Q: Is there anything that I can do to help lower our health costs with MNSure/Obamacare?
A: Yes, actually, there is. If the health plan that you picked is an HSA eligible plan, you are eligible to put money into a Health Savings Account or HSA, and take a front-page tax deduction for it. Then you use that money to pay for your out-of-pocket medical expenses. The most you can put in:
Single – $3,400
Family – $6,750
Then, if you are 55 or older, you can add another $1,000 to catch up on the contribution. The money carries over year-to-year and as long as you take the money out for medical expenses, you don’t pay any tax on it. Once you turn 65, you can use the money to pay your insurance premiums. If you can put a big chunk in, great! But if you can’t, that works too. For example: You go to the doctor, then the clinic send you a bill. You write the first check from your checking account into your HSA account (and take the tax deduction right here). Then you write your second check from your HSA account to pay the doctor. You don’t take any medical expenses that were paid out of your HSA account because you already took the front-page tax deduction.
For more information on how an HSA could help you, please feel free to give our office a call.