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According to a recent estimate, a Kentucky couple retiring in 30 years may need almost $500,000 for to pay for medical costs in retirement. There are many medical costs to plan for in retirement, including long-term care and Medicare premiums. The best way to prepare for retirement is with a Health Savings Account (HSA) compatible with a health insurance Kentucky plan. HAS funds can pay for retirement health expenses tax-free. What is a HSA compatible Kentucky health insurance plan? A KY health insurance plan which meets the following conditions is considered HSA-compatible:
• The plan’s annual deductible must be at least $1,200 for individuals and at least $2,400 for families.
• The sum of the annual deductible (amount you pay out-of-pocket before your plan pays for your health care) and the other yearly out-of-pocket expenses under the plan (other than premiums) must not be greater than $5,950 for individuals and $11,900 for families. How HSA’s Complement Your Retirement Plans: With HSA's, all of the following are tax free: - the contributions made to your HSA
- interest and investment earnings in your HSA
- payments made from your HSA for qualified medical expenses (includes doctors, hospitals and prescription drugs, dental and vision, chiropractic and acupuncture, lab costs, and more) So your retirement savings are safer when you pay for your qualified medical expenses from your HSA. Also, the contribution to your health savings account through a pre-tax payroll deduction is not subject to Federal Insurance Contributions Act (FICA) or the Federal Unemployment Tax Act (FUTA) taxes. A Kentucky resident who reaches age 65 will find a HSA a great option when it comes to paying qualified medical expenses, premiums for long-term care, Medicare premiums, as well as out-of-pocket expenses, co-insurance and prescription drug premiums. If HSA funds are used to pay for non-qualified medical expenses or everyday spending, retirees at age 65 would have to pay tax only at their income tax rate which is now at a lower rate than when they were working. Another advantage is that you don’t lose your HSA even if you leave the KY health insurance plan it is paired with. HSA plans from Leading Kentucky Health Insurance Companies: Leading Kentucky health insurance companies such as Anthem Blue Cross Blue Shield, Assurant and Humana offer simple and flexible HSA plans for Kentucky residents. - The Lumenos HSA plus plan from Anthem Blue Cross Blue Shield offers traditional health coverage benefits that can be paired with a HSA for more flexibility and tax advantages. - Assurant offers several HSA compatible options with CoreMed, its most popular major medical plan. For the available OneDeductible plan, all options are HSA-compatible. - HumanaOne’s HSA-qualified High Deductible Health Plan (HDHP) is covered in full for in-network preventive care services. You can choose your deductible. The HSA-qualified plans include an initial 12-month rate guarantee as long as you stay in the same area and keep the same benefits. For more information on these HSA compatible health insurance Kentucky plans, contact an experienced and reliable licensed health insurance broker.
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