Health Savings Account

No matter what you might be saving towards, Suncoast provides the products, services, and individual attention that make it easier to save. When it comes to saving on out-of-pocket health costs, most people could benefit from opening a health savings account to have a separate fund reserved specifically for healthcare expenses. Read this quick guide to our health saving accounts, which can help you and your family save for healthcare expenses.

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Health Savings Account (HSA)

 

If you or your family is covered by a high-deductible health insurance plan, receiving medical attention could become a major financial burden. Health Savings Accounts (HSAs) can help manage those costs. When you enroll in an HSA, you qualify to receive tax-deductible contributions and tax-free distributions for all qualified medical expenses. HSAs are also available to help with your medical expenses while in retirement.

 

At Suncoast, our credit union HSA is paid into (usually monthly) to pay qualified medical expenses. This can be used by the owner of the HSA, the owner’s spouse, and the HSA owner’s dependents, children, or other immediate family. Unlike many other savings accounts, an HSA does not require an opening deposit.

 

Contributions are tax-deductible

 

If you are covered by a High Deductible Health Plan, you can reduce your taxable income.

 

Multiple contributors 

 

Eligible contributors to a HSA can be the individual owner, any individual on their behalf, the individual’s employer, or another entity.

 

Contributions remain in the HSA until needed

 

This plan is not a "use it or lose it" plan, like some FSAs (Flexible Spending Accounts). If there is a change in your employment or health insurance, you still keep your HSA assets and can always use them to pay for qualified health expenses tax-free.

 

HSA Eligibility

 

To be eligible to make contributions to an HSA Account, an individual must:

 

  • Already be a member of Suncoast Credit Union
  • Be covered solely under a High Deductible Health Plan as defined by the IRS. Read more about these types of plans at www.irs.gov/publications/p969
  • Cannot be enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return

 

Have no additional health coverage, except what is permitted under Other health coverage


Open an HSAManage My HSA

Qualified Medical Expenses

 

All HSAs in the US have set coverage options, and pay for set treatments and procedures. These are known as qualified medical expenses. When you open an HSA with Suncoast, you can withdraw your funds to pay for routine health costs, such as:

 

  • Dental care
  • Maternity expenses
  • Long-term care insurance premiums
  • Mental healthcare
  • Physical therapy
  • Alternative healthcare (including acupuncture, homeopathy, traditional Chinese medicine, and nutritional consulting)
  • Ambulance fees
  • Preventative healthcare (including blood tests, vaccines, and lab tests)
  • Prescription drugs
  • Special needs health care (including wheelchairs, guide dogs, and special classes)

 

We're aware that when you are looking to withdraw money for any of these costs, they may have a wide price range, based on your service provider. If you aren't sure about the best option for any of these treatments, give us a call so our team can help you get the most out of your HSA.

 

To avoid additional fees, you'll need to ensure that any withdrawn money from your HSA will be used with licensed medical facilities and practitioners.

 

Restrictions

 

All HSAs have maximum annual contribution limits and spending limits.

 

Our financial restrictions change yearly, so check with the IRS for account limit information: visit www.irs.gov, or call their toll-free hotline at 1-800-829-1040. Be aware that if you use the money stored in your HSA for non-medical expenses before you reach the age of 65, you will be charged a 10% early withdrawal penalty, and you will have to pay income taxes on the amount you take out.

 

An HSA is generally a great financial option for most people, but you won’t be automatically enrolled in one. If you have a high-deductible health insurance policy through your work, talk with your human resources department to find out how (and when) you can sign up. If you obtain the policy on your own, contact your financial institution or insurance agent. You will need to decide how much money you want to contribute, and if you want to use the plan to pay for current medical costs or invest for future expenses.

 

High Deductible Health Plan

 

To qualify as eligible to open an HSA, you need to already have a high-deductible health plan, or HDHP.

 

What is a High Deductible Health Plan?

 

This is a type of health insurance plan that has a larger annual deductible than other health plans but also charges a lower monthly premium. HDHPs are thought to lower healthcare costs, and also increase patients' awareness of the real cost of medical expenses.

 

An HDHP qualifies for tax-advantaged health savings accounts, which fully cover routine preventive care. This means that if you have an HDHP, you aren't responsible for co-pays or coinsurance. 

 

How To Set Up An Account

 

You can set up your HSA account online with Suncoast, and view the account on SunNet, SunMobile, and through SunTel. You won't be able to perform transactions on them, but you can always access the account using your HSA debit card and checks.

 

If you are not able to use checks or a debit card, you’ll either need to fill out an HSA withdrawal form with a member advocate at one of our branches or receive an HSA withdrawal form by mail and process the transaction over the phone.

 

Learn More 

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