Understanding Health Savings Accounts (HSA)
HSA-Eligible bronze medical plans are popular because they are often the lowest cost option on the Marketplace. In order to open an HSA account at a bank, your medical plan for that year must be HSA-Eligible in the plan design.
The HSA account is an optional account you can set up through a bank and contribute money to on a pre-tax basis. Since I'm not a tax consultant, you can read all about the HSA account at: Click on the 'Learning Center' tab on the web site.
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 is considered 'HSA Eligible'. In 2019, most HSA Bronze plans have a $6500 deductible, which is also the plans Out of Pocket Maximum: Meaning, the plan pays 100% once the deductible is met. Each company I represent offers an HSA-eligible Bronze plan.
Part 2: The HSA Savings Account opened at a bank
I have my own HSA account at Key Bank. They offer no fees if you have an 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 You can learn the annual contribution limit from the link below:
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 for eligible expenses. You can learn what expenses you can use this account for at:
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.
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.
Ask your tax preparer.
WATCH A VIDEO ON HSA ACCOUNTS
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
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