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 info@amsinsure.com 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.

Health Saving Accounts and Obama Care for 2021

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

2021Minimum DeductibleMaximum Out-of-PocketContribution Limit55+ Contribution
FACT: HSA’s aren’t “use it or lose it.” The money that you put in an HSA goes in tax-free. You can keep it, invest it, use it tax-free on medical expenses, withdraw funds from it at a fee, and roll it over into a retirement account when you are ready for Medicare. Only FSA’s, the kind of health savings account you get through your employer, are “use it or lose it.”
NOTE: The IRS sets HSA limits each year, and the limits are then published in the Federal Register. With that noted, I suggest shrm.org for a well-constructed presentation of each year’s HSA rules.

HSA Limits 2021 Summary

Below are the limits for contributions, deductibles, and out-of-pocket maximums for HSAs.

HSA Contribution Limit for 2021

  • Self-only: $3,600
  • Family: $7,200

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.

Minimum Deductible for HSA Eligibility

  • Self-only: $1,400
  • Family: $2,800

NOTE: The minimum deductible, which is the minimum deductible your High Deductible Health Plan must have after cost assistance.

Maximum Out-of-Pocket Limit for HSA Eligibility

  • Self-only: $7,000
  • Family: $14,000

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.” 

Group Plans

Individual Plans