what is the purpose of a health savings account

The right health savings account (HSA) strategy can help your organization control expenses. It can also help employees plan, save, and pay for their personal. Health savings accounts (HSAs) let you save money to cover the cost of a wide range of qualified medical expenses. HSAs offer a trio of tax. It is solely your responsibility to retain receipts and records of reimbursements for tax purposes. A full list of eligible expenses can be found on the U.S.

What is the purpose of a health savings account -

Health savings accounts (HSAs)

Overview

A health savings account (HSA) is a tax-advantaged account, available exclusively to crew members enrolled in an HSA qualified medical plan, to help pay for health care expenses. The HSA offers financial benefits beyond the tax advantages, like continuous rollover and the ability to invest your balance. The HSA also offers flexibility in how and when you can use the account. These reasons make the HSA is a great vehicle to help crew save for current and future health care expenses.

Advantages of participating in an HSA

Vanguard contributionVanguard makes contributions to your HSA (at HealthEquity) to help increase your savings potential.
Triple tax advantagesThe HSA offers triple tax advantages not available through any other type of medical account:
  • HSA contributions are not taxed or tax-deductible*
  • Account earnings made through interest and investing are not taxed
  • Withdrawals use for qualified medical expense are not taxed.
Investment opportunityYou can invest your balance in select Vanguard funds to help your balance grow.
FlexibilityThe HSA is an individual account in your name and you can direct when and how you receive reimbursement from the account.
  • You can use the account to pay for out-of-pocket health care expenses for yourself or any of your tax dependents–even if your dependents are not covered under your medical plan.
  • Unused balances rollover every year, so you never lose your balance! Also, if you retire or leave Vanguard for other employment, you can bring your HSA with you.
  • You can change your HSA contribution throughout the year. If you’d like to increase, decrease, or stop your pre-tax HSA payroll contributions based on your changing health care or savings needs, you can do so. Your contribution change will be effective the first day of the following month.
Save for retirementIt’s expected that an average couple will need nearly $300,000 in retirement to pay for health care expenses. Using funds saved in your HSA for these types of expenses prevents you from tapping into other retirement savings to pay for health care. This is why the HSA is considered a great supplement to Vanguard's Retirement and Savings Plan in planning for retirement expenses.
  • If don’t need your HSA for health care expenses, you can access your balance to pay for other types of expenses. Just note that any withdrawals for expenses other than eligible health care expenses will be taxed as regular income, and you will be subject to paying a 20% penalty.
  • After age 65, you can use the funds in your HSA for any purpose. Withdrawals for non-qualified medical expenses will be subject to income tax, but no penalty will be applied.
* California and New Jersey do not allow tax-free employer or employee contributions.

Vanguard will pay your HealthEquity annual administration fee as long as you remain employed at Vanguard and enrolled in one of the HSA plans.

Annual contribution limits

You can find the annual contribution limits for an HSA here. This page also highlights how Vanguard's employer contributions and your personal contributions all count toward the annual HSA contribution limits.

HealthEquity

HealthEquity is Vanguard's HSA vendor partner. All Vanguard and crew HSA contributions will be deposited into your HSA with HealthEquity.

Soon after you elect and HSA-qualified medical plan, you will receive a welcome packet from HealthEquity. This packet will provide details on tools and resources available to HSA account holders. It also includes instructions on how to log in to your already-established HSA and how to transfer existing HSA balances to HealthEquity, if you choose do to so.

Accessing your account

You direct when and how you receive reimbursement from your HSA, and HealthEquity offers simple, transparent ways to access and manage the funds. You can:

  • Pay for health care services with HealthEquity's Visa debit card.
  • Use the online portal to:
    • Set up how your contributions are managed. Contributions can be kept as cash, invested, or both.
    • Request reimbursement.
    • Send payments directly to a health care provider.
    • Designate or update your beneficiaries.
    • Request a distribution, a transfer, or a rollover.
  • Manage your account with HealthEquity's mobile app.
  • Once you receive your welcome packet, you can access your account at any time. When accessing your account for the first time, you'll be asked to set up a user name and password.

For more information

If you have questions, or need help navigating your account, contact HealthEquity 24/7 at 866-346-5800 or visit HealthEquity's resource site. If you need additional assistance, please create a case or call Crew Central™ at Ext. 1CREW.

 

Источник: https://crewconnect.vanguard.com/totalrewards/benefits/healthandwellness/medical/hsa_overview.html

Health savings account

American tax-advantaged medical savings account

This article is about medical savings accounts in the United States. For international uses, see medical savings account.

A health savings account (HSA) is a tax-advantagedmedical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP).[1][2] The funds contributed to an account are not subject to federal income tax at the time of deposit.[3] Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.

HSA funds may be used to pay for qualified medical expenses at any time without federal tax liability or penalty. Beginning in early 2011 over-the-counter medications could not be paid with an HSA without a doctor's prescription, although that requirement was lifted as of January 1, 2020.[4][5] Withdrawals for non-medical expenses are treated very similarly to those in an individual retirement account (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. The accounts are a component of consumer-driven health care.

Proponents of HSAs believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses, allow the patient to receive needed care without a gatekeeper to determine what benefits are allowed, and make consumers more responsible for their own health care choices through the required high-deductible health plan.[1] Opponents observe that the structure of HSAs complicates the decision of whether to obtain medical treatment, by setting it against tax liability and retirement-saving goals. There is also debate about consumer satisfaction with these plans.

History[edit]

HSAs were established as part of the Medicare Prescription Drug, Improvement, and Modernization Act, which included the enactment of Internal Revenue Code section 223,[3] effective for tax years beginning after December 31, 2003, signed into law by President George W. Bush on December 8, 2003. They were developed to replace the medical savings account system.

A survey of employers published by the Kaiser Family Foundation in September 2008 found that 8% of covered workers were enrolled in a consumer-driven health plan (including both HSAs and Health Reimbursement Accounts), up from 4% in 2006. The study found that roughly 10% of firms offered such plans to their workers. Large firms were more likely to offer a high-deductible plan (18%), but enrollment was higher in small firms (8% of covered workers, versus 4% in larger firms).[6] As of 2012, these numbers had increased. Approximately 31% of firms offering health insurance offered an HSA (26%) or an HRA (5%) option. Large firms (38%) were somewhat more likely than small (31%) firms to offer such options. 11% of covered workers were in HSAs, while 8% were in HRAs. In small companies, 24% were in high-deductible health plans vs 17% in larger firms.[7]

A survey of health insurers performed by America's Health Insurance Plans (AHIP) found that 4.5 million Americans were covered by HSA-qualified health plans as of January 2007. Of those, 3.4 million were covered through employer-sponsored plans, and 1.1 million were covered by individually purchased HSA-qualified plans. This represented an increase of 1.3 million since January 2006. In the individual market, 25% of new purchasers bought HSA-qualified plans. HSA-qualified plans represented 17% of new policies sold in the small group market and 8% of new policies sold in the large group market.[8] A follow-up survey by AHIP reported that the number of Americans covered by HSA-qualified plans had grown to 6.1 million as of January 2008 (4.6 million through employer-sponsored plans and 1.5 million covered by individually purchased HSA-qualified plans). HSA-qualified plans represented 27% of new purchases in the individual market, 31% of new enrollment in the small group market and 6% of new enrollment in the large group market.[9]

In January 2008, market research firm Celent moderated its earlier projections, citing the HSA market's "disappointing early showing," and projected 12.5 million accounts by 2012.[10] A survey published by AHIP in May 2009 found that 8 million people were covered by HSA/High-Deductible health plans in January 2009. Of them, 1.8 million were covered by individual policies and approximately 6.2 million were covered by a group plan.[11]

The Government Accountability Office (GAO) reported in April 2008 that many individuals enrolled in HSA-qualified health plans did not open tax-qualified health savings accounts, and individuals that had health savings accounts had higher incomes than others. According to the report, nationally representative surveys conducted by Blue Cross Blue Shield Association in 2005 to 2007 found that 42–49% of HSA-eligible plan enrollees did not open health savings accounts in those years. Based on an examination of Internal Revenue Service (IRS) data, GAO found that tax filers who reported health savings accounts activity had higher average incomes than other tax filers. Contributions into health savings accounts ($754 million in 2005) were roughly double withdrawals from the accounts ($366 million). Average contributions were also roughly twice average withdrawals ($2,100 versus $1,000). 41% of tax filers who made a contribution into a health savings account did not make any withdrawals; 22% withdrew more than they contributed during the year.[12]

Data released in 2012 indicate that the use of health savings accounts is increasing. AHIP reported in May 2012 that the number of people covered by an HSA-eligible high-deductible health plan more than doubled between January 2008 to January 2012 (going from 6.1 million to 13.5 million).[13] The split between group and individual plans was 11 million as opposed to 2.5 million, and the gender distribution of health savings accounts between male and female enrollees was an even 50%. Among individual plan holders, 51% were under age 40, and 49% were age 40 or over. The top five states with health savings account/high-deductible health plan enrollment were California (1 million), Texas (0.76 million), Illinois (0.72 million), Ohio (0.66 million), and Florida (0.54 million). Also, a survey released in February 2012 by J. P. Morgan Chase of the 900,000 health savings accounts that it manages indicates that contributions to health savings accounts have been steadily increasing.[14] Between 2009 and 2011, the average Chase health savings account balance rose by 11% annually, and the average employee contributions increased by 7% in 2011. Also, in 2011, 42% more dollars were transferred from health savings account cash into health savings account investment accounts than were transferred out. It is believed that the Affordable Care Act, which requires all employers with 50 or more employees to offer health insurance, may be fueling some of this growth. High-deductible health plan premiums tend to be lower, and make an attractive option for both employers and employees. Since health savings account holders are required to be covered by a high-deductible health plan, this creates an opportunity for more growth in the health savings account space.[15]

As of June 30, 2021[update], according to research conducted by Devenir, an estimated $92.9 billion is held in over 31 million health savings accounts.[16]

Operation[edit]

Deposits[edit]

Qualifying for an HSA (quotes from IRS Publication 969)

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

  • 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 Other health coverage, later.
  • You aren't enrolled in Medicare.
  • You can't be claimed as a dependent on someone else's tax return.

