Maximizing Your HSA Savings
It’s simple: Grow your health savings by contributing! Even if your employer makes contributions towards your HSA, you should be contributing monthly if you want to maximize your savings. A smart way to contribute is to think about how much you’re saving on premiums, and then put those savings in your HSA. Remember, HSA dollars are your dollars. They don’t expire, and they will roll over year after year.
2. Understand price variance in procedures.
Many people don’t know this, but there is a great lack of price transparency when it comes to costs of medical procedures. For example, you could pay $600 for a blood test at Facility A, or drive down the road to Facility B and get the same test for $200. The same is true for baby delivery, office visits, mammograms, and many services; even within the same metro area. Being aware of price variance, and knowing how to find more affordable options, can be the difference of up to thousands of dollars in reduced medical costs (which means more savings in your HSA).
3. Be aware of prescription costs.
Not only is there cost variance for medical procedures, there is also cost variance in prescribed medications. Instead of going for name-brand medications, opt for the generic brand when possible. Just call one of our PHAs to see what options are available to you.
4. Utilize tax advantages.
Don’t forget to report your HSA contributions on your tax return. Say you make $65,000 per year. That means your federal income tax will be 22% (if you’re the head of a household, not single). Say you put away $5,000 in your HSA. You don’t have to pay taxes on that $5,000. That’s a savings of $1,100 (22% of $5,000)! HSA contribution limits for 2020 are $3,550 for self-only coverage and $7,100 for families, and those tax savings can add up over the years.
5. Invest your HSA dollars.
Many with HSAs aren’t aware that they can invest their HSA dollars. As your HSA grows, investing a portion of those savings can be a smart way to grow them even faster. Call our PHAs to see how you can invest your HSA funds.
There’s a very simple, effective method to save for retirement: being consistent with your savings and starting early. And take advantage of the wisest investment opportunities by maximizing tax-advantaged savings platforms, like a health savings account—or HSAs. On...
Songwriters tend to enjoy lamenting over the fact that it’s too late. From One Republic to the Cornelius Brothers to Carole King, it’s apparently too late to apologize, too late to turn back now, or just generally too late, baby. But one topic these musicians can’t...
2019 brought us some pretty cool things: Baby Yoda The first-ever image of a black hole A World Cup win for the U.S. Women’s National Soccer Team An expansion of preventive care benefits for people with HSA-qualified high-deductible health plans True, number four may...