In a time when healthcare costs are skyrocketing, the benefits to having a Health Savings Account are numerous and exceptional. To learn more about what an HSA can do for you, click on any (or all) of the links below:
| Affordability | Control | Easy Access | Flexibility | Ownership |
| Peace of Mind | Portability | Savings | Tax benefits | Rx & MyMedLab |
Affordability back to top
As counterintuitive as it may seem, switching to a health insurance plan with a higher deductible may actually lower your health insurance premiums because it allows you to use a tax-advantaged HSA.
Control back to top
As an HSA account holder, you make all of the decisions regarding:
- How much money to put into the account
- Whether to save the funds in your HSA for future expenses or pay current medical expenses
- Which medical expenses to pay from the account
- Which financial institution will hold the account
- Whether to invest any of the funds in the account
- Which investments to make
You can easily access the funds in your account to pay for qualified medical expenses when they occur with:
- An HSA debit card
- HSA checks
- Local branch withdrawals
Use the funds in your Health Savings Account to pay for current medical expenses including expenses that your insurance may not cover or save the money in your account for future medical needs such as:
- Health Insurance or medical expenses if unemployed
- Medical expenses after retirement (before Medicare)
- Out-of-pocket expenses when covered by Medicare
- Long-term care expenses and insurance
Funds in your HSA remain in the account from year to year similar to an IRA.
There are no “use it or lose it” rules for HSAs
Peace of Mind back to top
Your high deductible insurance and HSA protect you against unexpected medical bills.
Portability back to top
You can keep your HSAs even if you
- Change jobs
- Change your medical coverage
- Become unemployed
- Move to another state
- Change your marital status
You can save the money in your account for future medical expenses and grow the funds through investment earnings.
Tax Benefits back to top
The funds in your Health Savings Account earn interest.
Interest rates vary from bank to bank and it helps to shop around. To comparison shop for Health Savings Accounts offered by various financial institutions, go to www.vimo.com.
The tax savings are as follows:
- Annual contributions are deductible from federal taxes up to the maximum allowable amount.
- Dividends earned are free from federal taxes.
- Qualified withdrawals are free from federal income tax.
The following states currently allow their Health Savings Accounts to have tax-favored status similar to the federal government:
Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maryland, Missouri, Mississippi, New York, Montana, Nebraska, New Mexico, Oklahoma, North Carolina, North Dakota, Pennsylvania, South Carolina, Oregon, Rhode Island, Virginia, Utah and Vermont.
The following states currently have some tax limitations on their Health Savings Accounts:
California, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, Ohio, Washington DC, Wisconsin, West Virginia and Tennessee are states requiring that legislation must be passed before Health Savings Accounts receive a tax benefit at the state level.
New Hampshire and Tennessee impose no tax on income, but tax dividends and interest.
Alabama has not indicated their position regarding state-level tax benefits for HSAs.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming are not affected by federal income tax on HSAs. Other Benefits: back to top
The Patelco Rx Savings Program is available to all cost-conscious consumers to help you save money on brand-name or generic prescription medications. It is FREE to enroll. To learn more about this program, visit www.hpprx.com/patelco or call 727-526-0317.
MyMedLab.com specializes in proactive health care. They provide consumers with quality, convenient, low-cost lab testing with no membership fees to pay or groups to join. Visit their website at www.mymedlab.com or call 888-MY-MedLab.
The information on this page is provided by BISYS Retirement Services and the IRS, and is not intended as tax advice. Please consult a tax professional.
Privacy & Security | Account Disclosure
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Your savings insured to at least $100,000 by National Credit Union Administration, a U.S. Government Agency. |