For exceptions and details see IRS Publication 969.[17]

Deposits to a health savings accounts may be made by any policyholder of an HSA-eligible high-deductible health plan, by the employer, or any other person. If an employer makes deposits to such a plan on behalf of its employees, all employees must be treated equally, which is known as the non-discrimination rules. If contributions are made by a Section 125 plan, non-discrimination rules do not apply. Employers may treat full-time and part-time employees differently, and employers may treat individual and family participants differently; the treatment of employees who are not enrolled in a HSA-eligible high-deductible plan is not considered for non-discrimination purposes. As of 2007, employers may contribute more for non-highly compensated employees than highly compensated employees.

Contributions from an employer or employee may be made on a pretax basis by an employer. If that option is not available through the employer, contributions may be made on a post-tax basis and then used to decrease gross taxable income on the following year's Form 1040. Employer pre-tax contributions are not subject to Federal Insurance Contributions Act tax or Medicare taxes, but employee pre-tax contributions not made under cafeteria plans are subject to FICA and Medicare taxes.[18] Regardless of the method or tax savings associated with the deposit, the deposits may only be made for persons covered under an HSA-eligible high-deductible plan, with no other coverage beyond certain qualified additional coverage.

Initially, the annual maximum deposit to a health savings account was the lesser of the actual deductible or specified Internal Revenue Service limits. Congress later abolished the limit based on the deductible and set statutory limits for maximum contributions.[19] All contributions to a health savings account, regardless of source, count toward the annual maximum.

A catch-up provision also applies for plan participants who are age 55 or over, allowing the IRS limit to be increased. This "catch up" contribution limit was set to $500 for 2004, increasing $100 each year until it reached a maximum of $1,000 in 2009.[20] For 2019, the contribution limit was $3,500 for single or $7,000 for married couples and families.[21] For 2020, the contribution limit is $3,550 for single or $7,100 for married couples and families.[22] For 2021, the contribution limit will be $3,600 for single or $7,200 for married couples and families.[23]

All deposits to a health savings account become the property of the policyholder, regardless of the source of the deposit. Funds deposited but not withdrawn each year will carry over into the next year. Policyholders who end their HSA-eligible insurance coverage lose eligibility to deposit further funds, but funds already in the health savings account remain available for use.

The Tax Relief and Health Care Act of 2006, signed into law on December 20, 2006, added a provision allowing a taxpayer, once in their life, to rollover IRA assets into a health savings account, to fund up to one year's maximum contribution to a health savings account.

State income tax treatment of health savings accounts varies. California and New Jersey impose state income taxes on contributions, interest earned, and capital gains from health savings accounts. New Hampshire and Tennessee don't have state income taxes but they do impose a tax on dividends and interest, including health savings accounts.[24]

Contribution limits[edit]

A taxpayer can generally make contributions to a health savings account for a given tax year until the deadline for filing the individual's income tax returns for that year, which is typically April 15.[25] All contributions to a health savings account from both the employer and the employee count toward the annual maximum.

Year Contribution Limit
(Single)
Contribution Limit
(Family)
Catch-Up Contribution
(55 or older)
(Single and Family)
2004 $2,600 $5,150 $500
2005 $2,650 $5,250 $600
2006 $2,700 $5,450 $700
2007 $2,850 $5,650 $800
2008 $2,900 $5,800 $900
2009 $3,000 $5,950 $1,000
2010[26]$3,050 $6,150 $1,000
2011[27]$3,050 $6,150 $1,000
2012[28]$3,100 $6,250 $1,000
2013[29]$3,250 $6,450 $1,000
2014[30]$3,300 $6,550 $1,000
2015[31]$3,350 $6,650 $1,000
2016[32]$3,350 $6,750 $1,000
2017[33]$3,400 $6,750 $1,000
2018[34]$3,450 $6,900 $1,000
2019[35]$3,500 $7,000 $1,000
2020[22]$3,550 $7,100 $1,000
2021[23]$3,600 $7,200 $1,000

Investments[edit]

Funds in a health savings account can be invested in a manner similar to investments in an Individual Retirement Account (IRA). Investment earnings are sheltered from taxation until the money is withdrawn and can be sheltered even then, as discussed in the section below.

Investments in a health savings account can be directed by the individual. While a typical health savings account custodian may offer investments such as certificates of deposit, stocks, bonds, or mutual funds, certain financial institutions provide accounts offering alternative investments which can be made inside the health savings account. Internal Revenue Code Section 408 prohibits a health savings account to invest in collectibles and life insurance policies, but health savings accounts can have investments in real estate, precious metals, public and private stock, notes, and more.[36]

While health savings accounts can be rolled over from fund to fund, a health savings account cannot be rolled into an Individual Retirement Account or a 401(k) retirement plan, and funds from such investment vehicles cannot be rolled into health savings account, except for the one-time Individual Retirement Account transfer mentioned earlier. Unlike some employer contributions to a 401(k) retirement plan, all health savings account contributions belong to the participant immediately, regardless of the deposit source. A person contributing to a health savings account is under no obligation to contribute to an employer-sponsored health savings account, but an employer may require that payroll contributions be made only to the employer-sponsored health savings account plan.

Withdrawals[edit]

Health savings account participants do not have to obtain advance approval from their health savings account trustee or their medical insurer to withdraw funds, and their funds are not subject to income tax if they are made for qualified medical expenses. They include costs for services and items covered by the health plan but subject to cost-sharing such as a deductible and coinsurance, or co-payments as well as many other expenses not covered under medical plans, such as dental, vision and chiropractic care; durable medical equipment such as eyeglasses and hearing aids; and transportation expenses related to medical care. Over-the-counter medications were also eligible[37][38] until December 31, 2010, when the Patient Protection and Affordable Care Act stipulated HSA funds could no longer be used to buy over-the-counter drugs without a doctor's prescription. As a response to the COVID-19 pandemic, the passage of the CARES Act once again made over-the-counter drugs reimbursable without a prescription for amounts paid after Dec. 31, 2019. The CARES Act also recognized menstrual care products as medical expenses, allowing for those products to be purchased or reimbursed with HSA funds.[39]

There are several ways that funds in a health savings account can be withdrawn. Some health savings accounts include a debit card, some supply checks for account holder use, and some allow for a reimbursement process similar to medical insurance. Most health savings accounts have more than one possible method for withdrawal, and the methods available vary. Checks and debits do not have to be made payable to the provider. Funds can be withdrawn for any reason, but withdrawals that are not for documented qualified medical expenses are subject to income taxes and a 20% penalty. The 20% penalty is waived for persons who have reached the age of 65 or have become disabled at the time of the withdrawal. Then, only income tax is paid on the withdrawal and in effect, the account has grown tax-deferred. Medical expenses continue to be tax free. Prior to January 1, 2011, when new rules governing health savings accounts in the Patient Protection and Affordable Care Act went into effect, the penalty for non-qualified withdrawals was 10%.

Account holders are required to retain documentation for their qualified medical expenses. Failure to retain and provide documentation could cause the IRS to rule that withdrawals were not for qualified medical expenses and subject the taxpayer to additional penalties.[25]

There is no deadline for self-reimbursements of qualified medical expenses incurred after the health savings accounts was established. Health savings account participants can take advantage by paying for medical costs out of pocket and retaining receipts but allowing their accounts to grow tax-free. Money can then be withdrawn years later for any reason up to the value of the receipts.[25]

When a person dies, the funds in their health savings account are transferred to the beneficiary named for the account. If the beneficiary is a surviving spouse, the transfer is tax-free. If the beneficiary is not a spouse, the account stops being an health savings account, and the fair market value of the health savings account (less any unreimbursed qualified medical expenses of the decedent paid within the 1 year anniversary of his death) becomes taxable to the beneficiary in the year in which the health savings account owner dies.[17][40]

Compared to medical savings accounts[edit]

Health savings accounts are similar to medical savings account (MSA) plans that were authorized by the federal government before health savings account plans. Health savings accounts can be used with some high-deductible health plans. Health savings accounts came into being after legislation was signed by President George W. Bush on December 8, 2003. The law went into effect on January 1, 2004.

Health savings accounts differ in several ways from medical savings accounts. Perhaps the most significant difference is that employers of all sizes can offer a health savings account and insurance plan to employees. Medical savings accounts were limited to the self-employed and employers with 50 or fewer employees.

Benefits[edit]

The premium for a high-deductible health plan[41] is generally less than the premium for traditional health insurance. A higher deductible lowers the premium because the insurance company no longer pays for routine healthcare, and insurance underwriters believe that Americans who see a relationship between medical cost and their bank accounts will consume less medical care, shop for lower-cost options, and be more vigilant against excess and fraud in the health care industry. Introducing consumer-driven supply and demand and controlling inflation in health care and health insurance were among the government's goals in establishing these plans.

With health savings accounts, in catastrophic situations, the maximum out-of-pocket expense legal liability can be less than that of a traditional health plan. That is because a qualified high-deductible health plan can cover 100% after the deductible, involving no coinsurance.

