The Patient Protection and Affordable Care Act, also known as Obamacare, changed many rules about health care. But health savings accounts survived, albeit in a different form. Do HSAs still make sense under Obamacare?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, talks about HSAs and the impact of Obamacare on their provisions. Dan notes that with minimum deductible requirements of $1,250 for singles and $2,500 for family coverage, HSAs are compatible with many bronze and silver level Obamacare plans that UnitedHealth Group (NYSE:UNH), WellPoint (NYSE:ANTM), Humana (NYSE:HUM), and other insurers offer. The benefit of doing so is that you can get a deduction for contributions of up to $3,300 for singles and $6,550 for family coverage, with an extra $1,000 annually if you're age 55 or older. With TD Bank (NYSE:TD), Wells Fargo (NYSE:WFC), and other financial institutions offering HSAs, making the most of these provisions can give you extra tax benefits.
Don't let Obamacare confuse you
Obamacare seems complex, but it doesn't have to be. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." This free guide contains the key information and money-making advice that every American must know. Please click here to access your free copy.
Fool contributor Dan Caplinger owns warrants on Wells Fargo. The Motley Fool recommends UnitedHealth Group, WellPoint, and Wells Fargo and owns shares of WellPoint and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.