When you’re enrolling in your health insurance, you may see new acronyms, such as HSA, or Health Savings Account. It’s popular for health insurance providers to provide you with a health savings account and can be a great way to save up for medical expenses.
What is a Health Savings Account?
An HSA according to HealthCare.gov, is “A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.” Those medical expenses may include deductibles, copayments, and coinsurance. In the end, this can help you lower your overall healthcare costs.
How Does an HSA Work?
Most healthcare providers offer an HSA account, and each year you can decide how much you add to your account. There are government mandated maximums that you cannot exceed each year, for example, the maximum in 2017 was $3,400 for an individual. There are different guidelines for families and those who are over 55. Once your HSA is set up, you’ll receive either checks or a debit card that will be linked to your account. While you can pay your deductibles, copayments, and coinsurance, it does not cover your insurance premiums.
While an HSA account may seem similar to a Flexible Savings Account, or FSA, the main difference is that the money in your HSA will rollover from year to year. You won’t have to worry about losing those savings, and when you reach age 65 and enroll in Medicare, you can still use those savings for all of your out-of-pocket medical expenses.
How Do I Qualify for an HSA?
You qualify for an HSA if you’re enrolled in an high-deductible health insurance plan, or HDHP. The IRS defined an HDHP in 2017 as, “a plan with an out-of-pocket maximum of $6,550 and a minimum deductible of $1,300.”
If you’re looking for the right person to help you start your very own HSA account, contact Thomas Miroballi today. With our help, the process of setting up and starting your HSA account will be easy, and you’ll know you’re investing your money the right way. Contact us today at 630-863-3477, or visit our website to learn more about the services we offer.