HSA’s Are Even Better with a Debit Card
By Steve Wedig
Many working Americans are already sold on the idea of HSA’s. HSA’s (which stands for health savings accounts) are a great way to cut down on healthcare costs. Contributions to an HSA can be deducted from your taxes and any interest that is accrued in the account will also be tax free. Additionally, there is no restriction on when money in an HAS must be used. Furthermore, the accounts are completely portable, meaning they are not tied to your job. A number of small businesses contribute a set amount to HSA’s on behalf employees instead of providing traditional health insurance. Federated Bank has been offering these valuable accounts for years, but recently a new feature has made them even more beneficial. The accounts now have an accompanying debit card. So what’s the big deal with that? There really are two main advantages to having a debit card tied to your HSA.
Easier to Pay
The first advantage is that the debit card makes it easier to pay for your health care expenses out of your HSA. Whether you are paying for a regular doctor visit, purchasing prescriptions or other qualified health-related supplies, or making payments on a large medical expense, you can use your debit card. Paying in this manner ensures that the money is withdrawn from the right account. Without the debit card, healthcare costs were usually paid out of another account. Money was then moved from the HSA to cover the payment. The debit card essentially removes a step, making life easier for you while reducing human error.
Easier to Manage
Not only does the debit card make it easier to pay, but it also makes it easier for you to manage and track your health care expenses. Since all your medical expenses are coming out of the single account, you have a straightforward record of what you have spent as well as your balance of saved money that remains. Additionally, account records are more accurate and informative since they reflect when payment was actually made, not when you remembered to move the money into the account.
If you are an individual thinking about opening an HSA or a business owner considering this offering as a benefit to your employees, stop by and talk with us to learn more about HSA’s. We can get you more detailed information and help you evaluate whether they are right for your situation.
