Advantages of Health Savings Accounts

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Advantages of Health Savings Accounts

Health savings accounts come with several advantages.

Security

HSA-qualified insurance and the HSA account provide protection against high or unexpected medical bills. You also will receive the benefit of the lower fees negotiated between your insurance carrier and your health care providers, instead of paying the full charges. All policies also cover preventive care services to help you maintain your health and avoid illness and disease.

Affordability

HSA-qualified insurance makes health insurance more affordable with premiums. The savings can be substantial, which can help you fund your HSA account.

Flexibility

HSA funds can pay for current medical expenses, including expenses that insurance may not cover. Funds can also be saved for future needs, such as:

• Health insurance premiums or medical expenses if no longer working (such as COBRA or when unemployed or retired but not yet on Medicare)
• Out-of-pocket expenses and premiums (except for Medigap premiums) when covered by Medicare
• Long-term care expenses and insurance

Control

You make all the decisions about your HSA account. You can make choices that are best for you, and physicians can be more effective patient advocates, with less intrusion from insurance companies.

Portability

HSA accounts are completely portable. You can keep and take your account with you even if you:

• Change jobs or become unemployed
• Change your medical coverage or marital status
• Move to another state

Ownership

You own the funds in your account. The funds in the account remain and roll over from year to year, just like an IRA. There are no "use it or lose it" rules for HSAs.

Tax savings

HSAs provide three tax savings benefits:

• tax deductions when you contribute
• tax-free earnings through investment
• tax-free withdrawals for certain qualified medical expenses (withdrawals for non-qualified expenses will be taxed and penalized)