An HSA is a high deductible health insurance plan coupled with a tax-advantaged savings account---like an IRA. The savings account is designed to pay for routine medical expenses and/or provide savings for the future. The high deductible health insurance plan is intended to cover serious illness and injury after the deductible has been met. HSAs were created to help give control back to consumers and lower healthcare costs.
Why choose an HSA?
High deductible health insurance typically costs less than traditional low deductible, copay plans.
HSA savings deposits are deductible from federal income (within legal limits).
HSA savings grow tax-deferred.
When used to pay for qualified medical expenses, HSA savings are tax-free.
You are free to use your savings for the care you want, when and where you want it.
No referrals are needed to see the specialist you want to see.
Any HSA funds not used each year remain in the account and earn interest tax-free to supplement medical expenses at any time in the future.
Like an IRA, the account belongs to you.
Who can have an HSA?
An individual covered by a qualified (under federal law) high deductible health insurance plan. In addition, individuals cannot be
Covered by other health insurance.
Claimed as a dependent on someone else's tax return.
Entitled to Medicare benefits.
What is a qualified medical expense?
Qualified means a medical expense that is tax-deductible according to IRS regulations (Publication502).
Examples of qualified medical expenses include, but are not limited to, medical services, hospital services, laboratory fees, prescription drugs, eye glasses, dental treatment and acupuncture.
HSA savings may be used tax-free to pay for qualified medical expenses.
What happens to any savings remaining at year's end?
It rolls over year after year. Save and use dollars for future medical expenses. You must maintain the qualified high deductible health insurance to make additional contributions in future years.
Next year you can add additional dollars, up to the legal limit.
Learn more about Health Savings Accounts by visiting the HSA Bank website and click on the HSA Education tab.
Click on the Free Quote button above to receive your free quote instantly!
After you have enrolled in an HSA eligible health plan, you can apply for a Health Savings Account with the HSA Bank. Click on the link below and you can start your online application today.