Health savings accounts also give the flexibility not available in some traditional health plans to pay on a pretax basis for qualified medical expenses not covered in standard or HSA-eligible insurance plans, which may include dental, orthodontic, vision, and other approved expenses.[42][43]

Health savings accounts also have an advantage over flexible spending accounts since deposits are not necessarily tied to expenses in a particular plan or calendar year. They are automatically rolled over for future medical expenses or may be used to reimburse qualified expenses from prior years as long as the expense was qualified under a health savings account plan at the time that the expense was incurred.[44]

Over time, if medical expenses are low and contributions are made regularly to the health savings account, the account can accumulate significant assets that can be used for health care tax-free or used for retirement on a tax-deferred basis.

The high-deductible health plan, when combined with a health savings account, is the only health insurance plan option available that can possibly have a net gain of value during the year if the funds are invested in the health savings account.

A recent industry survey found that in July 2007 over 80% of health savings account plans provided first-dollar coverage for preventive care. It was true of virtually all health savings account plans offered by large employers and over 95% of the plans offered by small employers. It was also true of 59% of the plans that were purchased by individuals. In terms of Medicare, Plan F is considered a first-dollar coverage plan, as it has no out-of-pocket expenses on covered services.[45]

All of the plans offered first-dollar preventive care benefits included annual physicals, immunizations, well-baby and well-child care, mammograms, and Pap tests; 90% included prostate cancer screenings, and 80% included colon cancer screenings.[46]

They in fact encourage customers of all backgrounds to constrain costly spending and obtain more preventive health care. In Indiana, those with health savings accounts are 98% satisfied.[47]

Criticism[edit]

Some consumer organizations, such as Consumers Union[citation needed], and many medical organizations, such as the American Public Health Association, oppose health savings accounts because, in their opinion, they benefit only healthy, younger people, and make the health care system more expensive for everyone else. According to Stanford economist Victor Fuchs, "The main effect of putting more of it on the consumer is to reduce the social redistributive element of insurance."[48]

Critics contend that low-income people, who are more likely to be uninsured, do not earn enough to benefit from the tax breaks offered by health savings accounts. These tax breaks are too modest, when compared to the actual cost of insurance, to persuade significant numbers to buy this coverage.[49]

One industry study matched health savings account holders to the neighborhood income ("neighborhood" was defined as their census tract from the 2000 Census) and found that 3% of account holders lived in "low-income" neighborhoods (median incomes below $25,000 in 1999 dollars), 46% lived in lower-middle-income neighborhoods (median incomes between $25,000 and $50,000), 34% lived in middle-income neighborhoods (median incomes between $50,000 and $75,000), 12% lived in upper-income neighborhoods (median incomes between $75,000 and $100,000) and 5% lived in higher income neighborhoods (median incomes above $100,000).[50]

In testimony before the US Senate Finance Committee's Subcommittee on Health in 2006, advocacy group Commonwealth Fund said that all evidence to date shows that health savings accounts and high-deductible health plans worsen, rather than improve, the US health system's problems.[51]

Funds in a health savings account that are not held in savings accounts insured by the Federal Deposit Insurance Corporation are subject to market risk, as is any other investment. While the potential upside from investment gains can be viewed as a benefit, the subsequent downside, as well as the possibility of capital loss, may make the health savings account a poor option for some.[52] And information about the maintenance fees, interest rates and investment lineups of health savings accounts is not easy to find.[53]

Despite the criticism, assets in health savings accounts continue to grow, and providers are lowering fees.[54] In the first half of 2020 assets grew by approximately 12% according to an analysis by Morningstar.[55]

Consumer satisfaction[edit]

Consumer satisfaction results have been mixed. While a 2005 survey by the Blue Cross and Blue Shield Association found widespread satisfaction among health savings account customers,[56] a survey published in 2007 by employee benefits consultants Towers Perrin came to the opposite conclusion; it found that employees currently enrolled in such plans were significantly less satisfied with many elements of the health benefit plan compared to those enrolled in traditional health benefit plans.[57]

In 2006, a Government Accountability Office report concluded: "HSA-eligible plan enrollees who participated in GAO's focus groups generally reported positive experiences, but most would not recommend the plans to all consumers. Few participants reported researching cost before obtaining health care services, although many researched the cost of prescription drugs. Most participants were satisfied with their HSA-eligible plans and would recommend them to healthy consumers, but not to those who use maintenance medication, have a chronic condition, have children, or may not have the funds to meet the high deductible."[58]

According to the Commonwealth Fund, early experience with HSA-eligible high-deductible health plans reveals low satisfaction, high out-of-pocket costs, and cost-related access problems.[51] A survey conducted with the Employee Benefit Research Institute found that people enrolled in HSA-eligible high-deductible health plans were much less satisfied with many aspects of their health care than adults in more comprehensive plans.[59]

  • People in these plans allocate substantial amounts of income to their health care, especially those who have poorer health or lower incomes.
  • Adults in high-deductible health plans are far more likely to delay or avoid getting needed care, or to skip medications, because of the cost. Problems are particularly pronounced among those with poorer health or lower incomes.
  • Few Americans in any health plan have the information they need to make decisions. Just 12 to 16 percent of insured adults have information from their health plan about the quality or cost of care provided by their doctors and hospitals.

Some policy analysts say that consumer satisfaction doesn't reflect quality of health care. Researchers at RAND Corporation and Department of Veterans Affairs asked 236 vulnerable elderly patients at two managed care plans to rate their care, then examined care in medical records, as reported in Annals of Internal Medicine. There was no correlation. "Patient ratings of health care are easy to obtain and report, but do not accurately measure the technical quality of medical care," said John T. Chan, UCLA, lead author.[60][61][62]

Health policy[edit]

According to a 2006 Zogby poll, seven in ten voters back Congressional action to allow HSA participants to pay for their insurance premiums using money in their savings plans.[63]

See also[edit]

References[edit]

  1. ^ ab"Health Savings Accounts". Health401k.com. Retrieved 2010-12-09.
  2. ^"Health Savings Accounts (HSAs)". U.S. Treasury. Retrieved 2015-12-13.
  3. ^ ab26 CFR223
  4. ^"Affordable Care Act: Questions and Answers on Over-the-Counter Medicines and Drugs". IRS. September 3, 2010. Retrieved December 9, 2010.
  5. ^Christman, Michael D. (April 10, 2020). "COVID-19 and Benefits: 'Now, a Word from Your HR Director'". National Law Review.
  6. ^"Employer Health Benefits 2007 Annual Survey"(PDF). Kaiser Family Foundation. September 2007. Retrieved 2015-05-17.
  7. ^"Employer Health Benefits 2012 Annual Survey"(PDF). Kaiser Family Foundation. September 2012. Retrieved 2015-05-17.
  8. ^Hannah Yoo, January 2007 Census Shows 4.5 Million People Covered by HSA/High-Deductible Health Plans, AHIP, April 2007
  9. ^Hannah Yoo, January 2008 Census Shows 6.1 Million People Covered by HSA/High-deductible Health Plans, America's Health Insurance Plans, April 2008
  10. ^Press Release for Report Entitled "HSAs: Moving Beyond the Growing Pains,"Archived 2011-10-05 at the Wayback Machine Celent, January 7, 2008
  11. ^Hannah Yoo, January 2009 Census Shows 8 Million People Covered by HSA/High-deductible Health Plans, America's Health Insurance Plans, May 2009
  12. ^John E. Dicken, Director, Health Care, U.S. Government Accountability Office, "Health Savings Accounts: Participation Increased and Was More Common among Individuals with Higher Incomes," Letter to Henry A. Waxman, Chairman of the House of Representatives Committee on Oversight and Government Reform and Pete Stark, Chairman of House of Representatives Subcommittee on Health Committee on Ways and Means, dated April 1, 2008
  13. ^Center for Policy Research, America's Health Insurance Plans, http://www.ahip.org/HSA2012/
  14. ^J. P. Morgan Chase, http://www.jpmorgan.com/visit/hsasnapshot
  15. ^"Health Savings Accounts". Retrieved 2016-09-02.
  16. ^"HSA Assets Approach $100 Billion Through First Half of 2021". devenir.com. Devenir Research. Retrieved 2021-09-16.
  17. ^ ab"Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service". www.irs.gov.
  18. ^"Publication 15: (Circular E), Employer's Tax Guide"(PDF). Internal Revenue Service. 2015. p. 16. Retrieved 2015-04-01.
  19. ^"HSA Center 2012 Limits". hsacenter.com. Retrieved 2011-11-02.
  20. ^"MMA Section 223 - Health Savings Accounts". congress.gov. Retrieved 2020-11-02.
  21. ^IRS Rev. Proc. 2018-30. Retrieved June 8, 2018
  22. ^ ab"IRS Rev. Proc. 2019-22". irs.gov. Retrieved 8 May 2020.
  23. ^ ab"IRS Rev. Proc. 2020-32"(PDF). irs.gov. Retrieved 2 Nov 2020.
  24. ^"The HSA Federal State Income Taxes - HSA for America". HSAforAmerica.com. Retrieved 2020-11-02.
  25. ^ abc"IRS Publication 969". www.irs.gov. Retrieved 2011-07-19.
  26. ^"IRS Rev. Proc. 2009-29"(PDF). irs.gov. Retrieved 17 August 2017.
  27. ^"IRS Rev. Proc. 2010-22"(PDF). irs.gov. Retrieved 17 August 2017.
  28. ^"IRS Rev. Proc. 2011-32"(PDF). irs.gov. Retrieved 17 August 2017.
  29. ^"IRS Rev. Proc. 2012-26"(PDF). irs.gov. Retrieved 17 August 2017.
  30. ^"IRS Rev. Proc. 2013-25"(PDF). irs.gov. Retrieved 17 August 2017.
  31. ^"IRS Rev. Proc. 2014-30"(PDF). irs.gov. Retrieved 17 August 2017.
  32. ^"IRS Rev. Proc. 2015-30"(PDF). irs.gov. Retrieved 17 August 2017.
  33. ^"IRS Rev. Proc. 2016-28"(PDF). irs.gov. Retrieved 17 August 2017.
  34. ^"IRS Rev. Proc. 2018-27"(PDF). irs.gov. Retrieved 8 May 2018.
  35. ^"IRS Rev. Proc. 2018-30"(PDF). irs.gov. Retrieved 8 June 2018.
  36. ^"Self Directed Accounts – HSA (Health Savings Account)". New Direction Trust Company. Retrieved 2020-04-15.
  37. ^"2006 IRS Publication 502". www.irs.gov. Retrieved 2007-10-21.
  38. ^"HSA.pdf"(PDF). treasury.gov. Archived from the original(PDF) on 2007-11-20. Retrieved 17 August 2017.
  39. ^"IRS outlines changes to health care spending available under CARES Act". www.irs.gov. Retrieved 2021-04-27.
  40. ^"Can I Roll HSA Contributions Into a Roth IRA?". Finance - Zacks.
  41. ^Ponce, Ernesto. "High-Deductible Health Plans Defined". coverageoneinsurance.com/.
  42. ^"US Department of the Treasury". treas.gov. Archived from the original on 2005-02-10. Retrieved 2015-04-07.
  43. ^"HSA Basics"(PDF). treas.gov. Archived from the original(PDF) on 2007-08-14. Retrieved 17 August 2017.
  44. ^"Internal Revenue Bulletin – Notice 2004-50". irs.gov. August 16, 2004. Retrieved 2015-04-07.
  45. ^"Compare Medigap Insurance Plans for 2021". MedicareFAQ. 2020-03-03. Retrieved 2020-10-02.
  46. ^Thomas Wilder and Hannah Yoo, "A Survey of Preventive Benefits in Health Savings Account (HSA) Plans, July 2007," America's Health Insurance Plans, November 2007
  47. ^Mitch Daniels (March 1, 2010). "Mitch Daniels: Hoosiers and Health Savings Accounts". WSJ. Retrieved 2015-04-07.
  48. ^Gladwell, Malcolm (August 29, 2005). "The Moral Hazard Myth". The New Yorker. Archived from the original on June 30, 2007. Retrieved 2007-06-28.
  49. ^"Health Care Coverage in America: Understanding the Issues and Proposed Solutions"(PDF). Alliance for Health Reform. Archived from the original(PDF) on 2007-10-25. Retrieved 2007-07-10.
  50. ^Hannah Yoo and Christelle Chen, Estimated Income Characteristics of HSA Accountholders in 2008, America's Health Insurance Plans, May 2009
  51. ^ ab"Health Savings Accounts and High-Deductible Health Plans: Why They Won't Cure What Ails U.S. Health Care". cmwf.org. Retrieved 2015-04-07.
  52. ^"Health Insurance Facts | Smarter Consumers of Healthcare". Health Harbor. Retrieved 2012-09-28.
  53. ^"Top HSA Providers of 2019: Our Annual Checkup". Morningstar, Inc. Retrieved 2020-08-18.
  54. ^October 16, Michael S. Fischer

