Thrifty Thinking - HSA Store shares tips for maximizing Health Savings Account (HSA) funds on National HSA Awareness Day

 October 15 marks National HSA Awareness Day and Health-E Commerce^®, parent brand to FSA Store^® and HSA Store^®, the first and leading online stores dedicated exclusively to selling FSA- and HSA-eligible products, is on a mission to educate millions of consumers about the benefits of using HSAs to reduce their taxable income and pay for healthcare expenses now and in retirement.

“At a time when individuals and families continue to battle high inflation and healthcare cost increases, an HSA gives them the power to put more of their income in their pocket, to save on clinical services and personal wellness products they use everyday, and to cover expenses in retirement,” said Itamar Romanini, vice president and general manager, HSA Store. “HSA Awareness Day is the perfect time to educate consumers about the flexibility of HSAs and how these accounts can fit their needs regardless of their age or stage of life.”

Established to call attention to the importance of tax-advantaged accounts, HSA Awareness Day is an opportunity to educate Americans about the unique triple tax advantage of these accounts: deposits are tax deductible, growth is tax deferred, and qualified spending is tax free.

According to the experts at Health-E Commerce, here are four ways consumers can maximize the benefits of their HSA.

1. Save on everyday health expenses: Understanding what’s eligible is the most common hurdle for HSA users. That’s why HSA Store removes all of the guesswork by selling only products that are deemed eligible by the IRS. HSA Store also offers a comprehensive, searchable online eligibility list and a selection of more than 2,500 eligible products, which makes it easy to find exactly what they need.
2. Open an HSA, even if you can’t fund the account: Individuals and families who are enrolled in a qualified high-deductible health plan are encouraged to open an HSA as soon as they enroll in their health plan, even if they are not able to fully fund the account from day one. According to Romanini, there is usually no cost to open an HSA and consumers have the flexibility to make contributions as able throughout the year or to pay for expenses out of pocket, save the receipts, and make contributions to the HSA and reimburse themselves at a later date.
3. Track healthcare expenses over time: Most HSA users don’t realize that they need to track their HSA purchases over time, in the event their taxes are ever audited, or that they can reimburse themselves for expenses incurred during times when they had a zero balance in their account. In most cases, this means paperwork. However, HSA Store simplifies this task for account holders with an easy-to-use expense dashboard that allows users to effortlessly track their spending and upload healthcare receipts according to each tax year.
4. Save for the future: It’s estimated that a couple who is retiring in 2023 will need to have saved $315,000 or more to pay for healthcare expenses in retirement, so it pays to be prepared. An HSA allows consumers to invest unspent funds into stocks, bonds, and mutual funds. Those contributions can then be used without penalty to pay for healthcare and other expenses in retirement. Finding the right balance between saving now and investing for the future is important, which is why HSA Store offers an HSA future value calculator to help consumers find the right balance.

“While HSAs are a sound future savings strategy, it’s important that consumers understand how they can also use these tax-free funds to pay for items like bandages, sunscreen, menstrual care items, and pain medication – things they already buy and use everyday,” said Romanini. “HSAs give consumers the potential to save an estimated 30% on health-related expenses, depending on their tax bracket, and that’s a valuable financial edge in today’s market.”

For additional guidance on making the most of a health savings account, visit the HSA Store Learning Center.

 

###

About Health-E Commerce

Health-E Commerce is the parent brand to FSA Store,  HSA Store and WellDeservedHealth, a family of online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill, a popular private-label line of health products that benefits Children’s Health Fund and enables customers to make a donation with each purchase. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses.