A Health Savings Account is an excellent way to pay for out-of-pocket medical expenses, copays, coinsurance, and save for retirement healthcare costs. You can get a High Deductible Health Plan to pair with an Health Savings Account plans in Washington state by contacting McGregor Benefits.

*McGregor Benefits is not engaged in rendering tax advice. Please consult your tax advisor for HSA tax information.

Health Savings Accounts
Safety, Savings, Accessibility

What Is An HSA?

A Health Savings Account (HSA) allows you to deposit funds into a tax-exempt account. You can use these funds to pay for qualified out-of-pocket medical expenses, or you can save for retirement healthcare expenses. The funds in your account may earn interest over time.

What Are the Benefits Of An HSA?

Is getting an HSA a good idea? Should you consider Health Savings Account plans? These pros and cons will help you decide:

Pros

Triple Tax Benefits. Contributions to the account are tax-exempt, you don’t pay taxes on the interest the funds earn, and if you withdraw funds for eligible expenses you needn’t pay taxes on those either.  Any funds let in the account roll over, so it is not a use it or lose it at the end of the year. .

Cons

The biggest downside of getting an HSA is that you need to have an eligible HDHP. These type of plans do not have copays. Everything is subject to the deductible except preventive care.

Have questions? Reach out to us. Our experienced HSA brokers will help you understand the concept and make an informed decision.

Who Are HSA Plans Good for?

These plans are great if you want lower premiums. They are also great if you are very healthy or have lots of health issues. These plans are also good for those who want to save for future medical expenses.

Am I Eligible For An HSA Plan?

You can get Health Savings Account plans for individuals if you are enrolled in qualified High-deductible Health Plan (HDHP), are not enrolled in Medicare, are not claimed as a dependent on another person’s taxes, have not received benefits from the Department of Veterans Affairs in the last three months, and are not covered by your or your spouse’s FSA, HRA or other non-HSA health plan.

You need to meet all these criteria in order to be eligible for an HSA. Talk to your broker to learn more.

HSA Contribution Limits 2020

The Health Savings Account plan limits for 2020 are $3,550 for an individual account, $7,100 for a family account. If you are 55 or older you can contribute an extra $1,000 for catch-up contribution.

How An HSA Plan Works

An HSA has 2 separate parts. Your HDHP (medical plan) and a HSA bank account. If you go to the doctor for a cold, for example, the doctor will send you a bill. You can pay that bill out of the HSA bank account tax free. Your bank typically gives you a Health Savings Account card when you open your account.

Examples of HSA Eligible Expenses

This is not a comprehensive list. For more detailed information, please see IRS Publication 502 titled Medical and Dental Expenses.  There is a 20% penalty for non-qualifed expenses. Please discuss any questions with your tax professional. 

  • Acupuncture
  • Ambulance services
  • Chiropractic
  • Childbirth
  • Dental Treatments
  • Drug Addiction Therapy
  • Fertility Enhancement
  • Nursing Home
  • Prescription Drugs
  • Therapy or Counseling
  • Vision Care

Who Offers HSA Eligible Medical Plans For Individuals?

You can get an HSA eligible medical plans from all local insurance carriers, including, Ambetter, Kaiser Permanente, Regence BlueShield and Lifewise. Contact your insurance agent to learn more about Health Savings Account eligible medical plans.

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