What is a Health Savings Account (HSA)?

Benefits of Having an HSA

There are many benefits to having an HSA. It is like a savings account that you can only use for certain health-related expenses. The contributions that you make to your HSA are tax-free and earn tax-free interest over time. This means you wouldn't have to pay out-of-pocket for most medical expenses. An HSA is similar to a Flexible Spending Account (FSA), however, the money you have in your HSA account is yours and you do not lose funds at the end of the year. Currently, as of 2022, you can contribute $3,650 for individuals or $7,300 for families with those who have a High Deductible Health Plan (HDHP - a health plan with an annual deductible of $1,400 or more for individuals /or $2,800 for families).

Using your HSA is as easy as using your bank's debit card. And if you don't want to carry a card you can pay out-of-pocket and submit reimbursements from your HSA later. You can use your HSA for qualified services (copays) at your Doctor's office, Dentist's office, or Optometrist's office. It can also be used for prescriptions, non-prescription over-the-counter meds, and certain medical equipment at any local pharmacy, big box stores, and online pharmacies. Another cool thing is you can also use it for HSA-eligible products such as; medicated sunburn treatments, adult diapers, nutritional counseling, and psychological & psychiatric care services.

There are restrictions however, you are not able to use your HSA account for dues or fees, which include late fees, missed appointment fees, contract fees, finance charges, and union dues. It cannot be used on any expenses related to childcare, fitness clubs, and any nutritional guidelines. Personal care items such as toothbrushes, shampoo, razors, and nail products are also ineligible. However, your HSA may be able to pay for weight loss programs, cosmetic surgeries, and even massages if it is something prescribed by your doctor.

Want to learn more about how you can enjoy automatic prescription drug savings with your pre-tax HSA dollars or your debit card?

HSARx can help manage your prescription costs with ease! Register for free to experience the convenience of automatic payments and savings for your prescription drugs.

Disclaimer: HSARx is not offering HSA accounts, HSARx is not responsible for any HSA account compliance obligations, and it is up to the individual to administer their own HSA account.

Thank you for your inquiry and please let us know if we can assist you with any other questions. 😊