For New York State Business

CONTACT INFORMATION

11 Broadway Suite 440
New York, NY 10004

Telephone: 212 825-0055
Main Fax: 212 825-0955
Alternate Fax: 718 980-5676
Toll Free: 800-711-4911

Frequently Asked Questions

The money is deposited into a bank account owned by the employee ! Unlike many other tax breaks, there are not "any income limits". Anyone under age 65 who buys a qualified high-deductible policy can open an HSA.

Although the tax benefits in the FSA and HSA are similar, there are several important differences. The biggest and most important difference is that your HSA can roll over (YOUR MONEY), from year to year and continue, (YOUR MONEY) to grow tax-deferred. If (YOUR MONEY), is used for covered medical expenses, when (YOUR MONEY) is withdrawn it is  tax free, for the third time.

Employers, if your company needs the tax deductions you can reduce your employees share of the premium significantly by fully or partly funding the HSA for them, perhaps even adding a 401(k) - style match. (ask our representative).

Approved by Medicare Prescription Drug Improvement & Modernization Act of 2003 and supplemental guidance from the IRS. The company and employee must be enrolled in a High Deductible Health Plan (HDHP). The member may not be enrolled in other general medical insurance coverage, any Health Care Account, or Medicare and may not be covered or as a dependent on another person's tax return (but may be a spouse filing jointly). Your balance is never forfeited after any amount of time.

The account is owned by the member. The accounts maximum is generally the HDHPs deductible. If you, the employee, leave that job, you keep the money, similar to a 401(k). There is a 10% penalty - plus an income tax bill if you use any of the money for non-medical expenses before age 65. After age 65 you will not be hit with the 10% penalty. But you will still have to pay income taxes. The contributions will not affect your IRA limits. Its just another tax-deferred way to save for retirement. The member owns the account and any contributions regardless of the source or timing of the contribution.

 
Deductibles and Out-Of-Pocket Limits

HDHP Generate Funds For HSAs

An HSA QUALIFIED HIGH Health savings accounts (HSAs) are connected by law to high deductible health plans (HDHPs). To state it clearly HSAs require an individual to use his/her own money, (or money set aside by the employer for the individual's use), to pay for medical expenses up to a fairly substantial deductible. At that point in time insurance coverage is as traditional major medical, ALWAYS REFER TO YOUR PLAN BENEFIT BOOKLET. These high deductibles creates lower premiums and are less costly per covered person then traditional insurance. Thus generating the funds for the tax savings account.

"Pre Existing Condition"

Prescription drugs taken to prevent the onset of a condition for which a person has developed risk factors for can be considered preventive care, like cholesterol-lowering medication. Preventive care examples include: periodic health evaluations like annual physicals, screening services like mammograms, routine prenatal and well-child care, child and adult immunizations, tobacco cessation programs, and obesity weight loss programs.

As a general rule of thumb, if you are treating an existing illness or condition with either a drug or procedure, that drug or procedure is not considered to be preventive care (because the condition already exists, and therefore you cannot be preventing it.) If you are trying to prevent an illness or condition from occurring by taking a drug or with a procedure, that is considered to be preventive. Some drugs, like cholesterol lowering ones, can be both preventive and non-preventive under GSA Rules, depending on your own health situation.

Co-pays are allowed to apply to preventive care. Higher out-of-pocket (co-pays and co insurance) is allowed for out-of-network care; Health savings accounts (HSAS) are connected by law to - deductible health plans (HDHPs). To state it clearly HSAs require an individual to use their own money, ( or money set aside by the employer for the individual's use), to pay for medical expenses up to a fairly substantial deductible. At that point in time insurance coverage is as traditional major medical. These high deductible plans are less costly per covered person then traditional insurance.
 

