What is a Health Savings Account?
You are about to start a great new job and the thick benefits package information comes across your desk to complete within the first two weeks.
401K, 403B, life insurance, health insurance, and…HSA. Most people are somewhat knowledgeable of the different retirement options mentioned, but not so familiar with what HSA plans are; let alone where or how to use them.
All you need to be qualified for an HSA account is:
Must be at least 18 years old
Must be covered under a High Deductible Health Plan (HDHP)
You are not currently enrolled in Medicare, TRICARE or TRICARE for Life
What is an HSA?
A Health Savings Account (aka HSA) is a type of savings account that allows you to contribute pre-tax dollars to it every year. Think of this account as an investment in your health and future medical expenses. A lot of the time, these accounts come with a debit card that you can use to pay for medical expenses such as medications, co-pays, dentist visits, or even physical therapy services. Think of it as a pre-loaded card to pay for the treatments you need regardless of insurance approval.
Here is a great list for all the qualified medical expenses that an HSA can be used to pay for: https://www.payflex.com/en/employers-brokers/products-programs-hsa.html.
In 2022 the limit you are able to invest into your HSA account is:
Individuals with HDHP: can contribute up to $3,650 per year
Individuals with family coverage HDHP: can contribute up to $7,300
Why use your HSA?
Your HSA has HUGE tax benefits because the money on your account is pre-tax dollars. This means, your total taxable income will be less than it otherwise would be if you didn’t invest your money in the HSA.
This means, you get to keep more of your hard earned money and invest in your health how you want to!
Because your HSA account is connected to your HDHP, most people would say why not just use my health insurance to cover my health expenses? That's what you're paying for, right? Your HDHP is the limiting factor that may make that choice difficult. Since your healthcare plan has a high deductible, it will cost you more money for your medications. This is where your HSA card comes in handy.
Using your HSA card for physical therapy
Here are Optimize U, we accept HSA cards as a form of payment for physical therapy and wellness treatments. Just like we accept cash and credit cards, your HSA is also an acceptable form of payment.
Let your health savings account allow you to receive the treatment you have been putting off for months or even years.
Schedule a free consultation with us today and see if our services are the right fit for you.