Helping with healthcare expenses
Certain individual health plans can be paired with a Health Savings Account (HSA), giving you more control over how you spend your healthcare dollars. You set up your HSA through the financial institution of your choice.

A HSA is like an IRA for your healthcare. You set aside money in a HSA to pay for eligible out-of-pocket healthcare expenses. For example, you pay all your medical costs until you reach your deductible, but you can use your HSA to reimburse you for these costs.

A number of investment options can help your HSA money grow. Best of all, any money that's left over at the end of the year gets rolled over into the next year. So there's no risk that you'll lose your hard-earned dollars.

Who Can Have an HSA?

Any adult can contribute to an HSA if they:

• Have coverage under an HSA-qualified “High Deductible Health Plan” (HDHP).

• Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long term care insurance are permitted).
• Are not enrolled in Medicare.
• Cannot be claimed as a dependent on someone else’s tax return.

The many advantages of HSA’s

There are many reasons people decide to use HSA’s for their health expenses:

• Tax savings. Reduce your taxable income by contributing to your HSA. Your savings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

• Control. You decide how much to contribute and how to spend it.

• Flexibility. Use your funds to pay current medical expenses or save for future needs.
• Funds are never lost. Carry over unused funds year to year and build savings over time, there are no “use it or lose it” rules for HSA’s.
• Take it with you. The money you save in a HSA is yours. You can take your unused balance with you wherever you go.

Getting reimbursed
Different financial institutions have their own processes for HSA reimbursement, so check with yours for more information.

Use your HSA to pay for these expenses

Check with your bank to find out more about how to get reimbursed for healthcare expenses like these:

• Routine healthcare: office visits, X-rays, lab work, prescriptions

• Hospital expenses: room and board, surgery, supplies

• Dental care: cleaning, fillings, crowns, X-rays

• Vision care: eye exams, eyeglasses, contacts

• Co-pays and coinsurance (the portions of medical bills paid by you, not the health plan)

HSA funds can also be used for alternative or preventive treatments not normally covered by health plans:

• LASIK surgery

• Braces

• Hearing aids

• Over-the-counter drugs

• Tobacco cessation programs

• Chiropractic services

• Long term care insurance

Here are a few banks and/or HSA Administrators to help you get started:

Hiway Federal Credit Union

Wells Fargo

First Horizon MSaver

HSA Bank

If your current plan does not allow you to have a HSA and you would like to learn more about how they work, please contact one of our agents at 952.224.0123 for more information.

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