Health Savings Accounts (HSA)
A Health Savings Account (HSA) is a versatile savings account that works in conjunction with a High Deductible Health Plan (HDHP) to pay for qualified expenses of an account holder. HDHP is a popular type of coverage in many of today’s employee benefit programs. An HSA is a personal investment account offering a great deal of flexibility in using the assets. The funds in the account can be used to pay expenses not normally covered by your health insurance—but, on a tax-free basis.
The account holder has complete control over it. You have the freedom to use HSA funds for out-of-pocket expenses at the health provider of your choice. If you are currently enrolled in a HDHP, opening an HSA is a great way to cover any medical needs that don’t meet the large deductible requirements.
You save money with a more cost-efficient insurance program and still enjoy
high-quality health coverage.
Who is a qualified individual?
- covered under an HDHP (High Deductible Health Plan)
- not covered by another health plan that is not an HDHP
- not enrolled in Medicare
- not eligible to be claimed as a dependent on another individual's federal income tax return
What is a qualified expense?
The determination of a qualified expense is the sole responsibility of the IRS. Covered items are defined by IRS code 213(d) and are listed in IRS publication 502 and 969. Please visit www.irs.gov for a more detailed list of qualified expenses.
What are the benefits?
- HSA checks
- convenient debit card
- monthly statements to assist you in tracking your medical expenses
- online access to your account
- no transaction limitations
- no monthly fee for the first 12 months. After 12 months, a service charge of $2.50 will be imposed every statement cycle unless a minimum daily balance of $1,500 is maintained.
Interest earning account on balances of $500 or greater.
Health Savings Accounts are subject to limitations and/or penalties imposed by the Internal Revenue Service. Please visit www.irs.gov.
For more information, please contact one of our Personal Bankers.