How a Health Savings Account (HSA) Plan Works

Looking for health insurance that can save you money? A plan with a health savings account may be right for you. A health savings account, or HSA, is a bank account that lets you save money for health expenses. When paired with an HSA-qualified high-deductible health plan, an HSA can be a smart way to pay for your health care. Let's talk about how an HSA can save you money. HSA-qualified plans tend to be less expensive, so your monthly premium will be lower. But the best thing about an HSA is that it has a lot of tax advantages. There are no taxes on the money put in, the interest you earn, or the money you take out. So instead of reaching into your pocket to pay for your health expenses, you use the tax-free money from your HSA. Now, let's talk about how an HSA works. When you open an HSA, you decide how much money to put in. The IRS has rules for HSAs, including minimum and maximum amounts, so be sure to check on those first. Plus, you can only use your HSA to pay for qualified medical expenses, which typically include co-pays, deductibles, co-insurance, and even some expenses that may not be covered by your health plan, like laser vision correction. The money in your HSA is yours to keep, even if you change health plans or employers. And any leftover money at the end of the year rolls over and continues to earn interest. But remember, if you want to keep contributing to and using your HSA, you must have an HSA-qualified plan. You get both in- and out-of-network coverage. Plus, you don't need referrals or have to select a primary care physician. Once you enroll in the health plan, you can open your HSA with Bank of America or any bank and start saving money. Phew, we covered a lot. Let's review. HSA plans allow you to enjoy the benefits of a PPO plan, save money for health expenses, save taxes, and make your money go further.