Colorado Health Savings Accounts (HSAs)
HSA Bank Rates & Fees
HSA Bank Paper Enrollment Application
HSA Bank Online Enrollment Application
What is a Health Savings Account (HSA)?
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account. Click here to get a free, instant quote on Colorado, HSA compatible health insurance plans.
You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.
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What Is a High Deductible Health Plan (HDHP)?
You must have an HDHP if you want to open an HSA. Sometimes referred to as a catastrophic health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e., your deductible) but will generally cover you after that . Of course, your HSA is available to help you pay for the expenses your plan does not cover.
HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services.
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How can I get a Health Savings Account?
Consumers can sign up for HSAs with banks, credit unions, insurance companies and other approved companies. Your employer may also set up a plan for employees as well.
How much does an HSA cost?
An HSA is not something you purchase; it's a savings account into which you can deposit money on a tax-preferred basis. The only product you purchase with an HSA is a High Deductible Health Plan, an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA.
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Changes to HSA Rules Beginning January 1st, 2011
The enactment of the "Patient Protection and Affordable Care Act" ("PPACA") on March 23, 2010, will have little impact on Health Savings Accounts (HSAs), but here are two changes to be aware of:
Reimbursement for Over-the-Counter Drugs and Medicines
The definition of qualified medical expense for HSAs was amended to exclude over-the-counter drugs unless the drug is a prescribed drug or is insulin. This change applies to distributions made from HSAs beginning January 1, 2011.
Additional Tax on HSA Distributions Not Used for Medical Purposes
Beginning January 1, 2011, the additional tax on disbursements from HSAs that are not used for qualified medical expenses will be increased from 10 percent to 20 percent of the disbursed amount.
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