What Are The Benefits Of An HSA?
HSA benefits are changing rapidly. Be sure to check with your employer for the most up to date regulations on how these benefits can be used.
Qualifying For An HSA
You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
- You have no other health coverage except what is permitted under another health coverage.
- You aren’t enrolled in Medicare.
- You can’t be claimed as a dependent on someone else’s federal tax return.
- Each spouse who is an eligible individual who wants an HSA must open a separate HSA. You can’t have a joint HSA.
High Deductible Health Plan (HDHP)
- A higher annual deductible than typical health plans
- A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts but don’t include premiums.
An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Preventive care includes, but isn’t limited to, the following. Services covered under HDHP plan change every year. Be sure to thoroughly review each option prior to signing up for a plan.
- Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals.
- Routine prenatal and well-child care.
- Child and adult immunizations.
- Tobacco cessation programs.
- Obesity weight-loss programs.
- Screening services including cancer, heart, and vascular diseases, infectious diseases. mental health conditions, substance abuse, metabolic, nutritional, and endocrine conditions, musculoskeletal disorders, obstetric and gynecological conditions, pediatric conditions, and vision and hearing disorders.
A Few Fast Facts About FSAs
- FSAs annual limits change every year. If you’re married, your spouse can put money in an FSA with their employer too.
- You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you’re married, and any qualifying dependent.
- You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.
- You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor’s prescription. Reimbursements for insulin are allowed without a prescription.
- FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.
FSA Limits, Grace Periods, and Carry-overs
- It can provide a “grace period” of up to 2 ½ extra months to use the money in your FSA.
- It can allow you to carry over up to a set amount per year to use in the following year.
Monica Stynchula – CEO / REUNIONCare, Inc.