Health Savings Account Info

Health Savings Accounts (HSA) provide a way to save money to pay for medical bills and expenses. There are certain requirements, benefits and items not covered by a HSA account.

Basics

• A HSA account is a way to pay for medical expenses while saving for future medical expenses. An individual decides how to use the money in the HSA, instead of an insurance company making the decision.

Benefits

• The benefits of a HSA are that the contributions are made with pre-tax money and do not have a time limit on when they must be used. Some employers make contributions to the HSA, which saves the employee money.

Eligibility

• To have a Health Savings Account, one must be enrolled in a High Deductible Health Plan. A HSA plan can be set up at a bank, credit union or insurance company. Individuals cannot have coverage with another insurance company or have Medicaid to use a HSA.

Usage

• Money from a HSA can be used to pay for doctor appointments, medication, hospitalizations, tests and durable medical equipment.

Items Not Covered

• Items that cannot be paid for using a HSA account are gym memberships, non-prescription drugs and cosmetic procedures.

Limits

• Contributions to a HSA are limited to $3,050 for individuals and $6,150 for families.