A Health Savings Account (HSA) is a medical savings account designed to work in combination with a high deductible health insurance plan. The contribution to the account is tax deductible and the money in the account is available to help cover your health care expenses such as:

• deductible on a policy
• drug co-payments
• coinsurance
• over the counter medication

Think of an HSA as you would an individual retirement account (IRA). Both accounts can be invested in a variety of ways such as mutual funds, stocks, bonds etc. The only difference is the IRA is used for any expenses when you reach retirement, and the HSA can be used at any age for all qualified medical expenses.

An advantage of having an HSA (versus an IRA) is that money withdrawn from the account is not normally taxed when used to pay for qualified medical expenses.

Here is how it works with a group health insurance plan:

High Deductible Health Plan & Health Savings Account

Examples of expenses that qualify for reimbursement through your Health Savings Account (HSA):

Dental Treatment Dental X-rays Dentures Dermatologist Diagnostic fees Drug addiction therapy Drugs (prescription) Ophthalmologist Optician Optometrist Oral surgery Vasectomy Vitamins (if prescribed) Wheelchair X-rays Fluoridation unit

Guide dog Gum treatment Gynecologist Hearing aids and batteries Hospital bills Hydrotherapy Insulin treatment Lab tests Therapy equipment Transportation expenses (relative to health care) Ultra-violet ray treatment Vaccines Vasectomy Antacids Allergy Medications

Pain Relievers Cold medicine Anti-diarrhea medicine Cough drops and throat lozenges Sinus medications and nasal sprays Nicotine medications and nasal sprays Pedialyte First aid creams Calamine lotion Stop-smoking programs Wart removal medication Antibiotic ointments Suppositories and creams for hemorrhoids Sleep aids Motion sickness pills

Another advantage to having a Health Savings Account is it can be used with an individual policy or with your employer through a group insurance policy that is HSA compatible.

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