This is a new plan Mediclaim health Medical Savings Plan. The plan combines comprehensive medical coverage, a tax-advantaged savings account, and Health Risk and Biometric Assessment features.
The medical savings feature is a Health Savings Account an IRS-qualified feature that provides substantial tax savings and participant flexibility. The Mediclaim will make a contribution to the employee’s account, and the employee can decide whether to make contributions above a required minimum. The account is owned by the employee. This means that account balances roll over from year to year, even when an employee leaves the Mediclaim.
A health savings account (HSA) plan is a new way to secure more affordable health coverage for you and your family while you save on taxes. Flexible, affordable and easy to use. The HSA is like a bank account you use to pay for routine health care – such as office visits, prescription drugs and lab tests. The money you put into your HSA will reduce your taxes for the year – similar to the money you save in a 401(k) plan. If your HSA is part of your employee benefits program, your employer may also contribute to the HSA. There are dollar limits on the amount that can go into your HSA each year.
A health savings account is not an insurance plan. It's actually a means of making coverage more affordable for people who traditionally have high health insurance costs.
Here's how the health savings plan works: Rather than pay a high monthly premium for a policy with a low deductible and low co-pays, you opt for a high deductible policy and you make regular deposits into a health savings account.
Deposits made toward the health savings account are 100% tax-deductible, and can be used towards any out-of-pocket medical expense, like satisfying your deductible, covering office visits, etc.
And any health savings account funds you don't use will remain in the account, drawing interest on a tax-favored basis, until needed for future medical expenses or retirement.