Health Savings Account Benefits: What's in it for YOU?

Determining the best healthcare coverage plan can be difficult. Often, consumers choose a healthcare plan without really knowing what the upcoming year has in store for their family’s health.

That kind of goes without saying, right? 

We are, after all, only human. We can’t predict the future (as handy as that would be). So we’re left to navigate through life’s surprises to the best of our abilities. Because of that, there are times when we find ourselves paying out-of-pocket expenses that may not be covered by our health insurance, or are expenses we must pay before reaching our deductibles.

It’s the reality of living without the gift of foresight: Sometimes our best efforts don’t yield the best results. What can you do? 

Well, while we may not be able to grant any prescient abilities, we CAN offer some advice.

When consumers enroll in a high deductible health plan, they are eligible to open a health savings account (HSA), which serves as a personal savings account to be used for qualified healthcare expenses. A health savings account can supplement health insurance and better serve consumers in the long run.

Interestingly, even though HSA contributions have increased, account holders aren’t using the accounts in ways to reach the full benefits. We think it’s high time to change that. After all, the benefits are there – all that’s needed is the knowledge to maximize them. 

The following is a list of the top three benefits available through an accompanying HSA that aren’t offered with other savings accounts:

·      Multiple Tax Benefits:All contributions made to your HSA are pre-tax deductions, and the money within the account grows tax-free. And when the time comes to make qualified medical expenses, the money used is also tax-free. 

·      ‘Catch-up’ Contributions:If you are age 55 or older, you can make contributions up to $1,000 in ‘catch-up contributions’ to help save for medical expenses in the future – like during retirement. 

·      Flexible Contributions:Regardless of whether you experience a qualifying event, such as a change in marital status or the number of dependents on your health plan, you can adjust the contribution election plan throughout the year.  

We may not be able to see the future, but that doesn’t mean we’re left to go through life ‘running blind’. If you’re in the process of determining the best healthcare action plan, a CFP® professional can help you weigh the benefits of each plan, as well as accompanying savings account, to ensure you’re covered for immediate and future health costs.