Is an HSA right for me?If you are not reaping the benefits of a Health Savings Account you probably should take a moment to look over some of the things an HSA plan could do for you.HSA’s work alongside a high deductible health insurance plan either through an employer sponsored health plan or an individual plan of your own. In 2014 your health insurance plan must have a deductible of at least $1,250.00 for an individual and at least $2,500.00 for a family.Once you have a “high deductible” health insurance plan in place you then can then open an HSA plan through any local banking institution of your choice.You then put money into your HSA account. This money can now be used tax free to pay for your medical deductibles, prescriptions, co-pays and other medical expenses. This year in 2014 you can contribute up to $3,300.00 per year as an individual and up to $6,550.00 per year as a family. Note that you do not have to put that much money into your HSA account but you can put up to that amount and have it sheltered.The amount you contribute to your HSA account t is deducted from your income as “adjusted Gross Income” on your taxes and therefore is not taxed.You can use HSA’s for almost anything related to your health, minus your health insurance premiums.Some examples of things you can pay for with your HSA account include:

• Acupuncture
• Dental treatment (x-rays, fillings, extractions, dentures, braces, etc.)
• Eye glasses
• Hearing aids
• Over the counter medications
• Insulin
• Nursing services
• Chiropractic services
• Birth control pills
• Babysitting and childcare
• Health club dues

For a list of more HSA qualified items visit https://www.premera.com/documents/022856.pdfAlso, health insurance premiums are not considered a qualified medical expense although there are some types of insurance premiums that DO qualify in certain situations and those include:

• Continuation coverage of COBRA benefits
• Some long term care insurance contracts
• Any health insurance plan maintained while an individual is receiving unemployment benefits
• If you are over the age of 65 you can use HSA money to pay for Medicare Part D premiums but NOT Medicare supplement premiums.

Another great benefit of an HSA account is that it can help become an investment account for your future. Any unused funds that you wish to roll over into a retirement account can be done without penalty. It can then be used for normal living expenses and not medical expenses.If you have any questions about how high deductible health insurance plans work, don’t hesitate to reach out to us.