HSA Information

With Health Savings Accounts, you can take control of your health and money.

  • Save 40-50% on your health insurance
  • Make your medical expenses tax deductible
  • Cut your taxes by up to approximately $2,200
1

A health care plan that puts you first

We believe that you are the best person to decide how to spend your health-care dollars. When people shop around for the best value,, health care providers will charge lower rates to attract patients.

2

Flexibility in treatment options

HSA funds will cover alternative, holistic, and preventive treatments. This encourages innovation and investment in areas where the current system has failed to find solutions.

3

A proactive approach to health

By making many preventive expenses eligible for coverage through HSA, you can take a more proactive approach to your own healthcare. And you can keep the money you don’t use!

The benefits of Health Savings Accounts

  • 1. How Health Savings Accounts Work

    A Health Savings Account is a tax-favored savings account combined an insurance or healthshare plan. HSAs allow you to deposit tax-deductible funds into a savings account that you can use to cover medical costs.

    To qualify you must have a high-deductible health insurance plan that qualifies to be partnered with an HSA. Money in the savings account can help pay the deductible. Once the deductible is met, the insurance starts paying. Money left in the savings account earns interest and is yours to keep.

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    2. Tax Deductible Contributions

    Health savings accounts allow you to legally avoid federal income tax by saving up to $3,450 for singles or $6,900 for families in your HSA health plans account.*

    You will receive a federal income tax deduction for money deposited, even if you take the standard deduction and don’t itemize your deductions. This tax deduction is available to everyone with no limitations on the amount.

    A one-time roll-over from your IRA (Individual Retirement Account) or FSA (Flexible Spending Account) is allowed.

    If your employer makes an HSA contribution for you, it is “excluded" from income and not subject to any income tax or FICA. Either way, this will immediately reduce your federal income tax due for the year.

    * Individuals age 55 and over may deposit into their account (and take a tax deduction on) an additional catch-up contribution of $1,000.

  • 3. Tax-Subsidized Medical Expenses

    HSA Health Plans allow you to spend the money in your account tax-free on qualified medical expenses, even if you have already received a tax deduction from the amount.

    This includes any fees from going to the doctor, purchasing prescription drugs, or paying expenses towards your deductible. Once your deductible is met, the health insurance covers your medical expenses as defined in the policy.

    In addition to these benefits, you can use your HSA health plans account to cover other qualified expenses that would not normally be covered by a health insurance policy.

    Also, your HSA health plans account can be used to pay these expenses for any spouse or dependent member of the family, including same sex and domestic partners, even if they are not covered under the insurance policy.

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    4. Premium and Tax Savings

    Health Savings Accounts can help you save money on both your insurance premiums and your income taxes. Because HSAs must be paired with a high-deductible health plan, your health insurance premiums are normally much lower than a typical plan.

    The savings from the lower premiums along with the tax-free deductions could be $5,000 or more every year. Below is an example comparing how much a typical non-HSA plan might cost compared to a typical HSA plan.

    This example is based on the average health insurance premium of an individual with a family of four living in a metropolitan area, covered medical expenses totaling $1,500 and $550 in expenses for dental care, contacts and eyeglasses.

Let's see what you could save

 

Typical Non-HSA Plan
Individual deductible: $500
Coinsurance: 80% - 20%
Typical HSA Plan
Aggregate Family deductible: $6,750 Coinsurance: 100%

Premium Paid

- $8,556
- $4,872

Your share of medical expenses ($1,500 claim)

- $700
$500 for deductible, $200 for coinsurance
- $1,500

Non-covered medical expenses

- $550
- $550
(dental and eye wear expenses)

Expenses Subtotal

= - $9,806

= - $6,922

Federal Tax Savings*

+ $0
+ $1,862

State Tax Savings*

+ $0
+ $332.50

Net Expenses (out-of-pocket minus savings)

- $9,806
- $4,727.50

Total (Net Savings with HSA Plan)

= +$5,199.50

* Health insurance premiums vary substantially based on age, geographic location and other variables.  Federal tax savings calculations assume that contributions are deducted from federal taxes.  Withdrawals for nonqualified expenses prior to the age of Medicare eligibility are subject to a 20% penalty by the IRS. Most states allow for state tax deductions on Health Savings Accounts.

HSA for America and its affiliates are not engaged in rendering tax, investment, or legal advice. Federal and state tax regulations are subject to change. If tax, investment, or legal advice is required, seek the services of a licensed professional.

To calculate the future value of your own HSA, please use our HSA Future Value Calculator.

Want to know more about how you can benefit from a Health Savings Plan? Click below to get an instant quote.