The Basics of HSAs


What is a Health Savings Account (“HSA”)?

What Is a “High Deductible Health Plan” (HDHP)? 

How can I get a Health Savings Account?

What is a Health Savings Account (HSA)?  Top
A Health Savings Account is a savings account that offers a different way for consumers to pay for their health care on a tax-advantaged basis. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. You must be covered by an HSA-eligible High Deductible Health Plan (HDHP) to be able to take advantage of contributing to an HSA. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can be deposited into the HSA. You own and you control the money in your HSA. In addition, the HSA owner cannot have other first dollar medical coverage in order to be eligible to contribute to an HSA.

What Is a “High Deductible Health Plan” (HDHP)?  Top
You must have an HDHP if you want to open an HSA.  An HDHP is a health insurance plan that generally doesn’t pay for first dollar health care expenses. Of course, your HSA is available to help you pay for qualified medical expenses as defined by the IRS.

In order to qualify to open an HSA, your HDHP must have a minimum deductible and maximum out-of-pocket limits as set annually by the IRS. HDHPs can have first dollar coverage (no deductible) for preventive care. CLICK HERE TO VIEW THE CURRENT INDEXED AMOUNTS FOR HSAs

How can I get a Health Savings Account?  Top
Contact FlexBank for help.