What are the Benefits of a Health Savings Account (HSA)?2 min read • June 22, 2017
HSA benefits are not only measured in financial gain, but also in the unique ability to create flexibility in a stringent healthcare market. With an HSA, you can save for today and tomorrow.
What are the Benefits of a Health Savings Account (HSA)?
You already know what a Health Savings Account (HSA) is (if you need a refresher, here is an in-depth overview), but here is how an HSA benefits your healthcare plan and financial well-being.
Health Savings Account (HSA) Benefits
- Tax-Free Money – Paying for healthcare costs with your HSA mean that you are saving 25%* off the retail cost. Wait, what, how? Three magical words: triple tax benefits. HSAs allow for tax-deductible contributions, tax-free interest and tax-free withdrawals (for medical expenses) which means you can use tax-free money from your HSA to pay for health expenses. This is an incredible way to minimize real health costs increases year over year.
- Save For Today and Tomorrow – The flexibility of a health savings account (HSA) is multi-faceted. Unlike an FSA, there is no “use it or lose it” policy so you can add money today and use it for years to come. To that point, you own your HSA account and can take it with you if you leave your current employer and roll it over into a new account just like a 401k. Most importantly, you are creating long-term savings account to pay for any health expenses throughout your life. Even with Medicare, average healthcare expenses for retirees are $250,000! Having an interest bearing HSA will help mitigate these health costs.
- Sign Up in 5 Minutes – With all of these financial incentives, you would think signing up for an HSA would be hard. We can’t speak for other providers, but it is with Lively. Don’t take our word for it, try it for yourself!
Here are a Few More to Round out These Key Benefits:
- Health Safety Net – There is so much uncertainty with your health that a health savings account (HSA) provides a wonderful balance to the unknown of your healthcare experience. Once you have an HSA, you can use that money to pay for unexpected health expenses and health costs like healthcare coverage if you are in between jobs, Medicare related expenses or any other qualified health expenses, even after you change plans or providers.
- Use it for things you want! Healthcare can be very stringent, but with your health savings account (HSA) it doesn’t have to be. Did you know you can use your HSA to pay for health expenses like massages or acupuncture as long as they are prescribed by a doctor? You can see the full list here. And remember, that includes the 25% “discount” we mentioned above. Are are you really still considering not getting an HSA?
- Retirement – In addition to saving health money for retirement, after 65 years of age, you can use your health savings account (HSA) money non-health related expenses, like anything! It’s just another interest-bearing account similar to your 401k or IRA. What a wonderful perk!
The value of a health savings account (HSA) is not only measured in monetary units but also the flexibility it creates for your health coverage. HSAs provide a unique financial structure for long-term health benefits that moves with your from job to job, plan to plan and throughout your life.
*25% assumes income taxes (both federal and state) of 25% or more per individual or family.