What Can HSA Be Used For? A Complete Guide to Health Savings Account

Health Savings Accounts, often called HSAs, provide a helpful way to save your money for healthcare costs while also giving you tax benefits. Centier Bank, which is based in Indiana and serves places like South Bend, Gary, and Chesterton, believes that knowing how to make the most of your HSA can be a great financial tool. 

In this guide, we will explain the important details about HSAs and talk about the types of expenses you can pay for with your HSA. Plus, we'll share some local tips to help you manage your healthcare money better.

What is an HSA

A Health Savings Account, often called an HSA, is like a special savings account that can help you and your family pay for important medical expenses. Unlike Flexible Spending Accounts (FSAs), HSA money doesn't disappear if you don't use it all in one year. You can keep any leftover money for the future.

Centier Bank knows how important it is to have financial solutions that fit the needs of our local communities. Whether you live in smaller places like Valpo or Michigan City or in bigger cities like Fort Wayne or Indianapolis, an HSA can be a valuable addition to your financial plans. It's a handy tool to have, and we're here to help you make the most of it.

How Does an HSA Work?

An HSA is like a team player with a High Deductible Health Plan (HDHP)[1]. 

When you put money into your HSA, you get a special tax break that makes your income that's taxed by the government smaller. And here's a cool part: the money inside your HSA grows! When you spend the money from your HSA on the right medical stuff, you don't pay taxes on it, either[2]. 

It's like getting a double tax bonus!

Both you and your boss can put money into your HSA. You can use this money to pay for medical things for you, your husband or wife, and your kids. It's super helpful for folks living in Indiana, whether you're in a town like Lafayette or West Lafayette or out in places like Chesterton or Indiana Dunes. Your HSAs can be like a superhero for your medical bills.

What Expenses are HSA-Qualified? 

Your HSA is like having a trusty friend that's always there when you need it. It can be your go-to for covering those everyday medical expenses that pop up unexpectedly. It's not just for the serious stuff; it's for those routine check-ups before you cheer on your favorite racers.

You can use HSA funds to help keep your health (and smile) in check. But it's not just about medical expenses – your HSA is your partner in dental care, vision check-ups, and even those little things you may not have thought of, like over-the-counter medicines and acupuncture. 

Qualified Medical Costs Including over-the-counter (otc) medications

Your HSA's main job is to help with basic medical stuff, both large and small qualified medical expenses. 

That means it can pay for things like: 

• Doctor's visits
• Times you have to stay in the hospital
• Medicine your doctor prescribes
• Special medical gadgets 

Indiana folks can find HSAs super handy, whether it's for taking care of those fishing injuries from Coho salmon trips or just regular check-ups before heading to the exciting Indy 500 race.

Dental Expenses

Looking after your teeth is another thing your HSA can help with. 

It covers stuff like: 

• Regular check-ups
• Teeth cleanings
• Braces (if you need them)
• Dental surgeries

So, whether you call South Bend or Gary your home, your HSA can make it easier to keep your smile healthy and shining.

Vision Expenses

Taking care of your eyes is important, too, and your HSA is there for that. 

It pays for things like: 

• Eye check-ups
• Glasses
• Contact lenses 

So, whether you're enjoying the beautiful sights at Indiana Dunes or going to events like the Indianapolis Film Festival, your HSA can make sure your eyes stay in great shape.

Other Health Care Expenses

Besides the usual medical, dental, and vision stuff, your HSA can also help with other health costs. 

This includes things like: 

• Travel for medical reasons
• Treatment for addiction
• Some over-the-counter medicines 

Centier Bank is here to support the different financial needs of Indiana residents, whether you're having fun in Fort Wayne or exploring the cool culture of Indianapolis.

What Can't You use an HSAs for?

cover. It's important to know these limits because using your HSA for the wrong stuff could mean you have to pay extra taxes.

For example, you can't use your HSA for things like:

• Gym memberships
• Cosmetic surgeries to look prettier
• Elective surgeries that you choose to have

It's really important to follow these rules to make sure you're doing everything the right way with your HSA and avoid any money problems later on.

Let Centier Help You Save for Your Health!

In conclusion, Health Savings Accounts (HSAs) are like a treasure chest of financial help for your healthcare costs, and they come with extra tax perks. Knowing what kind of expenses your HSA can cover is a big deal and can really make a difference in how well you manage your money. 

In a nutshell, an HSA can bring you peace of mind and keep your finances safe. Think of it as protection for your future and your health.

At Centier Bank, we're here to be your financial guide on this journey. 

To learn more about how an HSA can work for you or to open an account, just hop over to our Health Savings Account page.

And if you ever want some one-on-one advice, don't be shy — set up a meeting with our money experts. 

Sources: 

[1] https://www.healthcare.gov/glossary/high-deductible-health-plan/

[2] https://www.irs.gov/publications/p969