Health Savings Accounts: What You Should Know

It’s no secret: health care isn’t cheap. The good news? A Health Savings Account (HSA) is a great way to put aside money to cover the cost of your medical expenses. The best news? An HSA can actually help you save money!

Keep reading to learn what a Health Savings Account is, who should have one, and how to open one at Persons Banking Company.

What is a Health Savings Account?

Simply put, an HSA is used to pay for – you guessed it – health care expenses. 

Money put into an HSA isn’t taxed (making medical costs more affordable) and funds not used within the year aren’t lost. Instead, they roll over to the next year.

An HSA covers deductibles, out-of-pocket costs, and non-covered medical expenses as well as:

  • Preventative care costs
  • Prescription costs
  • Long-term care services
  • Vision expenses
  • Dental expenses

It’s important to note, however, that only individuals with a High Deductible Health Plan can open an HSA.

Who Should Open a Health Savings Account?

Healthy individuals who have a High Deductible Health Plan (HDHP) and want to save for future health care expenses should consider opening a Health Savings Account.

Both self-only and family HDHP plans have minimum deductibles as well as out-of-pocket expense limits that are subject to change annually.

Therefore, call Persons Banking Company to find out what the HDHP requirements are for the year.

How to Open a Health Savings Plan

Persons Banking Company’s knowledgeable experts can help you open an HSA.

We’ll open a checking account and issue the debit card you’ll use to pay for your medical expenses; you will control the money in the account.

When opening your HSA, you’ll need:

  • $50 (minimum) to fund the account
  • A valid I.D
  • Social Security Card
  • Verification of residence (if address on I.D. is incorrect)
  • Beneficiary information, including names, addresses, and social security numbers

Persons Banking Company doesn’t require documentation or proof that you have a HDHP. You are responsible to know if you quality for an HSA.

Related: 4 Personal Savings Account Questions Answered

Wrapping Up

  • A Health Savings Plan (HSA) is used to pay for health care expenses, including preventative care, prescription costs, dental and eye care, and more.
  • Money put into an HSA isn’t taxed, and funds not used within the year aren’t lost. Instead, they roll over to the next year.
  • Only individuals with a High Deductible Health Plan (HDHP) can open an HSA.
  • Both self-only and family HDHP plans have minimum deductibles as well as out-of-pocket expense limits that are subject to change annually.

For more information about HSAs and to open an account, call or visit a Persons Banking Company branch today!

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