Health Savings Account (HSA)

• Office visit copayments. 
  

• Hospital bills. 

• First aid supplies like bandages or health monitoring equipment. 

• Over-the-counter drugs and prescription medications. 

• Dental care. 

• Vision care, including eye exams, contacts and eyeglasses. 

• Maternity and fertility services. 

• Physical therapy. 

• Therapy or drug addiction treatment. 

• X-rays. 

• Complementary treatments, such as chiropractic therapy. 

Those that qualify are able to save the extra money they'd otherwise spend on higher premiums from lower deductible health plans in a tax-free, interest-bearing HSA. Whether you use these funds for your family's current medical expenses or to plan for the future, an HSA offers the potential for increased cost savings. 

To qualify, you need to have a high-deductible health insurance plan (HDHP). You can't have any other health insurance or be claimed as a dependent on someone else's tax return, and your HDHP needs to be below the out-of-pocket maximum. 

There are annual limits on the amount you can contribute to an HSA. These vary by year. In 2024, if you have individual coverage, you can contribute a maximum of $4,150. If you have family coverage, the maximum contribution allowed is $8,300. 

An HSA can be an interest-bearing health account used for qualifying medical expenses, with the IRS's maximum contribution limits set annually. The HSA can only be used with a qualifying high-deductible health plan (HDHP), traditionally known for lower premiums and high-deductibles. A qualifying HDHP has a minimum deductible and out-of-pocket maximum that is set annually by the IRS.

To qualify for an HSA, you must meet the following criteria:

1. You’re covered by a qualifying High-Deductible Health Plan (HDHP).
2. The HDHP is your only health insurance coverage. Meaning, you don’t have supplemental coverage from a spouse or other family member (dental and vision is fine).
3. You don’t have or use a General Purpose FSA (Flexible Spending Account). But, you are allowed to have a Limited Purpose FSA for dental, vision, or a Dependent Care FSA. Note: You can have an existing HSA and open an FSA. Your HSA funds will remain, but you cannot continue contributing to the health savings account.
4. No one else can claim you as a dependent on their tax return.
5. You’re between the ages of 18 and 65 and not enrolled in or eligible for Medicare (Part A and Part B) or Medicaid.