Health Savings Accounts
An HSA is a consumer-owned, tax-advantaged savings account, created to pay medical expenses, that is always combined with a high deductible health plan. The benefit of HSAs is in the consumer incentive (it's now their money!)to better plan and use health care resources.
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For additional information on
Health Savings Accounts (HSAs),
go to the IRS government website.
HSA Information
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What is a qualified HSA insurance plan?
In order to have a HSA you must have a qualified high deductible health plan. Often referred to as HDHP, this type of plan typically has lower premiums than plans with lower deductibles.
To be considered a "qualified" plan, the HDHP must have:
1) an annual deductible of at least $1,100 for individuals and $2,200 for families;
2) families must meet the family deductible before eligible expenses are paid by the HDHP;
3) The sum of the annual deductible and out-of-pocket expenses may not exceed $5,500 for individuals and $11,000 for families;
4) All benefits must be subject to the calendar year deductible. Copayment can apply to the out-of-pocket maximum after the deductible is met.
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The Health Savings Account (HSA)
The HSA is a personal savings account designated to pay for medical expenses. An HSA can be funded by employers, employees, or both. HSA funds can have a set interest rate or they can be invested in mutual fund options as offered by the account holder. Funds can be accessed by debit card, check, or online fund transer.
Funds not used continue to stay in the account and earn interest for future use. There is no "use it or loose it" rule.
HSA funds can be used to pay for many types of medical expenses, even some that are often not covered by health insurance plans. These include (but are not limited to):
1) Health plan deductibles, copayments, and coinsurnace;
2) Prescription drugs, and over the counter medication;
3) Dental services, including orthodontics;
4) Vision care, including glasses, contacts, and lasik surgery;
5) Long-term care services;
6) Medically related transportation and lodging;
7) COBRA premuims, and certain qualified long-term care premiums.
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