HSA Day is observed annually on October 15. The holiday is targeted at raising more awareness about the importance of health savings accounts. H.S.A. stands for health savings account. This medical savings account is used to save money to cover healthcare expenses. The money deposited into such accounts is controlled and monitored by the individual, not an insurance company or employer. Though an employer may contribute to the H.S.A., the account is ultimately under the control of the individual, and the money remains theirs even if they change jobs.
History of HSA Day
H.S.A. stands for health savings account and is a medical savings account used to save money to cover healthcare expenses. The funds deposited by individuals or companies into such an account are controlled and monitored by the individual, not an insurance company or employer. It has been suggested that H.S.A.s were created as a way to control healthcare costs, the reasoning being that an individual would be more likely to spend more wisely on healthcare money that comes out of their own pocket.
A positive side to owning an H.S.A. is that it is a tax-advantaged account. The deposited funds are not taxable, even when withdrawn for eligible expenses. In fact, some H.S.A.s might even accrue interest. The money could be invested in mutual funds or other investments, tax-free. Unused account balances at the end of the year can be rolled over into the following year. A major benefit to employers is that their contributions to their employees’ H.S.A.s are tax-deductible. Furthermore, employees’ contributions to their own H.S.A.s help reduce payroll taxes.
A person must be below the age of 65 and have a high-deductible insurance plan to be able to open an H.S.A. For those who have spouses that use their insurance as secondary coverage, the spouse must also have a high-deductible insurance plan. Individuals enrolled in Medicare cannot contribute to an H.S.A. as of the first month of their enrollment.
HSA Day timeline
Congress begins discussing the establishment of medical savings accounts (M.S.A.s).
Congress begins the Archer Medical Savings Accounts experiment.
Health savings accounts are established in federal law by President George W. Bush.
A survey done by America's Health Insurance Plans (AHIP) reveals that 4.5 million people in the U.S. are covered by H.S.A.-qualified health plans.
HSA Day FAQs
Is there an income limit for opening an H.S.A?
No, as long as a person meets the main eligibility requirements, there is no income limit.
What does an H.S.A plan cover
An H.S.A. can pay for deductibles, copayments, coinsurance, and other qualified medical expenses.
What is the maximum amount that can be contributed to an H.S.A.?
Currently, the maximum amount for individual coverage is $3,650, while the maximum for family coverage is $7,300.
How to Observe HSA Day
Find what works for you
It's an indisputable fact that saving for health care is highly important. Consider your past medical history and current medical situation and find out what kind of insurance plan works best for you and your family.
Open an H.S.A.
After doing your research, if it turns out that an H.S.A. suits your health needs, don't hesitate to open one. Just make sure that you're eligible first.
Spread the message
No one should miss out on proper health care just because they can't afford it. Everyone deserves to learn about the benefits of opening an H.S.A. So share this information with your close friends and family.
5 Types Of Health Insurance
Platinum health insurance plans typically cover about 90% of a person's medical expenses; the individual pays 10%.
Gold health plans usually cover an average of 80% of medical costs.
Silver health insurance plans cover about 70% of a person's medical expenses, and the individual must pay the remaining 30%.
Bronze health plans typically cover about 60% of a person's medical costs, while the individual pays 40%.
Catastrophic health insurance covers health emergencies and preventive care.
Why HSA Day is Important
Health is wealth
The bottom line is that health is wealth. Humans are prone to injury and illness, which is why it is so important to prepare for such unplanned contingencies by saving and investing in health care.
H.S.A.s are tax-free
The best part about owning an H.S.A. is that all savings and withdrawals are tax-free. This is important so that more people are encouraged to save without the burden of paying taxes.
H.S.A. savings increase
Another important benefit of H.S.A.s is that the money contributed can be invested. Even better, the earnings made from such investments are still tax-free.
HSA Day dates