Health Savings Accounts, HSA

Coverage for your health care and a savings account for your costs

An Health Savings Account (HSA) gives you access to quality health care.  Plus, it gives you a way to manage what you pay.

A typical HSA includes:

  • A high-deductible health insurance or benefits plan for medical coverage.
  • A health savings account to pay for qualified out-of-pocket costs.

HSA benefits

You own it.  You decide whether to spend or save the funds in your health savings account.  If you decide to change employers or health plans, the account is yours to keep.

You don’t lose it.  Any money not used at the end of the plan year rolls over to the next year.

It can grow.  Your HSA is a savings account opened at a local bank that earns interest.  You can save money in your account and let it grow, to pay health care costs down the road, even during retirement.  And after you build up a certain amount, you may have investment options.

Tax advantages of an HSA

With an HSA you also get:

Tax savings.  Money you put into the account can reduce your taxable income.

Tax-free earnings.  Money you keep in your HSA earns interest tax free.

Tax-free spending.  Money you take out to pay for qualified health care costs in never taxed.

How an HSA works

  • Visit your local bank and enroll in an HSA.  You must be covered by a high-deductible health plan, and you must not be eligible for coverage under any other health plan.
  • You’ll get welcome and debit card materials in the mail.
  • Contribute anytime.  You, your spouse and family, and your employer can contribute up to the yearly limit set by the Internal Review Service – 2013 is $3,250 for an individual and $6,450 for a family.
  • Know how much you have.  You can only use the money that is in your HSA to pay for qualified medical expenses.
  • Visit the doctor, hospital and other healthcare providers.  Pay for your health care expenses with your HSA Debit Card account, or pay out of pocket and save your account.  Either way, pay until you reach your yearly deductible.
  • Then pay a copay or coinsurance after each visit.  Use your HSA if you want.
  • Once you reach the plan’s out-of-pocket max, your health plan pays the rest at 100%!

$mart Health, Inc. tips on using your HSA

Make the most of your HSA! Here’s How:

Stay in your network.  Doctors, hospitals and other healthcare providers in the network have a contract to provide reduced rates to our members.

Know before you go.  Unless it is an emergency, compare what doctors and hospitals will charge you for some common services before you make an appointment.

Keep track of your deductible and fund balances.

Pay only for qualified health care expenses.  Otherwise you could face tax penalties from the IRS.

More help for using your HSA

Do you have HSA questions?

Contact Capt. Rob Hamilton at $mart Health, Inc.  (813) 944-5399.