A Health Savings Account , HSA, is a portable, you own it, savings account that allows
you to set aside money for health care expenses tax free.
You must have a high deductible health insurance plan to open an HSA. Almost any
insured bank or credit union can be your HSA bank. If they can offer an IRA (individual
retirement account) they can offer an HSA. However, that doesn’t mean they have to
Different from other insurance products, an HSA rolls over from year to year , with
no “use it or lose it,” your money can be invested in mutual funds, and it’s owned
by you, not your employer.
Think of an HSA like a Healthcare IRA. Considering the high costs of health care
today, an HSA offers a wide range of benefits to consumers.
Health Savings accounts truly give you total control over where, and how, your health
care dollars are spent. Once you understand how they operate, you will begin to appreciate
the cost savings and effectiveness of these products.
Affordable Health Insurance
You pay less each month for your high-deductible health insurance premiums.
Pre-tax contributions are made to your HSA account. They earn tax-exempt interest
and the investment gains on your HSA are exempt as well. Withdrawals from your HSA
for qualified medical expenses are tax exempt. Consult with your tax advisor for
Control over your expenses
You are in control of how, and where your healthcare dollars are spent.
You own your HSA account and it’s yours regardless of where you work or what insurance
company you are insured with.
Your HSA contributions can be used to pay for a wide variety of eligible medical
expenses not typically covered by other healthcare plans.
Planning tools for the Future
HSA contributions can be directed towards long term investments such as, mutual funds
to maximize the future value of your HSA account growth.