Today, we will be talking about the frequently asked questions about HSA that the majority of people have. These questions will also help you to know about them.
What is an HSA?
To cope up with the medical expenses, there are many people who open the Health Savings Account. They make their deposits on this account and they can easily be used it during any medical emergencies either by using the debit card provided by the company or by showing them the receipt of the expenses. There are several more advantages of opting for an HSA.
How does it work?
Your employer or you are depositing the money in the HSA account after properly setting it up. This money will be deposited in your account just like the way it is done in the savings account. But the money which has been invested here will be tax-free and you will be earning a better interest when compared to that of the bank accounts. So when you are using this money for any medical expenses like dental or prescriptions or any other charges then they will provide you with a debit card which you can use and the payment will be deducted automatically or you can easily send them the copy of the receipt and they will send back the money in the HSA.
Who can avail the HSA?
A person who is having a highly deductible plan of health insurance, which includes self-employed people. Moreover, the employee needs an account with flexible spending.
When a person can use the money?
The person investing in the HSA has the liberty of using this money anytime. Here you can determine the amount which you will be paying every year. Even if the contribution of the year has not been completed still you can use the money.
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