    Health savings account

    Alert: Benefits updates related to COVID-19

    Read about updates to health savings accounts in response to COVID-19.

    Who can have an HSA

    To open and contribute to an HSA, you

    • must be covered by an HSA-compatible health plan, such as the HDHP offered through the Board of Pensions;
    • cannot be covered by any other medical plan that is not an HSA-compatible health plan, including a spouse’s medical plan;
    • cannot typically be enrolled in a healthcare flexible spending account (unless the FSA is a limited scope FSA);
    • cannot be enrolled in Medicare or Tricare;
    • cannot be claimed as a dependent on someone else’s tax return, and
    • must be a U.S. resident.

    How it works

    HSAs are considered tax advantaged because, under Internal Revenue Service (IRS) rules, you don’t pay taxes on your contributions, any investment growth is tax-free, and so are withdrawals for qualified expenses. The IRS decides what expenses can be paid through your HSA (see Qualified Expenses). 

    Here’s how an HSA works:

    1. You decide how much to contribute to your HSA for the coming year, subject to IRS limits (this is called your election).
    2. The amount elected will be deducted on a pretax basis from your paycheck in equal amounts and credited to your HSA over the course of the year.
    3. When you have a qualified expense, you decide whether to
      • use HSA funds to pay for the expense; or
      • pay for the expense out of pocket and allow the HSA balance to grow.
    4. You may use HSA contributions as they are deposited in your account.
    5. The HSA earns interest tax-free; you also may invest your account when the balance reaches $1,000. Withdrawals for eligible expenses are also tax-free.
    6. Unused HSA funds roll over from one year to the next with no limits.
    7. You own your HSA, so it goes with you if you change medical plans, start a new job, or retire.

    Contributions

    You may contribute to the HSA up to annual limits set by the IRS. The annual limits for 2022 are as follows:

    • $3,650 if enrolled for Member-only coverage (up from $3,600 in 2021)
    • $7,300 if covering any family members (up from $7,200 in 2021)

    If you will be 55 or older during the year, you may make additional catchup contributions of up to $1,000.

    Your employer may also contribute to your HSA; you are not taxed on these contributions. Both your contribution and any employer contributions count toward the annual IRS limit.

    HSA contributions are exempt from federal income and FICA (Social Security and Medicare) taxes. HSA contributions are also exempt from SECA taxes paid by ministers. Under current IRS rules, you may not contribute to both an HSA and a healthcare FSA unless the FSA is a limited scope FSA. The healthcare FSA available to you typically will not be a limited scope FSA.

    Qualified expenses

    You may use your HSA funds for your own qualified healthcare expenses or for qualified expenses for any family member that you can claim as a dependent for tax purposes. The family member does not need to be enrolled in the Medical Plan.

    Qualified expenses are the medical, dental, and vision expenses that can be claimed as a tax deduction. Examples include, but are not limited to, deductible and coinsurance amounts, dental or orthodontia treatment not covered by the Dental Plan, and prescription drugs. Eligible expenses are outlined in IRS Publication 502 (Medical and Dental Expenses).

    Important: You are responsible for making sure your HSA funds are used to pay for qualified expenses. If your HSA funds are used for expenses that are not qualified, the amount you used will be subject to federal income tax, with an additional 20 percent tax penalty if you are under age 65. Keep copies of itemized bills to show you used your HSA funds to pay for qualified expenses, in case of an IRS audit.

    How to enroll

    Your employer will tell you how to make your elections and deduct your contributions from your pay. Your employer will also work directly with Further, the HSA administrator, to set up your account. Once enrolled, you will receive a welcome packet from Further with additional information. You’ll receive a separate mailing from Further containing a healthcare Visa debit card that you can use to access your HSA funds to pay for eligible expenses.

    Then, each year during annual enrollment, your employer will provide instructions on what to do to change or continue your election.

    If you already have an HSA with another administrator, you may transfer your existing HSA balance to Further to consolidate your savings. Check with your current HSA administrator to see if any fees may apply.

    Источник: https://pensions.org/what-we-offer/benefits-guidance/medical-benefits/Health-savings-account

    What Is An HSA?

    Things To Know About An HSA

    • Pre-tax contributions*: If you are eligible for an HSA, you and your employer can make tax-free contributions (up to the annual limit) to your HSA.
    • Tax-free withdrawals:  As long as you are paying for a qualified medical expense, withdrawals from your HSA are tax-free .
    • Portability:  You take your HSA account with you, even if you change jobs or health plans.
    • No "Use It or Lose It":  Your HSA funds roll over annually, regardless of the amount.

    Learn the difference between an HSA and an FSA (Flexible Spending Account).

    * Health Savings Accounts (HSA) have tax and legal ramifications. Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products.

    Источник: https://www.bcbsil.com/insurance-basics/how-health-insurance-works/what-is-an-hsa

    Health Savings Accounts Made Easy

    How do HSAs compare to HRAs?

    HSAs are commonly confused with health reimbursement arrangements (HRAs) because of their ability to be used toward out-of-pocket health expenses, but they have a few key differences that employers should be aware of.

    HSAs are an account that employers and employees can regularly contribute to. With the account, employees accumulate money and eventually spend it on health-related expenses or cash it in during retirement. HSAs are a tax-free method for employers to support their employees’ health benefit needs, but can only be offered alongside a high deductible health plan. Employer contributions to an HSA are a fixed cost and the employee takes them when they leave.

    HRAs are a tax-free arrangement—not an account—where employers reimburse employees for health-related expenses and only pay for it when their employees use it. Employees may not contribute any money in the arrangement and employers only incur the expense when employees incur them. Unused allowance stays with the employer if an employee leaves the company.

    With an HRA, employees can shop for individual health insurance that fits their needs best, rather than having to accept or deny the group health plan their employer chooses. This gives employees more control over their healthcare than any other type of health benefit, and employers get the added benefit of setting a fixed allowance that cannot be exceeded.

    Download our comparison chart: HRAs vs HSAs vs FSAs

    PeopleKeep offers three different types of HRAs that can meet any organization’s health benefits needs. Take our quiz below to find out which one matches you best:

    Find out which HRA fits your organization's needs best: take the quiz.

    Источник: https://www.peoplekeep.com/health-savings-accounts

    Health Savings Accounts Made Easy

    How do HSAs compare to HRAs?

    HSAs are commonly confused with health reimbursement arrangements (HRAs) because of their ability to be used toward out-of-pocket health expenses, but they have a few key differences that employers should be aware of.

    HSAs are an account that employers and employees can regularly contribute to. With the account, employees accumulate money and eventually spend it on health-related expenses or cash it in during retirement. HSAs are a tax-free method for employers to support their employees’ health benefit needs, but can only be offered alongside a high deductible health plan. Employer contributions to an HSA are a fixed cost and the employee takes them when they leave.

