A Health Savings Account (HSA) is a medical savings account that is made available to you when you’re enrolled in a high deductible health insurance plan. HSA’s are flexible plans that allow you to take control of your financial and health needs. HSA’s have a plethora of benefits. Here are the top 3 benefits of an HSA account.
HSA’s offer triple tax advantages.
The current contribution limit to HSA accounts has been capped at 3,600 by the IRS in 2021. Your contributions are pretax which means that it reduces your taxable income. The funds in your HSA account are tax-free. Using your money in your account on medical expenses and withdrawals is also tax-free.
HSA’s are stand-alone accounts not directly tied to your employer
Although you enroll in an HSA through your employer or place of work it is not dependent on your employment. You own the account and not the company you work for, so it is your money regardless of employment status. Meaning if you are laid off or quit the money is yours to keep and use on medical expenses. Which is a huge financial help in the event of unforeseen health care costs or expenses.
You can use your HSA dollars on healthcare and medical costs.
We know that healthcare costs can be outrageous, and the costs of office visits and co-payments vary by insurance and by specialty type. You can use your HSA funds on expenses such as office visits, copayments, telehealth services, over-the-counter medical products, prescriptions, and more. You can also rest easy knowing that you don’t lose the dollars in your account if you don’t use them. The balance rolls over year to year. Learn more about Health Savings accounts here.
An HSA is a great option for certain individuals depending on their needs. Speak to a Standard Health representative to help determine which type of health insurance is right for you. We are always happy to help you get the coverage you need! Call us today.