Your enrollment in the PatriotCare Premium Plan qualifies you for an Health Savings Account! Setting up an health savings account has never been easier...we've partnered with Accuplan and American Estate & Trust Bank to provide you with easy way to start saving on your medical out of pocket expenses.
An HSA is a kind of personal savings account that you can open to cover specific medical expenses. If you use an HSA to pay for eligible medical expenses such as deductibles, copayments, coinsurance, and more, you can save money and take it out tax free. (In general, insurance premiums aren't regarded as acceptable medical costs. ). If you have healthcare benefits through an HSA-eligible plan, also known as a High Deductible Health Plan (HDHP), you are able to make contributions to an HSA.
Monthly premiums for HSA-eligible plans are typically lower, but before your insurance company begins to pay its share, you are responsible for paying a larger portion of your out-of-pocket medical expenses. Medicare coverage and plans that pay their portion of covered services after you have paid deductibles or copayments (referred to as "first dollar coverage") prohibit you from contributing to an HSA. HSAs are provided by banks, credit unions, and other lenders.
As long as the funds are used for approved out-of-pocket medical expenses the money you contribute to the account is tax free.
Common approved medical expenses include items and services such as:
If you have not done so, you can still contribute for 2024 as long as it is done by 12/31/2024.
The maximum contribution amounts for 2024 are $4,150 for an individual and $8,300 for a family.
Maximum contribution amounts for 2025 are $4,300 for an individual and $8,550 for a family
Person 55 and older may contribute an additional $1,000 "catch-up" contribution for 2024 and 2025.HSA money is yours to keep. Unlike a flexible spending account (FSA), unused money in your HSA isn't forfeited at the end of the year; it continues to grow, tax-deferred.
A personal HSA contributions using after-tax money may be federal income tax-deductible. If you have an HSA through your employer, you can make pre-tax payroll contributions—this type of contribution saves more on taxes than tax-deductible after-tax contributions.
Spending your HSA money on qualified medical expenses is free of federal income taxes.
If you invest some or all of your HSA money, any growth is also tax-free.