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Health Savings Accounts

Health Savings Accounts (HSAs) are great alternative ways to cover healthcare expenses. HSAs are fairly new, and allow you to save up for medical expenses to use when the need arises. The accounts can be used from year to year and don’t expire, and you will be paid interest on the account that you can invest in mutual funds, if desired.

To be eligible, you must already have a High Deductible Health Plan (HDHP), or catastrophic health plan, in place. An HDHP is relatively inexpensive, as it I more or less is cheaper than a normal health insurance plan, but will not pay for the first few thousand dollars for medical expenses. Thusly, whatever you save on your insurance can be deposited into your HSA, which will cover the expenses that the HDHP does not.

You can apply for an HSA through your insurance company, credit unions, banks, or any other qualified company. Or your employer could have an HSA that is set up for employees. Since the program is still new, you have a general limit of $2,850 that you can add annually to an HSA for an individual, $5,650 for families, and the those from ages 55‐65 can add an extra $800.


To qualify for an HSA, the minimum deductible of your HSA must be no less than $1,100 for individual coverage and $2,200 for families. You also have a limit on the amount of your deductibles annually: $5,500 for individuals and $11,000 for family coverage. You also cannot have another health insurance plan that in not qualified as a high‐deductible policy, whether for an individual or dependent. You may, however, have dental, vision, disability, and long‐term care policies. Those under the age of 65 are qualified to have an HSA, but cannot have Medicare or VA benefits. But if you already had an HSA prior to Medicare or the VA benefits, then you can keep the HSA; however, you can no longer deposit into it.