There are two new ways to received tax breaks on their health insurance that all small business and self employed individuals should consider.


Self Employed Straight Deduction
According to information posted on IRS website, self-employed individuals can deduct their health insurance costs on their 2003 Federal tax returns. The deduction cannot exceed your net income and is made against your adjusted gross income. Medicoverage is not a tax professional and this information is not intended as tax advice. For more information visit www.irs.gov or contact your personal tax advisor for specific information.


Health Savings Accounts
Congress approved Health Savings Accounts (HSAs) on December 8, 2003 as a tool for individuals and small businesses to help control health insurance costs. An HSA is a tax-exempt account established to paying medical expenses and save for retirement. Basically, you can think of them as sort of an IRA that you can also use for medical bills. Individuals or small businesses with HSA’s can invest money tax-free and withdraw it without penalties to pay for medical expenses. Any money or interest that you do not spend on medical bills becomes yours when the policy matures. Check out our Health Saving Account Overview page for more information or call us directly at 888 285 6334.