Portland Insurance Agency Since 1933

Many people have heard of HSA medical plans (Health Savings Account) but not many understand them.

An HSA generally refers to a “qualified high deductible” health insurance plan. What makes it qualified by the IRS is the deductible has to be at least $1,200 (individual) annually and most services, including prescriptions, must go to deductible first.

By purchasing an HSA health plan, you are then qualified to open an HSA savings account with your local bank or credit union. The IRS has determined the maximum amount of money an individual or family may put into this savings account each year.

When you put money into the HSA savings account, the bank issues you a debit card just for that account, to spend on IRS qualified health insurance expenses. You then use the debit card to pay for medical services at doctor offices, facilities, pharmacies and even for things not covered by your health insurance like dental, vision or chiropractic care.
The amount that you put into this savings account each year is then tax deductible on your personal taxes at the end of the year. So if as a family you put in the 2012 maximum of $6,250, that amount is considered non-taxable at year end.

In many cases, an HSA medical plan is priced lower than a traditional medical plan with copays, so you save two ways, on premium and on taxes.
One other way that you could potentially save money on your medical expenses by purchasing an HSA; HSA plans tend to have overall lower catastrophic expense exposure when compared to a traditional medical plan.

HSA’s are not for everyone, it‘s a good plan for those who can plan and put away for their medical expenses. Following please find some Q and A about HSA plans.

Q. Are HSA funds “use it or lose it?”
A. No, any balance left in the account carries over to the next year.

Q. What happens if I try to put extra money into the account above what the IRS allows?
A. The IRS would require that you take the excess money out of the account and may assess a penalty.

Q. What happens if I don’t have enough money in the account to cover a particular charge?
A. The debit card will allow you to spend only what you have put into the account, so you would have to either make a contribution to the account or use another method of addressing the medical charges.

Q. Can I withdraw the money in the account if needed for non-medical or qualified expenses?
A. Yes, but taxes and applicable penalties will apply.

Q. I can really use the money for things not covered by my HSA plan such as vision, dental and chiropractic?
A. Yes, that is correct. Please visit the IRS website publication 502 for a complete list. http://www.irs.gov/pub/irs-pdf/p502.pdf

Q. What happens if I cancel my HSA medical plan and I still have money in the HSA savings account?
A. Once you no longer have an HSA medical plan you are no longer eligible to contribute any more funds to the HSA savings account. You may keep the account open and continue to spend any funds remaining in the account on qualified medical expenses.

For more information about HSA health plans, including quotes, please contact our benefits department team at 503-296-0077. We are here to help!

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Of all the appliances found in the home, the water heater and washing machine are the most likely to cause serious damage, and cost home owners a bundle.

According to a nationwide analysis by a leading Insurance Company, one out of every 10 water-damage claims can be traced back to a malfunctioning hot water tank or washing machine. These two appliances are more likely than Mother Nature to inflict damage on the home.

“Water is the most common cause of home damage today – even more likely than fire,” said Jim Swegle, vice president of personal property for Safeco Insurance.

“Americans are spending twice what they were 10 years ago to repair water damage. In most cases, home owners can save themselves a lot of time and money by adding a few simple protective devices and doing routine maintenance. These tasks usually take just a few minutes and the parts often cost less than $20,” Swegle said.

Some water damage is covered under homeowners insurance, but some damage is not, he noted. Home owners who fail to maintain appliances and plumbing systems may face thousands of dollars in repair costs and weeks of invasive home repairs.

Simple fixes, such as installing a $10 stainless steel hose or replacing an aging water heater, could save a homeowner thousands of dollars and a lot of hassle.

But home owners can take simple steps to reduce their chances of water damage.

• Replace old water heaters. Water heaters do damage when they get too old and the tank rusts and bursts. Replace your tank once a decade. Today’s energy-efficient systems also will be cheaper to operate.

• Stainless steel hoses: Inspect standard rubber or plastic hoses used with washing machines, refrigerators and dishwashers and consider replacing them with stainless steel-braided or mesh hoses. Worn-out hoses with kinks, cracks or bulges need to be replaced immediately. A $10 braided steel hose can save thousands.

• Turn it off before you leave. Don’t leave dishwashers and washing machines running if you leave the house.

• Check attic air conditioners. At least once a year, go up to the attic or roof to check these appliances before they wear out. Look for wear and tear and loose connections.

And if you have water damage, feel free to call Leonard Adams Insurance first for advice about filing a claim.

Leonard Adams Insurance
503-296-0077 phone
503-296-0044 fax

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The National Weather Service is calling for the potential of 100 + MPH winds. With this bad weather the potential for property damage is imminent. A familiar question we receive is “if a tree falls on my neighbor’s property who is responsible to pay for the property damage?”.

You might not like this answer but keep in mind that each claim is unique and would be handled on its own merits by the insurance company. The cleanup and responsibility of the property damage would fall on the property owner where the tree or limb lands. Most often the property where the tree or limb originated would not be responsible if a storm blew it down as technically it is your property and you would have a responsibility for maintaining the property as a result of said damage. We say most often because with claims there are always gray areas, if you warned your neighbor about the tree being dangerous because it was dead and or dying and asked him to do something about it, then it might be their responsibility after all.

Since 1933 Leonard Adams Insurance has been providing Portland and the Northwest with local and national insurance options. The insurance information provided is merely descriptive and should be used for reference only.

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