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Health Savings Accounts (HSA)
offer another solution for Health Insurance coverage. An HSA consists of
two parts: A high-deductible health insurance policy that covers major
hospital expenses, and a savings account from which you can withdraw money
tax-free for medical care.
An
HSA provide several advantages for the consumer. Any monies remaining in
the savings account at the end of the year stay in the account. You do not
need to use the money by the end of the year. At age 65, the savings
account can still be used to pay for approved medical expenses. Or you may
withdraw any or all of the monies to be used for any purpose, although these
are subject to normal income taxes.
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