A Health Savings Account (HSA) is kind of like a bank account that’s used only for qualified medical expenses. Paired with a high-deductible health plan, this tax-free money goes into your account to pay for the medical services that you receive – instead of paying more in premiums for benefits that you may not use.
You can set up a Health Savings Account through a bank or financial institution. BlueCross has teamed up with several financial partners to help you set up your account. Your employer may also have financial partners that can help. Once set up, you and/or your employer can contribute funds up to the amount allowed each year.
As long as there are funds saved in your account, you’ll use the HSA along with your insurance to pay for your medical expenses. Your debit card makes it easy to pay for services when you visit the doctor, dentist or pharmacist. You can always withdraw funds anytime, for any purpose, but if the money is not used for qualified medical expenses, it must be reported as income on your taxes.
Best of all, your Health Savings Account is your money - it stays with you if you change jobs and it’s even an inheritable asset. Balances in the account carry over from year to year, and the money earns tax-free interest.