- Many Expenses Qualify
Medical expenses such as deductible and coinsurance and expenses for dental, vision and chiropractic care can all be covered by HSA.
- Contributions from others
Anyone include but is not limited to your employer or relative can make contributions to your HSA. For specific limits on the contribution, please go to IRS website.
As long as the withdrawals from your HSA are used for qualified medical expenses such as deductible, there will be no taxed incurred. In addition, interests and earnings on the money in the account is also tax exempt.
Your HAS is portable in spite of your working status or health insurance plans. Your HSA stays with you and only you can decide how much money to set aside, how and when to use the money deposited in it.
- Less premium
The premium for a high-deductible health plan is less than that for traditional health insurance in that the insurance company no longer pays for routine healthcare.
Deposit in the HAS will roll over to the next year at the end of the year in spite of the expenses within a calendar year.
- Beneficial for the economy
One of government’s incentives to set up the high-deductible health plans is to introduce consumer-driven supply and demand as well as control inflation in health care and health insurance. These plans have actually encouraged customers from various backgrounds to spend comparatively sparingly and obtain more preventive health care.