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.