IHFRA Member First In U.S. To Purchase New Qualified Insurance Policy - HSA’s are Tax-free Accounts To Make Healthcare More Affordable

Furniture World Magazine

On January 1, 2004, International Home Furnishings Representative Association member, Pamela Wimbish, became the first individual in the U.S. to purchase a Medical Health Savings Account policy. Wimbish’s policy is the first of the estimated over 40 million HSA accounts that will be established in the next ten years, according to congressional analysts. HSAs, approved by Congress on December 8th offer an innovative approach to paying for healthcare in which consumers are offered more flexibility, choice and tax advantage. HSAs will not only increase health insurance options, but also help consumers control their own health care costs. The first individual medical HSA policyholder, Pamela Wimbish, is a wholesale furniture manufacturer representative for companies such as PeopLoungers and McKay. As a self-employed individual, Wimbish elected to purchase a HSA policy because it allows her to control her healthcare spending and also helps her plan for retirement. Wimbish purchased the policy from IHFRA Insurance Administrator Scott Leander. Unlike Medical Savings Accounts (MSAs), HSAs have fewer restrictions, are available to all Americans and are much easier to use. Another benefit of HSAs is that they are portable. Since the individual owns the account, a person with an individual medical or small group insurance policy can maintain the account even if there is a change of employers.The tax advantages of HSAs are many and include the following: • Contributions by an individual, employer or employee are all tax-free • Contributions qualify for both state and federal tax deductibility • Employers can save on their FICA taxes • Any interest earned on the funds in an HSA are tax-free • Funds used for qualified medical expenses are tax-free For more information contact The International Home Furnishings Representatives Association Insurance Administrator, Scott Leander at 1-800-819-2737.