Save tax-free for current and future qualified medical expenses.
These days, most families spend at least a few thousand dollars a year on out-of-pocket medical bills. Even with expensive insurance plans, deductibles seem to never be reached and costs are continually high.
With current regulations, healthcare is a requirement for every adult in the country. More than that, it’s vital to at least have catastrophic coverage in case of a serious emergency. You don’t want to break your arm and be stuck owing tens of thousands of dollars.
For catastrophic coverage, there’s the High Deductible Health Plan. It works like this: You pay a smaller monthly premium and are given coverage for emergency situations. Your deductible, the amount that must be covered prior to getting any coverage, is higher – and changes every year. This plan doesn’t cover standard doctor visits outside of those that fall under the definition of “preventive” – such as annual physicals. It also does not cover prescription drugs.
Because of the high out-of-pocket expenses with High Deductible Health Plans, federal institutions instated the Health Savings Account (HSA). This is a tax-free savings account that allows you to directly deposit money from your paycheck before federal and state taxes. You use this money to pay for qualified medical expenses such as doctor visits and prescription drugs.
The medical expenses you pay out of your HSA are also tax-free, and any leftover money in the account at the end of the year just rolls over into the next year.
The account has a limited amount of annual deposits, and changes every year. Your Heartland Bank Customer Service Representative will let you know all the numbers.
To learn more about Heartland Bank HSA, visit any of our convenient locations today, or give us a call.
Customer Care Center: 888-897-2276
Monday-Friday: 7:00 am to 6:00 pm
Saturday: 8:00 am to 1:00 pm