Example 3: The facts are the same as in Example 1, except that H has HDHP family coverage for H and the two dependents with a $5,000 annual deductible
. W is not covered under H's health plan and has no other health coverage.
You can contribute into that trust, and take a tax deduction for, the lesser of the annual deductible
for your high deductible health insurance, or $2,600 ($5,150 with family coverage.) Up to the limits, the higher the deductible, the lower your premiums, and the more you can put into the pot.
(A) for self-only coverage, the lesser of the annual deductible
or $2,600; or (B) for family coverage, the lesser of the annual deductible
for family coverage or $5,150.
In Situation 1, A is covered by an HDHP, a health FSA and an HRA that pay or reimburse medical expenses incurred before A satisfies the minimum annual deductible
These accrued benefits (in excess of the annual deductible
or twice the annual deductible
) should then be made available for tax-free investment, as with an IRA, but instead called an IRMA (Individual Retirement Medical Account).
The GOP plan provides a $35 to $40 monthly premium with a $250 annual deductible
and a 50-50 sharing arrangement on drug costs of up to $2,100.
All participating employees must receive comparable contributions based on the annual deductible
for the policy or an equal amount per employee; otherwise, a 35% excise tax applies.
To receive these MSA benefits, Internal Revenue Code section 220(c) (2)(A) requires that a taxpayer invest in a high-deductible health plan with an annual deductible
of a least $1,500 and not more than $2,250 for individual coverage and at least $3,000 and not more than $4,500 for family coverage.
Even if a primary carrier pays the full bill, a claim should be still be submitted to CHAMPUS to insure that full credit is given toward the annual deductible
(as of October 1, 1989, the first $50 of outpatient medical care for one person or the first $100 for a family).
The annual deductible
for a mid-range ''silver'' plan averaged $2,550 in a sample of six states studied by Avalere Health, or more than twice the typical deductible in employer plans.
We still have a $275 annual deductible
, then 75% coverage up to $2,200, then a doughnut of no coverage from $2,201 to $3,300 followed by a 5% co-pay thereafter.
2004-38, IRB 2004-15, the IRS ruled that an individual can make HSA contributions even if he or she is covered by both (1) an HDHP that does not provide benefits for prescription drugs and (2) a separate health plan or rider that provides prescription drug benefits before the HDHP's minimum annual deductible
is satisfied (i.e., the separate prescription drug plan is not an HDHP).
Generally, the maximum annual deductible
contribution an individual can make to a medical savings account is 65% of the annual deductible
for individual coverage or 75% of the annual deductible
for family coverage.
The uninsured medical costs can include payments required to be made under a medical insurance plan such as the annual deductible
and the co-insurance amount (employees share of expenses partially covered by the policy), as well as qualifying medical costs not covered by many plans such as dental expenses.