6 Benefits of choosing an HSA plan

A health savings account (HSA) can help you lower your taxes, pay for health care more easily and even save for retirement.

HSAs are only available with high-deductible health plans. You can use HSA funds to pay for eligible health care expenses and for out-of-pocket costs your health plan doesn’t cover. To see if an HSA is right for you, visit Further (formerly SelectAccount®).

Learn more about an HSA

1. Save on taxes

Your HSA contributions go into your account before taxes. The money you save to your HSA lowers your taxable income – so you may pay less in taxes.

Examples:

You’re a college student
Your tax bracket: 10%
Your HSA contribution: $25/month ($300/year)
You save: $30 year in taxes (10% of $300 = $30)

You’re a young professional
Your tax bracket: 15%
Your HSA contribution: $100/month ($1200/year)
You save: $180 year in taxes (15% of $1200 = $180)

You’re a retirement-bound professional 
Your tax bracket: 25%
Your HSA contribution: $300/month ($3,600/year)
You save: $900/year in taxes (25% of $3,600 = $900)

2. Save on your medical expenses

Use your HSA funds to pay coinsurance, copays and your deductible (all tax-free). You can also use HSA funds to pay for some costs your plan doesn’t cover, like dental care, orthodontia contacts and eyeglasses. See eligible health-related expenses.

If you use HSA money for non-eligible expenses, you will pay taxes and a penalty on the money you took out . The penalty no longer applies starting at age 65.

3. Your money works harder in an HSA

  • Money in your HSA account earns tax-free interest.
  • Any unused HSA funds roll over to the next year.
  • You can spend your HSA dollars on eligible health care expenses, or save and investment them for the future.

4. You're in control

You decide when and how to spend or save the money in your HSA. The money is yours forever. It doesn’t expire, and you can take it with you if you change jobs or switch to another high-deductible health plan.

5. An HSA is an investment

You can invest a portion of your HSA balance in mutual funds, stocks and bonds. Generally, this option is available only when you maintain a certain account balance.

6. Save for retirement

You can use your HSA to save for retirement. At age 65, you can use the funds for any purpose without a penalty. The money you take out to pay for eligible health care expenses continues to be tax free. You also can take money out for other reasons without paying a penalty.

Learn about saving for retirement with an HSA

More articles & resources

How a health savings account works
7 ways to save on health care
Different types of medical spending accounts

 

This is general information about how plan benefits work. Review the Summary of Benefits and Coverage and your specific health plan benefit booklet for information about how your plan works.

It’s up to you to always check if your provider is in your health plan network before you receive services. Not all providers are in every network. You may pay more or for all of your healthcare costs if your provider is out of your network or does not have a contract with Blue Cross (this is called a non-participating provider). You can verify if your provider is in your network by calling customer service at the number on the back of your member ID card.

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