Health Savings Accounts

Using Pretax Dollars to pay for Naturopathic Care

Financial constraints and lack of insurance coverage are the most frequent concerns that I hear from my patients. Other patients express frustration with paying into an insurance plan they rarely use because they prefer to utilize alternative medicine. Insurance coverage for Naturopathic care continues to fall short for many individuals.

For those of you frustrated with your insurance plan and its inability to meet your healthcare needs, consider the following:

1. Go to the Vermont Association of Naturopathic Physicians to help pass the insurance reimbursement bill requiring all insurance companies in Vermont to cover Naturopathic care.
2. Call state legislators and let them know what you want.
3. Look into transitioning to a high deductible plan to cover emergencies. Invest the money you save into an HSA to pay for routine visits and follow-ups. You may then choose your care provider without needing insurance approval.

The following information will provide a brief overview of one option available to help offset out-of-pocket medical expenses.

A Health Savings Account (HSA) provides the ability to pay for medical expenses with pre-tax dollars, for qualified individuals. Naturopathic medical care and supplements fall within the definition of medical expenses and so can be paid with an HSA.  

In order to qualify for an HSA you must have a high deductible health plan or “catastrophic plan” with a minimum deductible of at least $1050 for individuals and $2100 for families.  Contributions to HSA may be made up until age 65. However, you may continue to use the accrued money in your HSA after age 65, until the money is spent.  

Banks, credit unions, and insurance companies offer HSA accounts.  Your employee benefits may also include an HSA or cafeteria plan (similar to HSA); check with your HR department.

These days, your HSA may come with a debit card or checking account from which you can directly pay for your medical costs without having to submit any paperwork. The government leaves the definition of medical expenses up to each individual's discretion.

Finally, HSA may accrue interest or invested depending on your account set up. New guidelines allow the money to be rolled over from year to year. You no longer lose unused money. 

Visit  www.ustreas.gov/offices/public-affairs/hsa/faq.shtml for more information or speak with one of the above qualified institutions to learn how you can benefit from an HSA.