UNDERSTANDING HEALTH PLANS &
HSA SAVINGS ACCOUNTS (HSA) 

 

  In 2018 may people will consider buying a Standard Bronze plan, which is a high-deductible medical plan with a $6550 deductible, and a $6550 out of pocket maximum.  The only covered services before the deductible is met is an annual exam and some tests such as a Mammogram, Pap, and routine colonoscopy if you are over age 50.

 

Part 1: The HSA-Eligible Medical Plan

   Before you can open an HSA account at a bank, the law requires that your medical plan design be considered 'HSA Eligible'.  The Standard Bronze design meets this criteria.  Kaiser also has a direct-written plan with a $2800 deductible option.  The idea of buying the lower cost medical plan is to take the money you are saving and put it into an HSA account to pay for your out of pocket costs such as doctor visits, ER and Urgent Care, medications.   You can also use your HSA account for dental, vision, and alternative care provider expenses.        

 

Part 2:  The HSA Savings Account opened at a bank

      I have my HSA account at Key Bank.  They offer no fees if you have any account with them.  Open a free checking account, and get your HSA account at no cost to you.

. I know Advantis Credit Union offer HSA accounts, as does the online bank www.hsabank.com  

PRACTICAL: SO HOW DO I USE AN HSA ACCOUNT?

    Once you open an account and put some money in to start, they give you a debit/visa card.  I just use this to pay for any out of pocket medical, dental, vision, pharmacy, or alternative care provider.  If you forget to use the card, you can later reimburse yourself from your account.   In 2017 I used my HSA account for a dental visit and my Lasik surgery in March, as well as for 1 chiropractic visit.

 

HERE ARE SOME COMMON ANSWERS TO QUESTIONS

CAN ANYONE OPEN A HEALTH SAVING ACCOUNT?

   No, you must have a 'High deductible health plan (HDHP), or a plan that says it is HSA eligible.  There is also no 'joint HSA' accounts.  You must open one for each spouse, however you can designate your spouse as a authorized signer on your account.   

Am I required to put money into an HSA account?

  No, you can contribute up to the guideline limits, which you can view at the link:

http://www.hsabank.com/hsabank/education/irs-guidelines-and-eligible-expenses

If you don't use the money in your HSA account will you lose it?

  No, this is true of a Flexible Savings Accounts (FSA), not with an HSA.  Your unused funds roll over each year.  I have over $11,000 in my account, so if I have that big $6550 out of pocket year I'm ready to pay the bill.

WHERE ON YOUR TAXES DO YOU GET THAT DIRECT TAX-REDUCTION.

   For 2016 you can see deduct HSA contributions on line 25 of your 1040.  You only get this deduction if you file a 1040 tax return.

https://www.irs.gov/pub/irs-pdf/f1040.pdf

 FOR WHAT EXPENSES CAN YOU USE YOUR HSA ACCOUNT FOR?


    To see a list of 2018 IRS qualified Medical Expenses, click on the link below:

http://hsabank.com/~/media/files/eligible_medical_expenses

 

WATCH A VIDEO ON HSA ACCOUNTS

https://www.youtube.com/watch?time_continue=11&v=hGn1NJHGv5s

https://www.youtube.com/watch?v=s8SFZf3MLCM

 

Disclaimer:  HSA information is subject to change.  Please consult your tax advisor regarding HSA tax consequences, or the bank you intend to put your HSA money with.   I am only competent to advise you on the medical portion of the plan. 

 

For more information or to apply for coverage, please visit my link "Individual Medical" or call Dan Neils 503-650-4325  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 HSA Plans Compared

Click filename below to access file

HSA-Eligible_Plans_Compared2.pdf