A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.
Some health insurance companies offer HSAs for their HDHPs. Check with your company. You can also open an HSA through some banks and other financial institutions. Contact us at firstname.lastname@example.org for more information:
Example of some qualifying expense for an HSA medical plan;
Medical Expenses: Hearing aids, Obstetrical expenses, Sleep deprivation treatment, Acupuncture, Psychiatric care, Eye exams, eyeglasses, equipment and materials, telemedicine
Vision Care: Reading and safety glasses, Contact lenses, materials and equipment, Vision correction procedures; laser eye surgery including Lasik, Braille books and magazines
Dental Care: Artificial teeth, Dentures and denture adhesives, Guards to prevent teeth grinding, Orthodontia
Other: Prescription medications, Co-insurance amounts, co-payments and deductibles, Shipping and handling fees for medical products, Taxes on medical services and products, Medical records charges
Check with your plan for all covered and non-covered expenses.
We cover everything you need to know about or 2021, including how HSAs work with health plans under the Affordable Care Act.
TIP: The Affordable Care Act is sometimes called “ObamaCare” or the “ACA” for short. Thus, this page is about HSAs and how they work with Obama Care / ACA plans.HSA Chart for 2021
Below are the limits for contributions, deductibles, and out-of-pocket maximums for HSAs.
NOTE: 55 plus can contribute an extra $1,000.
NOTE: The contribution limit, which is the total you can contribute in 2018 if you are under 55. Those 55 or older can contribute an extra $1,000, and this is shown in the fourth column.
NOTE: The minimum deductible, which is the minimum deductible your High Deductible Health Plan must have after cost assistance.
NOTE: The maximum out-of-pocket is the highest maximum a plan can have to qualify for an HSA.
TIP: The maximums are slightly lower on HSA compatible plans then they are in general on health plans. This has to do with the fact that the rates are raised by different mecha
Get a QUOTE: www.amsinsure.com. The difference allows for non-HSA compatible high deductible plans. Thus, if you want an HSA, make sure your plan is “HSA Eligible.”