Health Savings Accounts (HSAs) originally served to assist those with high deductible health plans (HDHPs) and minimize paying out-of-pocket. However, as time goes on, more and more HSA benefits are being uncovered and utilized. Below are three reasons you could benefit from enrolling in an HSA now:
1. HSAs can grow your savings
HSA contributions are tax-free and, despite common misconceptions, are not subject to a use-it-or-lose-it rule at the end of each plan year like a Flexible Spending Account (FSA) is. This means HSA contributions are tax deductible, can accumulate tax-free, and, when used for eligible medical expenses, can be withdrawn tax-free.
Because these accounts can accrue tax-free, individuals can use their HSA account like a savings account. Many are utilizing it as a form of retirement savings and in fact, companies can offer contributions to employee HSA accounts as an added benefit. Also, your entire contribution is tax deductible, no matter what your income is.
2. Using HSA funds just got easier
Amazon has stepped into the health care market and one of their newest features is accepting HSA dollars to pay for eligible expense purchases. This functionality prevents users from having to purchase eligible items out-of-pocket and submit forms for reimbursement. Previously, there have been online shops meant for eligible expense purchases, but with Amazon, individuals can get everything they need, eligible expense or not, in one location.
The use of HSAs by Amazon also provides a unique opportunity to teach account holders all they can use their HSA for. If you’ve been trying to get into healthy habits, this is a good way to start. Your online shopping habits can now precipitate the purchase of HSA eligible wellness materials like sunscreen or acne treatments.
3. You may already qualify for an HSA
According to Employee Benefit News, over half of Americans with employer-sponsored health plans have an HDHP, which means more than 50% of Americans have access to HSAs and all the benefits. If you are part of the majority with a HDHP, it’s time to look into an HSA because the benefits expand far past just paying for medical services.
If you’re ready to enroll in an HSA or have questions, call NueSynergy today at 855.890.7239. We have a team of account managers who are ready to assist you.