Understanding HSA-eligible plans

How HSA-eligible plans work

• Coinsurance

  Coinsurance
  A percentage of the cost that you pay for each plan-covered service, like 20%
• Copayments

  Copayment
  A fixed amount you pay for a plan-covered service, like $30
• Deductibles

  Deductible
  How much you’ll pay for certain covered services and items each year before your plan starts to pay (except free preventive services)
• Qualified medical expenses (includes some dental, drug, and vision expenses) – Find an expenses list on IRS.gov.

• May have lower monthly premiums
• Often have higher deductibles
• Are available in many areas and may be offered by your employer
• May provide certain preventive care benefits without a deductible or with a a deductible less than the minimum annual deductible 

• You can deduct the amount you deposit in an HSA from your taxable income.
• Unspent HSA funds roll over from year to year. You can hold and add to the tax-free savings to pay for medical care later. 
• HSAs may earn interest that can’t be taxed.
• You generally can’t use HSA funds to pay premiums.
• Once you turn 65, you can use the money in your HSA for anything you want. If you don’t use it for qualified medical expenses, it counts as income when you file your taxes.
• Six months before you retire or get Medicare benefits, you must stop contributing to your HSA. But, you can use money left in your HSA to help pay for qualified medical expenses that Medicare doesn’t cover.