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Can someone explain (in everyday words) a HSA account for medical insurance.?(US Healthcare)?

My husband works for Panera Bread and they offer the HSA only. We had aetna QPOS we had a family deductible and paid a premium every two weeks, and the employer paid a percentage too. Im hoping this HSA covers normal office exams (id our sons have an ear infection..etc) and Prescriptions? How you this work?

Public Comments

1. A HSA plan means that the plan has a high deductible (generally $2,500 per individual/$5,000 per family). This means that you have to pay for the first $2,500/$5,000 of medical expenses before the insurance will start picking up the tab......so unless it is a catastrophic illness that requires a hospital stay, you're pretty much out of pocket for your medical bills. However, you can invest money into a HSA account, which is a medical account that you pay for. The money will sit in your account and you can use this money to pay for your medical expenses not covered by insurance. The advantage of the HSA account is that the money is yours, and any unused expenses at the end of the year is carried over into future years. Generally, prescription medicines does not count towards your deductible. However, you are given the negotiated discount pricing for the medicines.
2. jseah gave you a very good description. However, I must add that any money you put into an HSA account is taxed like an IRA. The money comes right off your income and you are taxed on remaining income. So, anything you pay for out of your HSA account is with tax free money. You can also use this tax free money to pay for a lot of things your medical plan does not cover. Also, I think your prescriptions will go toward the deductible. I do not sell ones that don't. For a list of what he money can be used for and some more info go to www.hsabankusa.com.