    HRAs are a tax-free arrangement—not an account—where employers reimburse employees for health-related expenses and only pay for it when their employees use it. Employees may not contribute any money in the arrangement and employers only incur the expense when employees incur them. Unused allowance stays with the employer if an employee leaves the company.

    With an HRA, employees can shop for individual health insurance that fits their needs best, rather than having to accept or deny the group health plan their employer chooses. This gives employees more control over their healthcare than any other type of health benefit, and employers get the added benefit of setting a fixed allowance that cannot be exceeded.

    Download our comparison chart: HRAs vs HSAs vs FSAs

    PeopleKeep offers three different types of HRAs that can meet any organization’s health benefits needs. Take our quiz below to find out which one matches you best:

    Find out which HRA fits your organization's needs best: take the quiz.

    Источник: https://www.peoplekeep.com/health-savings-accounts

    What Is An HSA?

    Things To Know About An HSA

    • Pre-tax contributions*: If you are eligible for an HSA, you and your employer can make tax-free contributions (up to the annual limit) to your HSA.
    • Tax-free withdrawals:  As long as you are paying for a qualified medical expense, withdrawals from your HSA are tax-free .
    • Portability:  You take your HSA account with you, even if you change jobs or health plans.
    • No "Use It or Lose It":  Your HSA funds roll over annually, regardless of the amount.

    Learn the difference between an HSA and an FSA (Flexible Spending Account).

    * Health Savings Accounts (HSA) have tax and legal ramifications. Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products.

    Источник: https://www.bcbsil.com/insurance-basics/how-health-insurance-works/what-is-an-hsa

    Health savings account

    American tax-advantaged medical savings account

    This article is about medical savings accounts in the United States. For international uses, see medical savings account.

    A health savings account (HSA) is a tax-advantagedmedical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP).[1][2] The funds contributed to an account are not subject to federal income tax at the time of deposit.[3] Unlike a flexible spending account (FSA), HSA first national bank harker heights walmart roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.

    HSA funds may be used to pay for qualified medical expenses at any time without federal tax liability or penalty. Beginning in early 2011 over-the-counter medications could not be paid what is the purpose of a health savings account an HSA without a doctor's prescription, although that requirement was lifted as of January 1, 2020.[4][5] Withdrawals for non-medical expenses are treated very similarly to those in an individual retirement account (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. The accounts are a component of consumer-driven health care.

    Proponents of HSAs believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses, allow the patient to receive needed care without a gatekeeper to determine what benefits are allowed, and make consumers more responsible for their own health care choices through the required high-deductible health plan.[1] Opponents observe that the structure of HSAs complicates the decision of whether to obtain medical treatment, by setting it against tax liability and retirement-saving goals. There is also debate about consumer satisfaction with these plans.

    History[edit]

    HSAs were established as part of the Medicare Prescription Drug, Improvement, and Modernization Act, which included the enactment of Internal Revenue Code section 223,[3] effective for tax years beginning after December 31, 2003, signed into law by President George W. Bush on December 8, 2003. They were developed to replace the medical savings account system.

    A survey of employers published by the Kaiser Family Foundation in September 2008 found that 8% of covered workers were enrolled in a consumer-driven health plan (including both HSAs and Health Reimbursement Accounts), up from 4% in 2006. The study found that roughly 10% of firms offered such plans to their workers. Large firms were more likely to offer a high-deductible plan (18%), but enrollment was higher in small firms (8% of covered workers, versus 4% in larger firms).[6] As of 2012, these numbers had increased. Approximately 31% of firms offering health insurance offered an HSA (26%) or an HRA (5%) option. Large firms (38%) were somewhat more likely than small (31%) firms to offer such options. 11% of covered workers were in HSAs, while 8% were in HRAs. In small companies, 24% were in high-deductible health plans vs 17% in larger firms.[7]

    A survey of health insurers performed by America's Health Insurance Plans (AHIP) found that 4.5 million Americans were covered by HSA-qualified health plans as of January 2007. Of those, 3.4 million were covered through employer-sponsored plans, and 1.1 million were covered wwe 2018 money in the bank winner individually purchased HSA-qualified plans. This represented an increase of 1.3 million since January 2006. In the individual market, 25% of new purchasers bought HSA-qualified plans. HSA-qualified plans represented 17% of new policies sold in the small group market and 8% of new policies sold in the large group market.[8] A follow-up survey by AHIP reported that the number of Americans covered by HSA-qualified plans had grown to 6.1 million as of January 2008 (4.6 million through employer-sponsored plans and 1.5 million covered by individually purchased HSA-qualified plans). HSA-qualified plans represented 27% of new purchases in the individual market, 31% of new enrollment in the small group market and 6% of new enrollment in the large group market.[9]

    In January 2008, market research firm Celent moderated its earlier projections, citing the HSA market's "disappointing early showing," and projected 12.5 million accounts by 2012.[10] A survey published by AHIP in May 2009 found that 8 million people were covered by HSA/High-Deductible health plans in January 2009. Of them, 1.8 million were covered by individual policies and approximately 6.2 million were covered by a group plan.[11]

    The Government Accountability Office (GAO) reported in April 2008 that many individuals enrolled in HSA-qualified health plans did not open tax-qualified health savings accounts, and individuals that had health savings accounts had higher incomes than others. According to the report, nationally representative surveys conducted by Blue Cross Blue Shield Association in 2005 to 2007 found that 42–49% of HSA-eligible plan enrollees did not open health savings accounts in those years. Based on an examination of Internal Revenue Service (IRS) data, GAO found that tax filers who reported health savings accounts activity had higher average incomes than other tax filers. Contributions into health savings accounts ($754 million in 2005) were roughly double withdrawals from the accounts ($366 million). Average contributions were also roughly twice average withdrawals ($2,100 versus $1,000). 41% of tax filers who made a contribution into a health savings account did not make any withdrawals; 22% withdrew more than they contributed during the year.[12]

    Data released in 2012 indicate that the use of health savings accounts is increasing. AHIP reported in May 2012 that the number of people covered by an HSA-eligible high-deductible health plan more than doubled between January 2008 to January 2012 (going from 6.1 million to 13.5 million).[13] The split between group and individual plans was 11 million as what is the purpose of a health savings account to 2.5 million, and the gender distribution of health savings accounts between male and female enrollees was an even 50%. Among individual plan holders, 51% were under age 40, and 49% were age 40 or over. The top five states with health savings account/high-deductible health plan enrollment were California (1 million), Texas (0.76 million), Illinois (0.72 million), Ohio (0.66 million), and Florida (0.54 million). Also, a survey released in February 2012 by J. P. Morgan Chase of the 900,000 health savings accounts that it manages indicates that contributions to health savings accounts have been steadily increasing.[14] Between 2009 and 2011, the average Chase health savings account balance rose by 11% annually, and the average employee contributions increased by 7% in 2011. Also, in 2011, 42% more dollars were transferred from health savings account cash into health savings account investment accounts than were transferred out. It is believed that the Affordable Care Act, which requires all employers with 50 or more employees to offer health insurance, may be fueling some of this growth. High-deductible health plan premiums tend to be lower, and make an attractive option for both employers and employees. Since health savings account holders are required to be covered by a high-deductible health plan, this creates an opportunity for more growth in the health savings account space.[15]

    As of June 30, 2021[update], according to research conducted by Devenir, an estimated $92.9 billion is held in over 31 million health savings accounts.[16]

    Operation[edit]

    Deposits[edit]

    Qualifying for an HSA (quotes from IRS Publication 969)

    To be an eligible individual and qualify for an HSA, you must meet the following requirements.

    • 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 the purpose of a health savings account is permitted under Other health coverage, later.
    • You aren't enrolled in Medicare.
    • You can't be claimed as a dependent on someone else's tax return.

    For exceptions and details see IRS Publication 969.[17]

    Deposits to a health savings accounts may be made by any policyholder of an HSA-eligible high-deductible health plan, by the employer, or any other person. If an employer makes deposits to such a plan on behalf of its employees, all employees must be treated equally, which is known as the non-discrimination rules. If contributions are made by a Section 125 plan, non-discrimination rules do not apply. Employers may treat full-time and part-time employees differently, and employers may treat individual and family participants differently; the treatment of employees who are not enrolled in a HSA-eligible high-deductible plan is not considered for non-discrimination purposes. As of 2007, employers may contribute more for non-highly compensated employees than highly compensated employees.

    Contributions from an employer or employee may be made on a pretax basis by an employer. If that option is not available through the employer, contributions may be made on a post-tax basis and then used to decrease gross taxable income on the following year's Form 1040. Employer pre-tax contributions are not subject to Federal Insurance Contributions Act tax or Medicare taxes, but employee pre-tax contributions not made under cafeteria plans are subject to FICA and Medicare taxes.[18] Regardless of the method or tax savings associated with the deposit, the deposits may only be made for persons covered under an HSA-eligible high-deductible plan, with no other coverage beyond certain qualified additional coverage.

    Initially, the annual maximum deposit to a health savings account was the lesser of the actual deductible or specified Internal Revenue Service limits. Congress later abolished the limit based on the deductible and set statutory limits for maximum contributions.[19] All contributions to a health savings account, regardless of source, count toward the annual maximum.

    A catch-up provision also applies for plan participants who are age 55 or over, allowing the IRS limit to be increased. This "catch up" contribution limit was set to $500 for 2004, increasing $100 each year until it reached a maximum of $1,000 in 2009.[20] For 2019, the contribution limit was $3,500 for single or $7,000 for married couples and families.[21] For 2020, the contribution limit is $3,550 for single or $7,100 for married couples and families.[22] For 2021, the contribution limit will be $3,600 for single or $7,200 for married couples and families.[23]

    All deposits to a health savings account become the property of the policyholder, regardless of the source of the deposit. Funds deposited but not withdrawn each year will carry over into the next year. Policyholders who end their HSA-eligible insurance coverage lose eligibility to deposit further funds, but funds already in the health savings account remain available for use.

