Health Savings Accounts (HSAs) are tax-advantaged savings accounts that offer a way to help pay for qualified medical expenses. They are typically paired with a High Deductible Health Plan (HDHP) and can be used for preventive care. Understanding how to use your HSA for preventive care can help you save on your healthcare costs.
Researching Qualified Health Care Expenses
The first step to using your health savings account for preventive care is to research which expenses are qualified. Generally, any preventive care that is recommended by a physician or other healthcare provider is considered a qualified expense. This includes preventive care such as checkups, screenings, immunizations, and physicals.
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Exploring Your Coverage Options
It is important to consider how your HDHP and HSA work together when using your HSA for preventive care. Your HDHP should cover 100% of the cost of preventive care, so it is important to check your coverage before using your HSA. If your HDHP does not cover the full cost of preventive care, your HSA can be used to cover the portion that is not covered.
Taking Advantage of Tax Benefits
Your HSA offers tax benefits that make it an attractive option for preventive care. The contributions you make to your HSA are tax-deductible, and any withdrawals you make for qualified expenses are tax-free. This means that you can use your HSA for preventive care without having to worry about the tax implications.