What About Health Savings Accounts?

In this health insurance enrollment period, are you thinking about signing up for a health savings account (HSA)? Courtesy of KaiserHealthNews.org (KHN) here’s some information that might help you decide.

Q: Last year, my wife and I opened a health savings account. Since then, my account has been moved twice, and we have no choice as to who manages it. We can’t shop around for someone with lower fees. I think that is a big flaw in the system. Why can’t I choose to have my HSA with the same company I have my brokerage account?

A: You might be able to. Any contributions you make or your employer makes to an HSA account belong to you, and you may transfer the funds to a different HSA with another HSA provider that offers lower fees or better services if you want to, according to Treasury Department officials. If you want to move the money to the company where you have your brokerage account, you may, provided that it offers such an account.

HSAs were introduced in 2004. They must be linked to a health insurance plan that meets certain standards, including, for 2015, having a deductible of at least $1,300 for individual coverage and $2,600 for a family plan. The accounts enable people to save money tax free to use for medical expenses. Depending on the account, contributions may earn interest, or account holders may invest the money in the market.

Many HSA account providers charge a monthly maintenance fee. Usually, they range from a few dollars to $7 or $8. Because some provide services along with the fee (such as a debit card, online expense calculator, etc.), while others charge for essentially no services, ask each one you’re considering for a list of services so you can compare your options.

For more information about HAS contribution limits, link here.

Patrick Malone & Associates, P.C. listed in Best Lawyers Rated by Super Lawyers Patrick A. Malone
Washingtonian Top Lawyer 2011
Avvo Rating 10.0 Superb Top Attorney Best Lawyers Firm
Contact Information