Why Choose a Health Savings Account?
Start Saving More on Healthcare
HSA Bank has teamed up with the Village to create an affordable health coverage option that helps you save on Healthcare expenses while protecting your health and finances.
It combines a high-deductible health plan (HDHP) from Blue Cross Blue Shield with a tax-advantaged health savings account (HSA) from HSA Bank. Together, they offer you health, savings and tax advantages that a traditional health plan can't duplicate.
What is an HSA?
An HSA, or health savings account, is a unique tax-advantage account that you can use to pay for current or future healthcare expenses. With an HSA, you'll have:
- A tax-advantaged savings account that you use to pay for eligible medical expenses as well as deductibles, co-insurance, prescriptions, vision and dental care
- Unused funds that will roll over year to year. There's no "use or lose it" penalty
- Potential to build more savings through investing. You can choose from a variety of HSA self-directed investment options with no minimum balance required
- Additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty.
HSA Tax Benefits
- Contributions to HSAs are not subject to federal income taxes.
- Earnings to an HSA from interest and investments are tax-free.
- Distributions from an HSA to pay for qualified medical expenses are tax-free.
What is an HDHP?
An HDHP, or high-deductible health plan, is a major-medical health insurance plan that has a lower premium than traditional health plans. Your HDHP:
- Is a major-medical health plan that is HSA-compatible. That means it can be used with a health savings account from HSA Bank.
- Has a higher annual deductible with lower monthly premiums, which means you'll have less taken out of your paycheck and more to add to your HSA.
- Covers 100% of preventive care, including annual physicals, immunizations, well-woman and well-child exams, and more - all without having to meet your deductible.
- Provides coverage for health screenings, such as blood pressure, cholesterol diabetes, vision, hearing and more.