The money you contribute to an HSA has no “expiration date.” You can withdraw funds you need to pay for everyday out-of-pocket health care expenses or save them for care you may need years down the road. But often, FSA funds must be used by the end of a calendar year, or you lose them. FSAs also allow you to use pre-tax dollars, usually deducted from your paycheck, for medical expenses. They’re often confused with FSAs, or flexible spending accounts, which date to the 1970s. HSAs were first introduced to the public in 2004.
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“Many people who have an HSA don’t understand the full breadth and depth of what it can do for them,” says Michael DiSimone, CEO of PayFlex, part of the CVS Health family of companies and a benefits provider for more than 30 years. Your HSA belongs to you, and the money in your account stays with you year-to-year, through job changes and into retirement.ĭespite their popularity, there’s still a lot of opportunity for HSA holders to make the most of their accounts. The funds can be used for current medical expenses or saved for the future. Paired with a qualified HDHP, an HSA allows you to contribute pre-tax earnings to a federally insured savings account. Michelle is one of a growing number of people taking advantage of an HSA. “I was glad I had the money put aside to pay for this,” she says. When her toddler suffered a minor injury, Michele was able to use the account to cover an unexpected emergency room visit. The mother of two from Pittsburgh uses the HSA for her deductible, prescriptions and routine expenses like over-the-counter allergy medications. That’s why she’s a big fan of her health savings account (HSA). She likes the low monthly premiums and wants to use her savings to fund her deductible and other medical expenses that might come up. Like many Americans, Michele Hosner has a high-deductible health plan (HDHP). Patient care programs & quality assurance.Get SBC (Summary of Benefits and Coverage).