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HDHP (High Deductible Health Plan) will
save you money by allowing you to pay a lower cost for
your health insurance. Using these savings you can fund
your HSA (Health Savings Account).
These savings accumulate until you need them for a qualified
medical expense. You determine how your money is spent
and how to best invest it. It's about saving and controlling
your own money instead of investing in someone elses
business.
So how much does it cost?
An HSA is not something
you purchase; it’s a savings account into which you can deposit money
on a tax-preferred basis. The only product you purchase with an HSA is
a High Deductible Health Plan, an inexpensive plan that will cover you
should your medical expenses exceed the funds you have in your HSA.
What is the Companion
Card
?
The Companion Card is NOT insurance,
so it is simple and easy to use. There are no claim
forms, pre-existing condition exclusions, deductibles,
reimbursement procedures, or waiting periods. When you
present your card to a participating provider, you will
receive a discount at the time of purchase.
What is a Health Savings Account (“HSA”)?
A
Health Savings Account is a savings product that offers a different way to pay for your
health care. HSAs enable you to pay for
current health expenses and save for future qualified medical and
retiree health expenses on a tax-free basis.
You own and you control the money in your HSA. Decisions on how to
spend the money are made by you not a
health insurer. You also decide what types of investments to make
with the money in the account in order to make it grow.
What Is a “High Deductible Health Plan” (HDHP)?
You must have an HDHP if you want to open an HSA. Sometimes referred to
as a “catastrophic” health insurance plan, an HDHP is an inexpensive
health insurance plan that generally doesn’t pay for the first several
thousand dollars of health care expenses but
generally covers you after that. Of course, your HSA is available
to help you pay for the expenses your plan does not cover.
In order to qualify to open an HSA, your HDHP minimum deductible
must be at least $1,000 (self-only coverage) or $2,000 (family
coverage). The annual out-of-pocket (including deductibles and co-pays)
cannot exceed $5,100 (self-only coverage) or $10,200 (family coverage).
Can I get an HSA even if I have other insurance that pays medical bills?
You are only allowed to have auto, dental, vision, disability and long-term care insurance at the same time as an HDHP.
I don’t have health insurance, can I get an HSA?
Unfortunately, you cannot establish and contribute to an HSA unless you have coverage under a HDHP
My employer offers an FSA, can I have both an FSA and an HSA?
You can have both types of accounts, but only under certain
circumstances. General Flexible Spending Arrangements (FSAs) will
probably make you ineligible for an HSA.
My spouse has an FSA or HRA through their employer, can I have HSA?
You cannot have an HSA if your spouse’s FSA or HRA can pay for any of
your medical expenses before your HDHP deductible is met.
Can I start an HSA for my child?
No, you cannot
establish separate accounts for your dependent children, including
children who can legally be claimed as a dependent on your tax return.
How much can I contribute to my HSA each year?
Your annual HSA contribution cannot exceed the deductible of your HDHP.
For example, if you choose a plan with a deductible of $1,000, you may
not deposit more than $1,000 in your HSA for that year.
Do my contributions provide any tax benefits?
Your personal contributions offer you an “above-the-line” deduction. An
"above-the-line" deduction allows you to reduce your taxable income by
the amount you contribute to your HSA.
Does an HSA pay for the same things that regular insurance pays for?
HSA funds can pay for any “qualified medical expense”, even if the expense is not covered by your HDHP.
Are dental and vision care qualified medical expenses under a Health Savings Account?
Yes, as long as these are deductible under the current rules.
Can I use the money in my HSA to pay for medical care for a family member?
Yes, you may withdraw funds to pay for the qualified medical expenses
of yourself, your spouse or a dependent without tax penalty. This is
one of the great advantages of HSAs.
Can I purchase long-term care insurance with money from my HSA?
Yes, if you have tax-qualified long-term care insurance.
Who has control over the money invested in a Health Savings Account?
The account holder controls all decisions over how the money is invested. You can also choose not to invest your funds
Can the funds in an HSA be invested?
Yes, you can
invest the funds in your HSA. The same types of investments permitted
for IRAs are allowed for HSAs, including stocks, bonds, mutual funds,
and certificates of deposit.
What happens to the money in my HSA when I die?
If married, your spouse becomes the owner of the HSA when you die. If unmarried, the HSA becomes part of your taxable estate.
The above FAQ
was gathered from the U.S.
Treasury Dept. You
can find more information there.
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