    The Tax Relief and Health Care Act of 2006, signed into law on December 20, 2006, added a provision allowing a taxpayer, once in their life, to rollover IRA assets into a health savings account, to fund up to one year's maximum contribution to a health savings account.

    State income tax treatment of health savings accounts varies. California and New Jersey impose state income taxes on contributions, interest earned, and capital gains from health savings accounts. New Hampshire and Tennessee don't have state income taxes but they do impose a tax on dividends and interest, including health savings accounts.[24]

    Contribution limits[edit]

    A taxpayer can generally make contributions to a health savings account for a given tax year until the deadline for filing the individual's income tax returns for that year, which is typically April 15.[25] All contributions to a health savings account from both the employer and the employee count toward the annual maximum.

    Year Contribution Limit
    (Single)
    Contribution Limit
    (Family)
    Catch-Up Contribution
    (55 or older)
    (Single and Family)
    2004 $2,600 $5,150 $500
    2005 $2,650 $5,250 $600
    2006 $2,700 $5,450 $700
    2007 $2,850 $5,650 $800
    2008 $2,900 $5,800 $900
    2009 $3,000 $5,950 $1,000
    2010[26]$3,050 $6,150 $1,000
    2011[27]$3,050 $6,150 $1,000
    2012[28]$3,100 $6,250 $1,000
    2013[29]$3,250 $6,450 $1,000
    2014[30]$3,300 $6,550 $1,000
    2015[31]$3,350 $6,650 $1,000
    2016[32]$3,350 $6,750 $1,000
    2017[33]$3,400 $6,750 $1,000
    2018[34]$3,450 $6,900 $1,000
    2019[35]$3,500 $7,000 $1,000
    2020[22]$3,550 $7,100 $1,000
    2021[23]$3,600 $7,200 $1,000

    Investments[edit]

    Funds in a health savings account can be invested in a manner similar to what is the purpose of a health savings account in an Individual Retirement Account (IRA). Investment earnings are sheltered from what is the purpose of a health savings account until the money is withdrawn and can be sheltered even then, as discussed in the section below.

    Investments in a health savings account can be directed by the individual. While a typical health savings account custodian may offer investments such as certificates of deposit, stocks, bonds, or mutual funds, certain financial institutions provide accounts offering alternative investments which can be made inside the health savings account. Internal Revenue Code Section 408 prohibits a health savings account to invest in collectibles and life insurance policies, but health savings accounts can have investments in real estate, precious metals, public and private stock, notes, and more.[36]

    While health savings accounts can be rolled over from fund to fund, a health savings account cannot be rolled into an Individual Retirement Account or a 401(k) retirement plan, and funds from such investment vehicles cannot be rolled into health savings account, except for the one-time Individual Retirement Account transfer mentioned earlier. Unlike some employer contributions to a 401(k) retirement plan, all health savings account contributions belong to the participant immediately, regardless of the deposit source. A person contributing to a health savings account is under no obligation to contribute to an employer-sponsored health savings account, but an employer may require that payroll contributions be made only to the employer-sponsored health savings account plan.

    Withdrawals[edit]

    Health savings account participants do not have to obtain advance approval from their health savings account trustee or their medical insurer to what is the purpose of a health savings account funds, and their funds are not subject to income tax if they are made for qualified medical expenses. They include costs for services and items covered by the health plan but subject to cost-sharing such as a deductible and coinsurance, or co-payments as well as many other expenses not covered under medical plans, such as dental, vision and chiropractic care; durable medical equipment such as eyeglasses and hearing aids; and transportation expenses related to medical care. Over-the-counter medications were also eligible[37][38] until December 31, 2010, when the Patient Protection and Affordable Care Act stipulated HSA funds could no longer be used to buy over-the-counter drugs without a doctor's prescription. As a response to the COVID-19 pandemic, the passage of the CARES Act once again made over-the-counter drugs reimbursable without a prescription for amounts paid after Dec. 31, 2019. The CARES Act also recognized menstrual care products as medical expenses, allowing for those products to be purchased or reimbursed with HSA funds.[39]

    There are several ways that funds in a health savings account can be withdrawn. Some health savings accounts include a debit card, some supply checks for account holder use, and some allow for a reimbursement process similar to medical insurance. Most health savings accounts have more than one possible method for withdrawal, and the methods available vary. Checks and debits do not have to be made payable to the provider. Funds can be withdrawn for any reason, but withdrawals that are not for documented qualified medical expenses are subject to income taxes and a 20% penalty. The 20% penalty is waived for persons who have reached the age of 65 or have become disabled at the time of the withdrawal. Then, only income tax is paid on the withdrawal and in effect, the account has grown tax-deferred. Medical expenses continue to be tax free. Prior to January 1, 2011, when new rules governing health savings accounts in the Patient Protection and Affordable Care Act went into effect, the penalty for non-qualified withdrawals was 10%.

    Account holders are required to retain documentation for their qualified medical expenses. Failure to retain and provide documentation could cause the IRS to rule that withdrawals were not for qualified medical expenses and subject the taxpayer to additional penalties.[25]

    There is no deadline for self-reimbursements of qualified medical expenses incurred after the health savings accounts was established. Health savings account participants can take advantage by paying for medical costs out of pocket and retaining receipts but allowing their accounts to grow tax-free. Money can then be withdrawn years later for any reason up to the value of the receipts.[25]

    When a person dies, the funds in their health savings account are transferred to the beneficiary named for the account. If the beneficiary is a surviving spouse, the transfer is tax-free. If the beneficiary is not a spouse, the account stops being an health savings account, and the fair market value of the health savings account (less any unreimbursed qualified medical expenses of the decedent paid within the 1 year anniversary of his death) becomes taxable to the beneficiary in the year in which the health savings account owner dies.[17][40]

    Compared to medical savings accounts[edit]

    Health savings accounts are similar to medical savings account (MSA) plans that were authorized by the federal government before health savings account plans. Health savings accounts can be used with some high-deductible health plans. Health savings accounts came into being after legislation was signed by President George W. Bush on December 8, 2003. The law went into effect on January 1, 2004.

    Health savings accounts differ in several ways from medical savings accounts. Perhaps the most significant difference is that employers of all sizes can offer a health savings account and insurance plan to employees. Medical savings accounts were limited to the self-employed and employers with 50 or fewer employees.

    Benefits[edit]

    The premium for a high-deductible health plan[41] is generally less than the premium for traditional health insurance. A higher deductible lowers the premium because the insurance company no longer pays for routine healthcare, and insurance underwriters believe that Americans who see a relationship between medical cost and their bank accounts will consume less medical care, shop for lower-cost options, and be more vigilant against excess and fraud in the health care industry. Introducing consumer-driven supply and demand and controlling inflation in health care and health insurance were among the government's goals in establishing these plans.

    With health savings accounts, in catastrophic situations, the maximum out-of-pocket expense legal liability can be less than that of a traditional health plan. That is because a qualified high-deductible health plan can cover 100% after the deductible, involving no coinsurance.

    Health savings accounts also give the flexibility not available in some traditional health what is the purpose of a health savings account to pay on a pretax basis for qualified medical expenses not covered in standard or HSA-eligible insurance plans, which may include dental, orthodontic, vision, and other approved expenses.[42][43]

    Health savings accounts also have an advantage over flexible spending accounts since deposits are not necessarily tied to expenses in a particular plan or calendar year. They are automatically rolled over for future medical expenses or may be used to reimburse qualified expenses from prior years as long as the expense was qualified under a health savings account plan at the time that the expense was incurred.[44]

    Over time, if medical expenses are low and contributions are made regularly to the health savings account, the account can accumulate significant assets that can be used for health care tax-free or used for retirement on a tax-deferred basis.

    The high-deductible health plan, when combined with a health savings account, is the only health insurance plan option available that can possibly have a net gain of value during the year if the funds are invested in the health savings account.

    A recent industry survey found that in July 2007 over 80% of health savings account plans provided first-dollar coverage for preventive care. It was true of virtually all health savings account plans offered by large employers and over 95% of the plans offered by small employers. It was also true of 59% of the plans that were purchased by individuals. In terms of Medicare, Plan F is considered a first-dollar coverage plan, as it has no out-of-pocket expenses on covered services.[45]

    All of the plans offered first-dollar preventive care benefits included annual physicals, immunizations, well-baby and well-child care, mammograms, and Pap tests; 90% included prostate cancer screenings, and 80% included colon cancer screenings.[46]

    They in fact encourage customers of all backgrounds to constrain costly spending and obtain more preventive health care. In Indiana, those with health savings accounts are 98% satisfied.[47]

    Criticism[edit]

    Some consumer organizations, such as Consumers Union[citation needed], and many medical organizations, such as the American Public Health Association, oppose health savings accounts because, in their opinion, they benefit only healthy, younger people, and make the health care system more expensive for everyone else. According to Stanford economist Victor Fuchs, "The main effect of putting more of it on the consumer is to reduce the social redistributive element of insurance."[48]

    Critics contend that low-income people, who are more likely to be uninsured, do not earn enough to benefit from the tax breaks offered by health savings accounts. These tax breaks are too modest, when compared to the actual cost of insurance, to persuade significant numbers to buy this coverage.[49]

    One industry study matched health savings account holders to the neighborhood income ("neighborhood" was defined as their census tract from the 2000 Census) and found that 3% of account holders lived in "low-income" neighborhoods (median incomes below $25,000 in 1999 dollars), 46% lived in lower-middle-income neighborhoods (median incomes between $25,000 and $50,000), 34% lived in middle-income neighborhoods (median incomes between $50,000 and $75,000), 12% lived in upper-income neighborhoods (median incomes between $75,000 and $100,000) and 5% lived in higher income neighborhoods (median incomes above $100,000).[50]

