If you’ve come across the term HSA during an annual healthcare enrollment period, you may have been confused about how you might best use this type of account, or if it’s worth opting into at all. More and more people are utilizing their Health Savings Account (HSA) as a long-term financial tool as well as a healthcare plan—but why?
HSAs are tax-advantaged savings accounts that allow individuals to earmark money specifically for medical expenses.
Why Set Up an HSA?
HSAs may be a worthwhile choice for two primary reasons. The first is to have a more hands-on approach to healthcare choices. The second is to take advantage of the tax implications.
What Medical Expenses Qualify Under an HSA?
HSAs can be used for various types of medical expenses, such as:
- Deductibles
- Medical Services
- Prescription Medications
- Over-the-Counter Items
- Long-Term Care Expenses
More details about an HSA
If you’re eligible and enrolled in a qualified HDHP, you can open an HSA much like you would a traditional bank account.
Unlike a Flexible Spending Account (FSA), HSAs do not expire.
In the last decade, HSAs have grown significantly in popularity. According to the Consumer Financial Protection Bureau, over 36 million HSAs exist today, with a combined value exceeding $116 billion—an 500% increase in value since 2013.
Read the full article here.
After carefully evaluating your health needs, income, and potential out-of-pocket costs, SouthEast Bank can be a helpful partner. Explore our online resources, then stop by your local branch to open a Health Savings account at your convenience.
Your financial journey starts with SouthEast Bank. Olivia Johnson is marketing strategist for Southeast Bank.
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