A health savings account (HSA) is a tax-advantaged account that individuals with a high-deductible health plan (HDHP) can use to cover qualified out-of-pocket medical or health expenses.

To open an HSA an individual must be 18 years of age or older and must be enrolled in a qualified high-deductible health plan. You also must not be enrolled in Medicare, claimed as a dependent on someone’s taxes or have any other health coverage except what is permitted by the IRS.

You can check with your employer’s benefits department or insurance carrier to verify if your plan is HSA-eligible, but generally, an HDHP has:

• A higher annual deductible than typical health plans.
• A maximum limit on the sum of the annual deductible and out-of-pocket medical or health expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts, but don’t include premiums.

Opening an HSA allows you to prepare for qualified out-of-pocket medical or health expenses. An HSA can be contributed to pre-tax, lowering your taxable liability while allowing your money to grow.

You own the money in your HSA account so even if you don’t use it or change jobs, your money is safe and can continue to grow. If you are no longer enrolled in a HDHP, you can no longer contribute to the account, but you can continue to withdraw funds to cover qualified expenses.

Up to the annual limit, you can contribute to your own HSA, as can your spouse, employer, and even other family members who are covered under your high-deductible health plan.

You can access your funds by signing into Online Banking, or by using your HSA debit card or checks to pay for qualified medical or health expenses.

A qualified medical or health expense is any expense that would qualify for a medical or dental expenses deduction on your taxes, like an insurance deductible or a copayment. HSA funds can also be used for eligible healthcare expenses incurred by any dependents. Additionally, prescription medications are considered a qualified medical expense. For more information, visit the ‘Distributions from an HSA’ section of the IRS publication on HSAs.

There is no monthly service charge for your HSA at First Financial Bank. Additionally, you can avoid the $3 paper statement fee by opting into eStatements in Online Banking at any time. For any other transaction or servicing fees, please refer to the Special Handling Fee Disclosure.