    In testimony before the US Senate Finance Committee's Subcommittee on Health in 2006, advocacy group Commonwealth Fund said that all evidence to date shows that health savings accounts and high-deductible health plans worsen, rather than improve, the US health system's problems.[51]

    Funds in a health savings account that are not held in savings accounts insured by the Federal Deposit Insurance Corporation are subject to market risk, as is any other investment. While the potential upside from investment gains can be viewed as a benefit, the subsequent downside, as well as the possibility of capital loss, may make the health savings account a poor option for some.[52] And information about the maintenance fees, interest rates and investment lineups of health savings accounts is not easy to find.[53]

    Despite the criticism, assets in health savings accounts continue to grow, and providers are lowering fees.[54] In the first half of 2020 assets grew by approximately 12% according to an analysis by Morningstar.[55]

    Consumer satisfaction[edit]

    Consumer satisfaction results have been mixed. While a 2005 survey by the Blue Cross and Blue Shield Association found widespread satisfaction among health savings account customers,[56] a survey published in 2007 by employee benefits consultants Towers Perrin came to the opposite conclusion; it found that employees currently enrolled in such plans were significantly less satisfied with many elements of the health benefit plan compared to those enrolled in traditional health benefit plans.[57]

    In 2006, a Government Accountability Office report concluded: "HSA-eligible plan enrollees who participated in GAO's focus groups generally reported positive experiences, but most would not recommend the plans to all consumers. Few participants reported researching cost before obtaining health care services, although many researched the cost of prescription drugs. Most participants were satisfied with their HSA-eligible plans and would recommend them to healthy consumers, but not to those who use maintenance medication, have a chronic condition, have children, or may not have the funds to meet the high deductible."[58]

    According to the Commonwealth Fund, early experience with HSA-eligible high-deductible health plans reveals low satisfaction, high out-of-pocket costs, and cost-related access problems.[51] A survey conducted with the Employee Benefit Research Institute found that people enrolled in HSA-eligible high-deductible health plans were much less satisfied with many aspects of their health care than adults in more comprehensive plans.[59]

    • People in these plans allocate substantial amounts of income to their health care, especially those who have poorer health or lower incomes.
    • Adults in high-deductible health plans are far more likely to delay or avoid getting needed care, or to skip medications, because of the cost. Problems are particularly pronounced among those with poorer health or lower incomes.
    • Few Americans in any health plan have the information they need to make decisions. Just 12 to 16 percent of insured adults have information from their health plan about the quality or cost of care provided by their doctors and hospitals.

    Some policy analysts say that consumer satisfaction doesn't reflect quality of health care. Researchers at RAND Corporation and Department of Veterans Affairs asked 236 vulnerable elderly patients at two managed care plans to rate their care, then examined care in medical records, as reported in Annals of Internal Medicine. There was no correlation. "Patient ratings of health care are easy to obtain and report, but do not accurately measure the technical quality of medical care," said John T. Chan, UCLA, lead author.[60][61][62]

    Health policy[edit]

    According to a 2006 Zogby poll, seven in ten voters back Congressional action to allow HSA participants to pay for their insurance premiums using money in their savings plans.[63]

    See also[edit]

    References[edit]

    1. ^ ab"Health Savings Accounts". Health401k.com. Retrieved 2010-12-09.
    2. ^"Health Savings Accounts (HSAs)". U.S. Treasury. Retrieved 2015-12-13.
    3. ^ ab26 CFR223
    4. ^"Affordable Care Act: Questions and Answers on Over-the-Counter Medicines and Drugs". IRS. September 3, 2010. Retrieved December 9, 2010.
    5. ^Christman, Michael D. (April 10, 2020). "COVID-19 and Benefits: 'Now, a Word from Your HR Director'". National Law Review.
    6. ^"Employer Health Benefits 2007 Annual Survey"(PDF). Kaiser Family Foundation. September 2007. Retrieved 2015-05-17.
    7. ^"Employer Health Benefits 2012 Annual Survey"(PDF). Kaiser Family Foundation. September 2012. Retrieved 2015-05-17.
    8. ^Hannah Yoo, January 2007 Census Shows 4.5 Million People Covered by HSA/High-Deductible Health Plans, AHIP, April 2007
    9. ^Hannah Yoo, January 2008 Census Shows 6.1 Million People Covered by HSA/High-deductible Health Plans, America's Health Insurance Plans, April 2008
    10. ^Press Release for Report Entitled "HSAs: Moving Beyond the Growing Pains,"Archived 2011-10-05 at the Wayback Machine Celent, January 7, 2008
    11. ^Hannah Yoo, January 2009 Census Shows 8 Million People Covered by HSA/High-deductible Health Plans, America's Health Insurance Plans, May 2009
    12. ^John E. Dicken, Director, Health Care, U.S. Government Accountability Office, "Health Savings Accounts: Participation Increased and Was More Common among Individuals with Higher Incomes," Letter to Henry A. Waxman, Chairman of the House of Representatives Committee on Oversight and Government Reform and Pete Stark, Chairman of House of Representatives Subcommittee on Health What is the purpose of a health savings account on Ways and Means, dated April 1, 2008
    13. ^Center for Policy Research, America's Health Insurance Plans, http://www.ahip.org/HSA2012/
    14. ^J. P. Morgan Chase, http://www.jpmorgan.com/visit/hsasnapshot
    15. ^"Health Savings Accounts". Retrieved 2016-09-02.
    16. ^"HSA Assets Approach $100 Billion Through First Half of 2021". devenir.com. Devenir Research. Retrieved 2021-09-16.
    17. ^ ab"Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service". www.irs.gov.
    18. ^"Publication 15: (Circular E), Employer's Tax Guide"(PDF). Internal Revenue Service. 2015. p. 16. Retrieved 2015-04-01.
    19. ^"HSA Center 2012 Limits". what is the purpose of a health savings account. Retrieved 2011-11-02.
    20. ^"MMA Section 223 - Health Savings Accounts". congress.gov. Retrieved 2020-11-02.
    21. ^IRS Rev. Proc. 2018-30. Retrieved June 8, 2018
    22. ^ ab"IRS Rev. Proc. 2019-22". irs.gov. Retrieved 8 May 2020.
    23. ^ ab"IRS Rev. Proc. 2020-32"(PDF). irs.gov. Retrieved 2 Nov 2020.
    24. ^"The HSA Federal State Income Taxes - HSA for America". HSAforAmerica.com. Retrieved 2020-11-02.
    25. ^ abc"IRS Publication 969". www.irs.gov. Retrieved 2011-07-19.
    26. ^"IRS Rev. Proc. 2009-29"(PDF). irs.gov. Retrieved 17 August 2017.
    27. ^"IRS Rev. Proc. 2010-22"(PDF). irs.gov. Retrieved 17 August 2017.
    28. ^"IRS Rev. Proc. 2011-32"(PDF). irs.gov. Retrieved 17 August 2017.
    29. ^"IRS Rev. Proc. 2012-26"(PDF). irs.gov. Retrieved 17 August 2017.
    30. ^"IRS Rev. Proc. 2013-25"(PDF). irs.gov. Retrieved 17 August 2017.
    31. ^"IRS Rev. Proc. 2014-30"(PDF). irs.gov. Retrieved 17 August 2017.
    32. ^"IRS Rev. Proc. 2015-30"(PDF). irs.gov. Retrieved 17 August 2017.
    33. ^"IRS Rev. Proc. 2016-28"(PDF). irs.gov. Retrieved 17 August 2017.
    34. ^"IRS Rev. Proc. 2018-27"(PDF). irs.gov. Retrieved 8 May 2018.
    35. ^"IRS Rev. Proc. 2018-30"(PDF). irs.gov. Retrieved 8 June 2018.
    36. ^"Self Directed Accounts – HSA (Health Savings Account)". New Direction Trust Company. Retrieved 2020-04-15.
    37. ^"2006 IRS Publication 502". www.irs.gov. Retrieved 2007-10-21.
    38. ^"HSA.pdf"(PDF). treasury.gov. Archived from what is the purpose of a health savings account original(PDF) on 2007-11-20. Retrieved 17 August 2017.
    39. ^"IRS outlines changes to health care spending available under CARES Act". www.irs.gov. Retrieved 2021-04-27.
    40. ^"Can I Roll HSA Contributions Into a Roth IRA?". Finance - Zacks.
    41. ^Ponce, Ernesto. "High-Deductible Health Plans Defined". coverageoneinsurance.com/.
    42. ^"US Department of the Treasury". treas.gov. Archived from the original on 2005-02-10. Retrieved 2015-04-07.
    43. ^"HSA Basics"(PDF). treas.gov. Archived from the original(PDF) on 2007-08-14. Retrieved 17 August 2017.
    44. ^"Internal Revenue Bulletin – Notice 2004-50". irs.gov. August 16, 2004. Retrieved 2015-04-07.
    45. ^"Compare Medigap Insurance Plans for 2021". MedicareFAQ. 2020-03-03. Retrieved 2020-10-02.
    46. ^Thomas Wilder and Hannah Yoo, "A Survey of Preventive Benefits in Health Savings Account (HSA) Plans, July 2007," America's Health Insurance Plans, November 2007
    47. ^Mitch Daniels (March 1, 2010). "Mitch Daniels: Hoosiers and Health Savings Accounts". WSJ. Retrieved 2015-04-07.
    48. ^Gladwell, Malcolm (August 29, 2005). "The Moral Hazard Myth". The New Yorker. Archived from the original on June 30, 2007. Retrieved 2007-06-28.
    49. ^"Health Care Coverage in America: Understanding the Issues and Proposed Solutions"(PDF). Alliance for Health Reform. Archived from the original(PDF) on 2007-10-25. Retrieved 2007-07-10.
    50. ^Hannah Yoo and Christelle Chen, Estimated Income Characteristics of HSA Accountholders in 2008, America's Health Insurance Plans, May 2009
    51. ^ ab"Health Savings Accounts and High-Deductible Health Plans: Why They Won't Cure What Ails U.S. Health Care". cmwf.org. Retrieved 2015-04-07.
    52. ^"Health Insurance Facts | Smarter Consumers of Healthcare". Health Harbor. Retrieved 2012-09-28.
    53. ^"Top HSA Providers of 2019: Our Annual Checkup". Morningstar, Inc. Retrieved 2020-08-18.
    54. ^October 16, Michael S. Fischer

      DBS HSA Administration

      DBS makes HSAs easy to understand and use.

