Health Savings Accounts (HSAs): Things You Need To Know

Healthcare is universal because we’ll need it at some point in our lives. So with the rising cost of health care and health insurance premiums each year, it’s no surprise that people are always searching for ways to save money on medical expenses. That’s where the Health Savings Account comes in.

What Is A Health Savings Account?

HSA is a tax-free saving that you can use to pay for medical expenses now and in the future. By using untaxed funds in a health savings account to pay for deductibles, coinsurance, copayments, and other expenses, you will be able to lower your overall healthcare costs.

Who Is Eligible For HSA?

You must meet specific requirements to use an HSA. In numerous cases, you will need to ensure you meet the following criteria:

• You are a US taxpayer.
• You are not enrolled in TRICARE.
• You are currently enrolled in HDHP.
• You are not covered by non-HDHP health coverage.
• You have not received any medical benefits from IHS or the VA.

How Does An HSA Work?

You need to enroll in HDHP, a type of plan specified by Congress with higher deductibles and lower premiums, to use HSA. Once enrolled in a qualified HDHP, you can set up an HSA account and add money to your HSA through direct deposit from another bank account, paycheck, or income source. You can then use this money for qualified medical and health expenses.