Health Insurance Daily

Health Savings Accounts May Be Just The Ticket for Entrepreneurs

Anyone can use HSAs, but experts believe they are particularly well-suited for the self-employed.

"Entrepreneurs trade off the risk of paying out a couple of thousand dollars in tax-sheltered money in order to protect themselves from catastrophic costs," says Leon Rousso, a certified financial planner in Ventura, Calif.

Brad Rosley, who has a wife and three children, also a financial planner in Glen Ellyn, Ill., made the switch. His previous health insurance policy to cover his family cost him $660 a month, or nearly $8,000 a year, with a deductible of $1,000.

Rosley replaced that plan with an HSA. He went for a policy with a $5,100 deductible and put that much into the tax-sheltered account for a family. His premium for the policy is $260 a month, or $3,120 annually.

He uses the $400 a month he's saving over the previous policy to fund his HSA. Rosley figures he could well end up with a six-figure account, since any money left in the HSA can be rolled over from year to year.

For more information on this article click on HSA's

posted by Mike @ 9:45 AM