      Health Savings Accounts (HSAs) are individually owned, tax exempt trust accounts that employees and employers can contribute money into that can be used to pay for future qualified health care expenses. An employee can become an account holder and may contribute to an HSA as long as they have a qualified High Deductible Health Plan (HDHP) and there is no other form of first dollar medical coverage. Contributions to the HSA can be made pre-tax through a Section 125 Cafeteria Plan which can save participants approximately 30% in taxes on everyday health care expenses. HSAs are easy to use and qualified health, dental and vision expenses can be paid by using a debit card or check. In addition to tax savings, HSAs allow for the carryover of unused monies. Participants own the money in the account even if their health coverage changes.

      Request a quote now!

      Why outsource HSA administration to DBS?

      DBS provides a comprehensive HSA service package for clients and participants. Driven by leading technology, clear communication and exceptional customer service, DBS helps ease the transition from traditional health plans to consumer-driven health plans with HSAs. DBS works with clients and brokers to design, communicate, implement and manage a successful HSA program. DBS can also integrate the client HSA with other account-based plans such as LPFSAs, PDFSAs or PDHRAs.

      What does a DBS comprehensive HSA Administration Package include?

      • HSA review and plan design meeting
      • Preparation of legal documents
      • Provide for pre-tax HSA contributions within FSA Cafeteria Plan Document
      • Establish Limited Purpose FSA (LPFSA)
      • Establish Post-deductible HRA (PDHRA)
      • Trustee options available for the employer including DBS provided debit cards or employee choice of trustee
      • Employee group meetings/webinars
      • Communication and enrollment materials
      • Posting and tracking of participant and client contributions
      • Secure download of payroll data from client
      • Dedicated Claims Specialist assigned
      • Knowledgeable and professional customer service team
      • Client online access to view contributions, transactions and balances
      • Online tool for viewing & commenting on withdrawals and categorizing the expenses as qualified or non-qualified
      • Year-end participant contribution and expense report available to assist in completing tax returns
      Источник: https://www.dbsbenefits.com/services/health-savings-accounts/

      Health savings accounts (HSAs)

      Overview

      A health savings account (HSA) is a tax-advantaged account, available exclusively to crew members enrolled in an HSA qualified medical plan, to help pay for health care expenses. The HSA offers financial benefits beyond the tax advantages, like continuous rollover and the ability to invest your balance. The HSA also offers flexibility in how and when you can use the account. These reasons make the HSA is a great vehicle to help crew save for current and future health care expenses.

      Advantages of participating in an HSA

      Vanguard contributionVanguard makes contributions to your HSA (at HealthEquity) to help increase your savings potential.
      Triple tax advantagesThe HSA offers triple tax advantages not available through any other type of medical account:
      • HSA contributions are not taxed or tax-deductible*
      • Account earnings made through interest and investing are not taxed
      • Withdrawals use for qualified medical expense are not taxed.
      Investment opportunityYou can invest your balance in select Vanguard funds to help your balance grow.
      FlexibilityThe HSA is an individual account in your name and you can direct when and how you receive reimbursement from the account.
      • You can use the account to pay for out-of-pocket health care expenses for yourself or any of your tax dependents–even if your dependents are not covered under your medical plan.
      • Unused balances rollover every year, so you never lose your balance! Also, if you retire or leave Vanguard for other employment, you can bring your HSA with you.
      • You can change your HSA contribution throughout the year. If you’d like to increase, decrease, or stop your pre-tax HSA payroll contributions based on your changing health care or savings needs, you can do so. Your contribution change will be effective the first day of the following month.
      Save for retirementIt’s expected that an average couple will need nearly $300,000 in retirement to pay for health care expenses. Using funds saved in your HSA for these types of expenses prevents you from tapping into other retirement savings to pay for health care. This is why the HSA is considered a great supplement to Vanguard's Retirement and Savings Plan in planning for retirement expenses.
      • If don’t need your HSA for health care expenses, you can access your balance to pay for other types of expenses. Just note that any withdrawals for expenses other than eligible health care expenses will be taxed as regular income, and you will be subject to paying a 20% penalty.
      • After age 65, you can use the funds in your HSA for any purpose. Withdrawals for non-qualified medical expenses will be subject to income tax, but no penalty will be applied.
      * California and New Jersey do not allow tax-free employer or employee contributions.

      Vanguard will pay your HealthEquity annual administration fee as long as you remain employed at Vanguard and enrolled in one of the HSA plans.

      Annual contribution limits

      You can find the annual contribution limits for an HSA here. This page also highlights how Vanguard's employer contributions and your personal contributions all count toward the annual HSA contribution limits.

      HealthEquity

      HealthEquity is Vanguard's HSA vendor partner. All Vanguard and crew HSA contributions will be deposited into your HSA with HealthEquity.

      Soon after you elect and HSA-qualified medical plan, you will receive a welcome packet from HealthEquity. This packet will provide details on tools and resources available to HSA account holders. It also includes instructions on how to log in to your already-established HSA and how to transfer existing HSA balances to HealthEquity, if you choose do to so.

      Accessing your account

      You direct when and how you receive reimbursement from your HSA, and HealthEquity offers simple, transparent ways to access and manage the funds. You can:

      • Pay for health care services with HealthEquity's Visa debit card.
      • Use the online portal to:
        • Set up how your contributions are managed. Contributions can be kept as cash, invested, or both.
        • Request reimbursement.
        • Send payments directly to a health care provider.
        • Designate or update your beneficiaries.
        • Request a distribution, a transfer, or a rollover.
      • Manage your account with HealthEquity's mobile app.
      • Once you receive your welcome packet, you can access your account at any time. When accessing your account for the first time, you'll be asked to set up a user name and password.

      For more information

      If you have questions, or need help navigating your account, contact HealthEquity 24/7 at 866-346-5800 or visit HealthEquity's resource site. If you need additional assistance, please create a case or call Crew Central™ at Ext. 1CREW.

       

      Источник: https://crewconnect.vanguard.com/totalrewards/benefits/healthandwellness/medical/hsa_overview.html
      ; PM, 2020 at 02:24. "Which HSAs Are Best for Investing?". ThinkAdvisor. Retrieved 2020-10-29.
    55. ^Acheson, Leo (October 14, 2020). "The Top HSA Providers of 2020". Morningstar.com. Retrieved 2020-10-29.
    56. ^"Surveys Indicate Consumers Are Happy With HSA Offerings, But Want Some Changes In Custodial Accounts". HSA Finder.com. Archived from the original on 2007-04-15. Retrieved 2007-07-10.
    57. ^"Without the Correct Approach and Implementation, Long-Term Effectiveness of Account-Based Health Plans Could Be Undermined, Towers Perrin Research Shows" (Press release). Towers Perrin. May 22, 2007. Retrieved 2007-07-10.
    58. ^"Health Savings Accounts: Early Enrollee Experiences with Accounts and Eligible Health Plans". gao.gov. US GAO. Retrieved 2015-04-07.
    59. ^Fronstin, Paul (December 2009). "Findings from the 2009 EBRI/MGA Consumer Engagement in Health Care Survey"(PDF). EBRI Issue Brief. Employee Benefit Research Institute (337). ISSN 0887-137X. Retrieved 23 November 2020.
    60. ^Wessel, David "Capital: In health care, consumer theory falls flat". The Wall Street Journal, 2006-09-07.
    61. ^"RAND study finds patients' ratings of their medical care do not reflect the technical quality of their care", press release, RAND Corporation, May 1, 2006.
    62. ^"Patients' Global Ratings of Their Health Care Are Not Associated with the Technical Quality of Their Care". Annals of Internal Medicine. Retrieved 2015-04-07.
    63. ^"My Blog – My WordPress Blog". zogby.com. Retrieved 2015-04-07.

    External links[edit]

    Источник: https://en.wikipedia.org/wiki/Health_savings_account

    Health Savings Accounts (HSA) can be used for both medical expenses and saving for retirement — here's how you can get started

    If you have a HDHP, you should consider opening a Health Savings Account for its tax benefits and the opportunity to invest for the future. But, this account takes a bit more planning, as you have to look at your current health insurance and health situation.

    Like Westlin recommended above, a HDHP is best for those who are generally healthy and have little to no medical expenses. So if a HDHP makes sense for you, a HSA may be a great tool to build wealth.

    Catch up on Select's in-depth coverage of personal financetech and toolswellness and more, and follow us on FacebookInstagram and Twitter to stay up to date.

    Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
    Источник: https://www.cnbc.com/select/what-is-a-health-savings-accounts-hsa/

2 Replies to “What is the purpose of a health savings account”

  1. Story bta rhe ho ya kuchhh btaoge faltu bakwas khali Achha ye btaiy maine account khola aur jb paise nikale to 10000 tak hi nikal payga aisaa kyu agr mujhe jyada nikalne ho to kya krne pdege..

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