How to Start an HSA Plan

A health savings plan, or HSA, is a relatively new way for people to pay for their medical expenses. It is a way that allows you to save up your own money in a tax-free account as long as you use that money for medical expenses. Typically, HSA plans are for people who have insurance with high deductibles. They are also plans in which employers and employees can contribute to build up a good amount of money for medical purposes. You can start an HSA plan by going through a few simple steps.

Things You'll Need

• An HSA-Compatible Insurance Plan

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Instructions

• 1

  Call your bank or financial institution. The place to start when you decide to set up an HSA plan is your local bank or credit union. Many financial institutions already have a system in place so you can start your HSA with them. However, not all bank branches offer this service so it is important to call first and find out before you make the trip. Many times, you may need to visit your bank's centralized operations to start an HSA.

• 2

  Enroll in an HSA-compatible insurance plan. In order to be eligible for an HSA plan, you must first be enrolled in a high-deductible insurance plan that is HSA approved. When signing up for your HSA plan, you may need to show proof that you are enrolled in a compatible plan.

• 3

  Submit your HSA paperwork. You can find all the forms and documents you need to fill out and submit online at your HSA administrator's website. You can either mail, fax or deliver the documents to the administrator once you have completed them. Some forms may even be electronic so you can fill them in online and submit them right away.

• 4

  Pay the initial fees. In order to set up an HSA plan, there are some initial set up fees you will need to pay to get started. Fees vary based on your HSA administrator and your health insurance situation. Initial set-up fees are generally no more than $25 and some HSA administrators may even waive this fee. There is typically a minimum balance that you must start off with in the account as well, which can be as little as $5 or as much as $100 or more. Also, monthly fees are generally minimal (less than $4) or annual fees can be up to $40 depending on the administrator you choose.

• 5

  Wait for your materials to arrive. After you have successfully enrolled in an HSA plan, wait for your materials to arrive in the mail. You should get a welcome package that explains the entire HSA program to you as well as information about account fees associated with your HSA plan. You should also receive instructions about how to use your health savings account, along with a debit card and a book of checks to use for your medical expenses.