Finding the best health insurance can make a world of difference in the safety and security of your family’s health. Comprehensive health coverage can also make a significant difference in the state of your finances. If you are looking to adjust your health insurance and save money, consider a Health Savings Account. This type of account can help you save on health insurance, control your health care spending, and reduce your taxes. Take a look below to see how a Health Savings Account could help you better provide for the healthcare of your whole family.

Health savings account 101

WHAT IS A HEALTH SAVINGS ACCOUNT?

According to the Health Savings Account Center, a Health Savings Account (HSA) combines high-deductible health insurance with a tax-favored savings account. This type of account uses the funds from your savings to help pay your deductible, and once you meet the deductible, the insurance begins to pay.

WHAT ARE THE BENEFITS OF A HEALTH SAVINGS ACCOUNT?

A Health Savings Account has the advantages of being 100% tax-deductible and tax-free. Additionally, any money unused by the end of the year isn’t forfeited. Instead, it will grow tax-deferred.

WHAT CAN A HEALTH SAVINGS ACCOUNT PROVIDE?

A Health Savings Account can be used to pay off health insurance premiums when you are between jobs. It can also be used to cover qualified long-term care and Medicare premiums as well as out-of-pocket medical expenses. A Health Savings Account can also pay for many living expenses after the age of 65.

WHAT MEDICAL EXPENSES ARE ELIGIBLE FOR COVERAGE?

Any medical expense must be used to alleviate a physical or mental illness among which can include annual physical examinations, dental treatment, hearing aids, contact lenses, special education, x-rays, operations, psychiatric care, therapy, and much more. To confirm that your medical expense will be covered, refer to your tax advisor.

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WHY SHOULD YOU SWITCH TO A HEALTH SAVINGS ACCOUNT?

An HSA will benefit many individuals, but like any financially secure plan, you should take a few factors into consideration before you make the big switch. A Health Savings Account can help you save money on health expenses—in fact, a Health Savings Account can help you build tax-advantaged savings for your health expenses, as well as build interest and use it tax-free for certain medical expenses. Tax-free and tax-deductible, a Health Savings Account can be easy to set up with a qualified bank, making it more convenient for you.

Switching to a Health Savings Account could change the way you think about health care. To learn more about the HSA’s available at Kensington Bank, meet with a Kensington Bank Specialist today. Visit our Contact page to get started!

Open an HSA during our promotional period to qualify to win a $100 Visa Gift Card, one will be given away at each location!