How Your Health Savings Account Can be Used to Save You Money

How Your Health Savings Account Can be Used to Save You Money

The healthcare industry is a complex world that can make getting what you need difficult. But with a Health Savings Account, or HSA, paying for your healthcare doesn’t have to be so stressful on you or your wallet. Below you’ll find everything you need to know about a Health Savings Account, what it can be used for, and how it could benefit you.

A Health Savings Account: The Basics

Offered alongside higher-deductible health insurance plans, Health Savings Accounts (HSA) are flexible healthcare options that allow individuals and families to contribute money directly to a fund which can be used later to pay for medical or health expenses. Money can be added to an HSA and used for a variety of expenses, which help offset the cost of your out-of-pocket expenses like health insurance premiums, copays, etc.

How HSAs Work

Much like 401(k) programs offered through your employer, the money you put into a Health Savings Account is not taxed. This means that when you sign up for an HSA, a predetermined amount of money will be taken from your earnings to be deposited into the HSA, prior to taxes being taken from those earnings.

Under federal guidelines, individuals can contribute up to $3,450 each year to an HSA, while families can contribute up to $6,900. There may be a cap on how much you can add each year to your HSA, but any unused funds will be rolled over to the following year. The funds that are contributed to HSAs do not have an expiration date and Health Savings Accounts can even be used years later, in retirement.

What Your HSA Can Do

Healthcare Uses

Health Savings Accounts can be used for hundreds of approved, health-related expenses in addition to some deductibles and co-insurance accrued from your insurance. Your HSA can help pay for medical and dental expenses such as the following:

• Visits to the doctor and dentist.
• Supplies, equipment, and medication such as: prescriptions, bandages, crutches, breast pumps, hearing aids, etc.
• Braces, exams, fillings, etc. at the dentist.
• Vaccinations, flu shots, and insulin.
• Programs and medications related to alcoholism or drug addiction.
• Visits to the chiropractor, acupuncturist, therapist, and physical therapist.
• Eye exams, eye surgery, contact lenses, and glasses.
• Costs accrued from hospital visits, laboratory fees, tests, etc.
• Improvements made to the home for medically-necessary reasons.
• Travel expenses, lodging, transportation, and parking that is related to medically-necessary procedures.
• Lifetime care, in-home care, nursing home, etc. during retirement.

Other Benefits

Aside from providing you with funds to help pay for health expenses, HSAs also offer you tax breaks in three ways. The funds contributed are pre-taxed or tax-deductible, the money you withdraw from your HSA is tax-free, and the money that stays in your HSA grows deferred from tax. Many HSA programs may even allow you the opportunity to invest in mutual funds to provide you with even more growth over the long-term.

Other advantages to having a Health Savings Account include the ability for others to contribute to your HSA, your HSA is always easy to use, and the money put into your HSA will remain available regardless of a change in insurance plans, employers, or retirement.

Health Savings Accounts can not only offset the expenses that come along with your healthcare but also provide stability for any changes in the future. Whether it’s to plan for unexpected problems, pay for current treatments, or plan for your future retirement, HSAs can provide a world of advantages. To get the health care you need at a fair price, use your HSA with Sesame. Sesame lets you find the health care you need, and your HSA is a perfect way to pay.