Health Savings Accounts
There are a number of ways to control our health care expenses. In addition to making better lifestyle choices, consider a consumer-driven health plan (CDHP) and its companion, the health savings account (HSA). In order to have an HSA, you must have a CDHP.
An HSA, which is a special, tax-qualified consumer bank account, allows you to set aside money to pay for qualified health-related costs. You can direct money to the account and, a bonus of state employees, if you are covered by one of the state’s CDHP/HSAs, the state will prefund the account and make biweekly payments throughout the calendar year. Regardless who makes deposits into the account, all funds in your HSA belong to you, the employee. Even if you leave state employment. The money goes with you and it’s tax-free. Unlike the flexible spending account, money in an HSA accumulates. There is no use-it-or-lose-it consequence. The money can roll over year after year.
With an HSA, you can decide how much to contribute to the account, whether to pay for current medical expenses from it or save for the money for future use.
Tower Bank provides the HSA program for the state of Indiana. To learn more about your Tower Bank HSA account, visit the State Personnel Benefits website.