Health Savings Accounts (HSAs) let you control your health coverage and enjoy tax incentives as well. An alternative to traditional health insurance, a HSA is a savings product that allows you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
HSAs must be connected to a qualified High Deductible Health Plan (HDHP). Your plan may qualify as an HDHP if your deductible is at least $1,300.00 annually for individual coverage and $2,600.00 annually for family coverage (Maximum annual out-of-pocket expenses for the plan cannot exceed $6,550.00 for individual or $13,100.00 for family coverage).
Once you open an HSA, you may contribute up to the amount of your HDHP deductible but no more than $3,350.00 for individual or $6,750.00 for family coverage. Because a HDHP generally costs less than traditional health coverage costs, the money you save on insurance can be put into your HSA. Persons age 55 and older may also make a catch-up contribution of $1,000.00.
Decisions on how to spend the money are made by you – not a third party or health insurance provider. Unlike employer flexible spending account “use-it-or-lose-it” rules, you can roll over HSA funds from year to year. You can withdraw money tax-free and penalty-free at any time and use it to cover a variety of medical costs, including:
If you are considering setting up a HDHP for 2015, come to us for your HSA. It features:
Contact Member Services at 419.223.9746 to set up your HSA today!