Health Savings Accounts also known as HSA Plans, allow you the ability to put money away and withdraw it tax free. If you use it for qualified medical expenses, like deductibles, copayments, coinsurance, dental, vision and more. For a full list of items that are HSA eligible please visit https://fsastore.com/.
HSA plans typically offer a lower max out of pocket than the standard high deductible plan which makes this a great option if you plan to have a surgery or utilize your healthcare to reach the max out of pocket.
The one downfall to HSA plans is that there are no copays available on most of these plans since you can put money away pre-tax to use in replacement of the copays. You do get a discount for having a healthcare plan but that can vary from pharmacy, physician’s office, and facility.
For 2023 the maximum contribution for an individual is $3,850 and $7,750 for a family. If you are 55+ years old, then you can contribute an additional $1,000.
There is not a requirement to open and fund and HSA account, just an added benefit.
You do need to have an HSA complaint healthcare plan to contribute to an HSA.
You can open an account at your local bank if they offer an HSA checking account.
The funds you deposit do roll over from year to year as it is your money.
You are not permitted to use your HSA funds to pay your monthly premium unless you are on Medicare. You then are allowed to pay monthly premiums for Medicare Supplements. But, once you become Medicare eligible you are not able to contribute to your HSA account any longer, you are able to utilize the funds until they are gone.
Most carriers have a cost estimator tool on their app. Once you create an account you should have access, this too can save you quite a bit of money when it comes to searching for the best cost for imaging, procedures, and prescriptions.
For example, if you need to get an MRI scan of your lower abdomen, you will go to the cost estimator tool:
- Select MRI – Lower abdomen region.
- A list of facilities would pop up showing estimated cost, and rating of facility.
- Most carriers offer a reward program for being savvy and shopping for the best cost.
If you have additional question, please contact us. We’re happy to help!