Read the Fine Print

Fortress Insurance

We had frustrating experience in our office a few weeks ago.  A customer came to us to see if we could get her a better deal on the health insurance policy she’d purchased directly from a major carrier.   

When she originally purchased her policy, our visitor was also interested in setting up a Health Savings Account.  (In case you don’t know, an HSA  is a tax-advantaged medical savings account available to those who have a high-deductible health plan. Money put into the account is not subject to federal income tax at the time it is deposited. )  And so she asked the company she bought her insurance from if the plan she was enrolling in was eligible.  They assured her that it was, and so she went ahead and opened the account.
The frustrating part came when she came to us to get a second opinion on her health coverage.  After looking over what she had, we learned that, in fact, she was NOT eligible for an HSA, which was bad enough, but also had to deliver the bad news that she was now liable for the taxes due on all the money she had put away.
That’s not the kind of news that’s fun to deliver…
Staff Writer
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