Although there are plenty of different insurance options in the States, it is not a rare case for them not to be able to cover all your expenses or the procedures taking place, especially when talking about serious health problems.

And because of that, it might be hard for some of you to pay for the part not covered by your insurance. But you need to know that you have options allowing you to ease this burden, such as Health Savings Accounts. Read this article further and find out all about them!

What is a Health Savings Account?

Health Savings Account, or HSA, are accounts that can be used only for health-related payments, and fortunately for us, the sums that you are putting in such an account can be pre-tax ones.

However, it is not possible for everyone to create a Health savings account, as there are certain criteria that should be met. 

Thus, you must have a high-deductible health plan, which conditions vary from one year to another, but here are the main points that you should qualify for:

• At least 1,350 dollars should be deducted for an individual in regard to some health services, or at least 2,700 dollars for the whole family.
• Total annual out-of-pocket expenses should be no more than 6,650 dollars for a person or 13,300 for the whole family.
• No other health care coverage should be held by you. There are, of course, some exceptions, such as specific illnesses or dental care.

As for the process of receiving a health savings account, there are plenty of places for that, starting with your insurance company and ending with most banks you know about. After receiving a debit card linked to your health savings account, you are free to deposit as much money as you want, but, of course, within the annual contribution limit.

It is also possible to deposit the whole annual contribution limit to your health savings account at once, but you need to be eligible for that on the first day of the last month of the tax year, which is usually December the 1st. Being older than 55 and eligible for HSA at the same time gives you an opportunity to deposit additional 1,000 dollars about the annual contribution limit.

Here is the list of people that are eligible to use your health savings account:

• You and your spouse;
• Any dependents listed on your tax returns.

However, please remember that HSA can only cover expenses made after the process of setting up your account. Thus, if you made a whole annual contribution deposit to your account on December the 1st, you cannot use the money placed there for medical services made before that time.