HSA FAQs 

What is an HSA Account?

Why would I want to establish an HSA Account?

What counts as a qualified medical expense?

How should I go about finding an HSA eligible high deductible health plan?

How much will I be free to contribute to my HSA Account each year?

What Investment options will I have with my HSA Account?

How safe will my money be in an HSA?

How will I be able to use my HSA Account’s funds?

What fees can I expect from my HSA

What is an HSA Account?

HSAs or health savings accounts are a relatively new way for you pay for major medical procedures. In 2003, Congress passed a law that allows consumers to establish and use the savings accounts known as HSAs tax-free to pay for major medical procedures, save for retirement, and even invest.

Why would I want to establish an HSA Account?

The freedom to make tax-free investments and use the proceeds for major medical expenses makes the Health Savings Account very attractive. HSA Accounts typically carry a higher than average deductible, but a lower monthly payment – two things that can come in handy.

What counts as a qualified medical expense?

Qualified medical expenses are defined as: healthcare insurance premiums, co-payments or co-insurance rates, long term care costs, dental health costs, vision care costs, prescriptions medications and psychiatric care.

How should I go about finding an HSA eligible high deductible health plan?

HSA eligible insurance plans require higher than average deductibles. In order for a health plan to be HSA eligible, it must have at least a $1100.00 individual deductible and a $2200.00 family deductible.

How much will I be free to contribute to my HSA Account each year?

Each year if you have an individual plan, you’ll be allowed to contribute either $2900.00 or the amount of your insurance plan’s deductible amount, whichever is lower. If you have a family plan, you’ll be allowed to contribute $5800.00

What Investment options will I have with my HSA Account?

You’ll have four basic choices if you decide to buy into an HSA plan: 1) a CD type account, 2) a Money Market Account, 3) a Mutual funds account or 4) an Interest bearing account.

How safe will my money be in an HSA?

The funds you contribute to your HSA plan will be held in trust and administrated by your bank or your insurance company—according to which of the four investment options, mentioned above, you’ve selected.

How will I be able to use my HSA Account’s funds?

Generally speaking when you open a Health Savings Account, you’ll receive either a debit card or checkbook from your HSA Plan administrator. When you need cash to pay for your medical expenses, you can use either. You won’t be required to get authorization for these services beforehand.

What fees can I expect from my HSA?

The answer to this will largely depend on who’s administrating your HSA Plan. There may be a sign-up fee, a fee on checks, a monthly fee or a fee on transactions for withdrawals from your HSA.