Examples of Allowable Expenditures:   Acupuncture Drugs (prescription) Alcoholism Treatment Eyeglasses   Ambulance Fertility Enhancement Artificial Limb Guide Dog Artificial Teeth Gynecologist Bandages  Health Insurance (if prescribed by a physician) Birth Control Pills (by prescription) H.M.O. (certain expenses) Breast Reconstruction Surgery (mastectomy) Hearing Aids Car Special Hand Controls (for disabled) Home Care Certain Capital Expenses (e.g., for the disabled) Hospital Services Chiropractors Laboratory Fees Christian Science Practitioners Lasik Surgery COBRA PREMIUM LEAD-BASED PAINT REMOVAL Contact Lenses Learning Disability Fee (prescription) Cosmetic Surgery (if due to trauma or disease) Legal Fees (if for mental illness) Crutches Life-Care Fees Dental Treatment Lodging (for out-patient treatment) Dermatologist Long-Term Care (medical expenses) Diagnostic Devices Long-Term Care Insurance (up to allowable limits) Disabled Dependent Care Expenses Meals (associated with receiving treatments) Drug Addiction Treatment (inpatient) Medical Conferences (for ill spouse/dependent) Medicare Deductibles Prescription Medicines Medicare Premiums Prosthesis Mentally Retarded (specialized homes) PSA Tests Nursing Care Psychiatric Care Nursing Homes Psychiatric Care Obstetrician Psychoanalysis Operating Room Costs Psychoanalyst Operations - surgical Psychologist Ophthalmologist Qualified Long-Term Care Services Optician Radium Treatment Treatment Organ Transplant (including donor's expenses). Special Education for Children ill or disabled) Orthodonture Specialists Orthopedic Shoes Spinal Tests Orthopedist Splints Osteopath Sterilization Out-of-pocket expenditures and deductibles for your spouse or dependent even if insured under a non-HSA health plan Surgeon Out-of-pocket expenditures while enrolled in Medicare Telephones and Television for the hearing impaired Over- the-Counter Medicines Therapy Oxygen and Equipment Transportation Expenses for Health Care Pediatrician Treatment Personal Care Services (for chronically ill)  Vaccines Podiatrist Weight Loss Programs Post-Nasal Treatments Wheelchair Prenatal Care Wig (hair loss from disease)   X-Rays Examples of Non-Allowable Expenses:   Advance Payment for Future Medical Expenses Athletic Club Membership Automobile Insurance Premiums Babysitting (for healthy children) Boarding School Fees Bottled Water Commuting Expenses for the Disabled Controlled Substances Cosmetic and Hygiene Products Dancing Lesions Diaper Services Domestic Help Electrolysis Hair Removal Funeral Expenses Hair Transplant Health Programs at Resorts, Health Clubs, & Gyms Household Help Illegal Operations and Treatments Maternity Clothing Med gap premiums Nutritional Supplements Premiums for Life, Disability, Other Accident Insurance Scientology Counseling Social Activities Special Feeds/Beverages Swimming Lessons Teeth Whitening Travel for General Health Improvements Tuition in a Particular School for problem children   Why rollover an IRA to an HSA?   ASK KIM Roll Over an IRA to HSA? By Kimberly Lankford May 3, 2007   I know that a new tax law lets you roll over money from an IRA to a health savings account. When can you do this? A new tax law signed in late 2006 made several changes to the HSA rules, including allowing rollovers from an IRA to an HSA without taxes or penalties. But the rollover rule isn't quite as generous as it seems. You can make the rollover only once in your lifetime, and only up to the maximum HSA contribution limit for the year -- which is $2,850 for individuals or $5,650 for family coverage in 2007 (plus an extra $800 for people age 55 and older), minus any HSA contributions you've already made for the year. And you must already have an HSA, which requires having a health insurance policy with at least a $1,100 deductible for individuals or $2,200 for family coverage in 2007. This rollover can provide a tax-free source of money to cover big medical expenses or help you jump-start your HSA for future savings. But if you have enough cash, it's better to make your full HSA contribution with new money because your contributions are tax deductible and can be used tax free for medical expenses. Then max out your IRA contribution ($4,000 for 2007; $5,000 if you're 50 or older). That way you can make the most of both tax-advantaged accounts without having to raid your retirement fund. If you do want to make the rollover, contact both your IRA and your HSA administrator and tell them that you want to make a direct transfer, so you don't touch the money and incur any taxes or penalties.

We have another brokerage (Marquis Brokerage) firm for the partners, owners and employees personal insurance, such as homeowners, rentals, coops, condos, auto,  (and many other personal services for the benefit of employers, employees and partners).

 www.Marquisbrokerage.com

                                               email address: marquisbkg@aol.com