health savings account
OVERVIEW
Take control of your family medical spending with an Health Savings Account from Western Nebraska Bank. HSAs are used in combination with high deductible health plans,—health insurance plans that carry a high deductible. With an HSA you receive a tax break: you can make deposits with pre-tax dollars and any interest you earn is also tax-free.
HSAs go hand-in-hand with high deductible health plans (HDHP) because they allow you to spend pre-tax dollars on qualified medical expenses that your insurance doesn’t cover.
Here’s how it works: a HDHP generally has a lower monthly cost (premium) than traditional health insurance, but a higher deductible (money you pay before your health insurance policy kicks in). So you pay less for your insurance, but potentially more for your health care until you meet your deductible. To help meet those costs, many people with HDHPs direct the money they save in monthly premiums to a special bank account designed just for medical expenses—an HSA.
Here is how it works
An HDHP generally has a lower monthly cost (premium) than traditional health insurance, but a higher deductible (money you pay before your health insurance policy kicks in). So you pay less for your insurance, but potentially more for your health care until you meet your deductible. To help meet those costs, many people with HDHPs direct the money they save in monthly premiums to a special bank account designed just for medical expenses—an HSA.
Unlike a flexible spending account (sometimes also called a cafeteria plan), all the money you set aside in an HSA is yours to keep. So anything you don’t spend this year isn’t lost. The money remains in your account year after year, where it can be invested, grow and then spent on future health care expenses.
As long as you spend the money and any earnings on qualified medical expenses (as defined by the IRS), you won’t pay taxes on it.
Contact your local Western Nebraska Bank today to learn more about opening an HSA.
