HSA Basics
Health Savings Accounts
Consist of Two Components:
Health Insurance Plan with:
A minimum Single Deductible of $1,400
A minimum Family Deductible of $2,800
It cannot have pre-deductible co-pays for any services. Charges for hospital, surgery, lab, x-ray, diagnostic, office visits and RX are applied to the plan deductible and then typically paid for at 100% after the deductible is met.
Interest Bearing Checking Account
Tax deductible deposits can be made by you and your employer each calendar year. See maximums below.
2019
$3,500 for single coverage
$7,000 for family coverage
2020
$3,550 for single coverage
$7,100 for family coverage
Individuals age 55 and over can make catch up contributions of an additional $1000 per year.
These dollars can be used to pays for medical expenses applied to the plan deductible and are not taxable when used for this purpose.
Money can be withdrawn from the account by writing a check or using the debit card.
Unused dollars simply rollover at year’s end and additional deposits of up to the plan deductible can be made each year. There is no maximum account balance.
An HSA checking account can be established at most banks.