09-25-2024 Primetime - Flipbook - Page 28
28 A Special Advertising Section of Baltimore Sun Media Group | Wednesday, September 25, 2024
OPEN ENROLLMENT
Is a Health Savings
Account (HSA)
right for you?
Funds can be utilized
to lower your
out-of-pocket costs
By Gregory J. Alexander, Contributing Writer
M
edical expenses are … well … expensive. Wouldn’t it be nice if you had other health care expenses. “This is a
some extra money to help pay for deductibles, copayments, and other
health care expenses and be able to lower your out-of-pocket health
care costs? Well, actually there it is. A Health Savings Account (HSA) “is a type of
savings account that lets you set aside money on a pre-tax basis to pay for qualified
medical expenses,” according to HealthCare.gov.
“If you have a qualified High
Deductible Health Plan (HDHP), you
can contribute to an HSA much in
the same way you contribute to an
IRA plan through a pre-tax payroll
deduction,” says Garry L. Wilson, CIC,
RHU, licensed insurance advisor, certified patient protection and Affordable
Care Act professional, and owner of
AmCareBenefits, LLC (www.amcarebenefits.com) based in Harford County,
Maryland. AmCareBenefits offers a host
of services, including individual and
group employee benefits, and advice on
Health Reimbursement Arrangements
(HRA) and Health Savings Accounts
(HSA).
Wilson notes that those with a High
Deductible Health Plan may not have
a secondary health insurance plan or
be enrolled in Medicare. HDHPs have
a lower premium and high deductible
and typically only covers preventive
services before the deductible, according to HealthCare.gov. However, those
who have an HSA can take advantage
of a lower premium and use funds from
the HSA to help pay the deductible and
good option for someone who does
not anticipate having many health care
claims or simply wants a lower premium,” Wilson notes.
Per IRS guidelines in 2025, an
HDHP is a health insurance plan with a
deductible of at least $1,650 if you have
an individual plan or a deductible of at
least $3,300 if you have a family plan.
Some employers match contributions
to HSAs, and some HSAs earn interest.
Also, your HSA balance rolls over year
to year, so you can build up reserves to
pay for health care items and services
you need later. According to the IRS, in
2025, you can contribute up to $4,300
annually if you are covered by a highdeductible health plan just for yourself,
or $8,550 if you have coverage for your
family.
Wilson points out that funds in an
HSA can only be used for qualified
medical expenses. “Typically, anything
that an insurance plan would cover
– and then some – can qualify,” says
Wilson, who recommends checking out
the IRS’s guide to qualified medical
expenses at www.irs.gov/pub/irs-pdf/
p502.pdf.
“Most notably, funds from a health
savings account can be used for vision
and dental care, which some insurance
plans do not cover anymore,” Wilson
says. So, if you need new glasses or
contacts, or need to see the dentist
for an annual cleaning an X-ray and
possible a filling for a cavity, your HSA
funds come in handy.
Some other health care-related
expenses that a health savings account
can address that a typical health care
insurance plan may not include the cost
of meals, transportation and lodging at
a hospital or similar institution if a prin-
HSA right for you,
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