checkbook or debit card to
pay for qualified medical expenses. |
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1. You don't need to get approval from the Health Savings Account administrator
when you use funds in your account.
2. You don't need to submit receipts to the Health Savings Account administrator,
though you will need to maintain the receipts for filling out your income taxes properly. |
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No. Funds in a Health Savings Account are held in a trust and are administered by a bank,
insurance company, or other approved Trustee. You decide how your contributions are invested in a Health Savings Account. Usually you will have the options listed below available. |
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Interest-Bearing Account
CD's
Money Market Funds
Mutual Funds
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**The information, pictures, and other content in this website about particular insurance services is
only provided for informational purposes. Any decisions regarding your insurance needs should be discussed with a licensed insurance agent. |
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Life - Health - Home - Auto - Business
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PRINCETON
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INSURANCE AGENCY, INC.
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Princeton Insurance Agency, Inc.
1330 Route 206
Skillman, New Jersey 08558
Somerset County, NJ
(609) 430-4744
Fax: (609) 430-4722
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Group Health
Savings
Account
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"Proudly serving
all of New Jersey"
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