How to Use Your Health Savings Account This Year
Amy Barczy
| 2 min read
Amy Barczy is a former brand journalist who authored...
If you have a high-deductible health plan (HDHP, chances are you may have chosen to open a health savings account. A health savings account, or HSA, your very own personal savings account to set aside money for health care expenses today, tomorrow or in retirement. Here are a few tips to help you get the most out of your HSA this year.
Contribute the maximum
Your HSA is a great way to manage costs for common or unexpected health care expenses. So, if you’re able, contribute the maximum amount the IRS allows each year to grow your savings. Or, at a minimum contribute enough to cover your deductible. Visit irs.gov for current contribution limits.
Know what expenses are eligible
You can use money in your HSA to pay for health expenses for yourself and eligible dependents. You can pay onsite with an HSA debit card, which pulls directly from funds saved in your HSA, or pay out-of-pocket and submit a receipt to be reimbursed from your HSA. Eligible expenses include:
- Breast pumps and lactation support supplies
- Certain over-the-counter medications
- Copays
- Contact lenses
- Deductible
- Dental work
- Eyeglasses
- Hearing aids
- Prescribed medication
- Weight-loss program for a disease diagnosed by a physician
For the full list of eligible expenses, see the IRS’ Publication 502.
Invest and grow your contributions
Once your balance reaches a certain amount, you can grow your savings even more through mutual fund investments. HSA contributions can be invested into mutual funds, stocks, or bonds that can compound year after year.
Designate a beneficiary
This ensures your HSA dollars are transferred according to your wishing, without tax consequences, in the event of death. To learn more about HSAs, visit bcbsm.com.
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