Health savings accounts or HSAs can be used to pay for qualified medical expenses, such as deductibles and copays, and to invest in your future.
Getting to know your HSA
By saving money in an HSA, you can put away money for current medical expenses or prepare for your or your family’s future health care costs. You may also use it as a buffer to protect your retirement budget from out-of-pocket medical expenses.
According to recent estimates, a married couple retiring at age 65 will need about $315,000* in today’s dollars.
There are several ways to contribute to your HSA. You can do this any time of year, up to the annual limit set by the U.S. Internal Revenue Service or IRS. In addition to this list, Publication 969 from the IRS has more information on making contributions.
Here are the ways you can contribute to your HSA:
Have a set amount taken out of your paychecks before taxes
Deposit taxed money and deduct from your income for taxes
Move money from an IRA to your HSA — a one-time rollover
Your employer may also choose to contribute to your HSA as well as help you boost your savings.
Using the money in your HSA
When you go to the doctor’s office, the doctor will bill Blue Cross for your services. Once the bill has been processed, you’ll get an Explanation of Benefits or EOB. Any out-of-pocket charges you may owe will be on your EOB. You’ll receive a bill from your doctor for the out-of-pocket amount, which can be paid with HSA funds.
HSA debit card
When you visit a doctor, pick up a prescription or need to pay for other qualified medical expenses, use your HSA debit card. Those payments are immediately deducted from your HSA.
Managing your plan
It’s easy to manage your health plan and HSA in one place with your Blue Cross Blue Shield of Michigan member account. Log in or register through our mobile app or at bcbsm.com to: