![]() You’ll generally receive an HSA debit card you can use to make purchases. ![]() Once funded, you can use your HSA to pay for eligible medical expenses like doctor visits, prescription drugs, dental care and vision care. If you have a marketplace plan or can’t contribute through your employer, you can make post-tax contributions and deduct eligible contributions on your tax return If you have a HDHP through your employer, you can make pretax contributions into your account through payroll. You’re eligible for a health savings account if you have a high-deductible health insurance plan. Be sure to factor in the costs of copays and the out-of-pocket maximum when deciding between plans. It’s important to consider whether lower monthly premiums are worth the steep deductible based on your finances and health. However, you could pay more with a HDHP if you have frequent doctors’ appointments or multiple family members needing health services throughout the year. An HDHP often costs less per month than a traditional plan, making it an attractive option to save money. Out-of-pocket health expenses for an HDHP can’t exceed $3,850 for individuals and $7,750 for families. After reaching your deductible, you typically pay copays for health services and your insurance covers the balance (though plan stipulations may vary).įor 2023, a HDHP is a healthcare plan with a deductible of $1,500 or more for an individual and $3,000 or more for a family, according to the IRS. What is a high-deductible health plan?Ī high-deductible health plan has a higher deductible than a traditional health insurance plan, meaning you could pay more out-of-pocket before you reach your plan’s deductible. However, since you have to enroll in a high-deductible health care plan to qualify, the benefits of an HSA may not always outweigh the health care plan’s high deductible costs. Paired with a high-deductible health insurance plan, these tax-advantaged accounts let you contribute pretax dollars (or deduct contributions from your taxes) towards eligible medical expenses.Īn HSA offers a unique way for individuals to manage their healthcare costs - you can invest this money to grow it over time, roll over any unused funds and even contribute money after taxes. See IRS Publications 502 and 969 for more details.HSAs are a type of health savings account designed to help you pay for medical expenses. Seeing eye dog ( buying, training and maintaining)ġ Restrictions may apply.Treatment for alcohol or drug dependency.face masks, disposable gloves, hand sanitizer, sanitizing wipes, etc.) Personal Protective Equipment (PPE) for the primary purpose of preventing the spread of COVID-19 (i.e.cold treatments, pain relievers, sinus medications, etc.) ![]()
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