What this means for you
Changes to federal legislation expanded access to HSAs. Individuals who purchase health insurance through the ACA Marketplace may now be able to open an HSA with their Bronze or Catastrophic plan.
This change may affect people who purchase their own insurance, including self-employed professionals, gig workers and individuals who buy coverage through the ACA Marketplace.
Why open an HSA?
- Reduce your taxable income.* Your HSA contributions help you save on taxes by lowering your taxable income, which could help keep your annual income below the limit needed to earn ACA premium tax credits (known as the "subsidy cliff").
- Use funds now or later. Pay for qualified healthcare expenses with your HSA like deductibles, prescriptions, dental, vision and more at time of service or save your receipts if you pay out of pocket to reimburse yourself in the future.
- Keep your funds for life. Your HSA belongs to you even if you change jobs, switch insurance plans or retire.
- Roll over your funds. Your HSA balance carries over year after year without the need to spend all your funds annually like FSAs and other benefit accounts.
- Invest your HSA dollars for long-term growth. Build your balance tax-free* through interest or eligible investment options.**
Why consider an HSA with a Bronze or Catastrophic plan?
Bronze and Catastrophic plans typically offer lower monthly premiums but higher deductibles. An HSA is a tax-advantaged savings account designed to help you prepare for out-of-pocket costs that come with these plan types and provide long-term savings potential.
Instead of paying healthcare expenses solely from your checking account, an HSA allows you to:
Contributing to your HSA will reduce your taxable income* when you file your taxes. That means more of your earnings can go toward qualified healthcare expenses, including deductibles, prescriptions and more while also helping to keep your annual income below the limit needed to earn ACA premium tax credits.
Use your HSA to budget for predictable expenses like doctor visits, prescriptions, dental care, vision services, emotional health services and hundreds of IRS-qualified expenses. Because HSA dollars are used tax-free* for qualified healthcare costs, you’re using money more efficiently than paying those expenses from a taxable account. Setting funds aside in advance can make higher deductibles easier to manage.
Accidents and illnesses don’t always come with a warning. An HSA helps you prepare for unplanned healthcare expenses, so you’re not relying solely on credit cards or emergency savings.
Your HSA is yours to keep, even when you change jobs, switch insurance plans or retire. Unused HSA funds roll over year after year, can earn interest* and be invested.** Over time, your account can become a long-term savings resource for future healthcare needs, including those in retirement. It’s a smarter way to manage today’s costs and plan for tomorrow.
| Feature | HSA Bank® |
|---|---|
| Tax advantages | Yes |
| Investment options** | Yes |
| Mobile account access | Yes |
| Funds roll over | Yes |
| Debit card for spending | Yes |
| Learning center resources | Yes |
| Live customer support 27/4 | Yes |
Am I HSA eligible?
You may qualify for an HSA if you:
- Are enrolled in an eligible Bronze or Catastrophic health plan
- Aren’t covered by other disqualifying health coverage
- Aren’t enrolled in Medicare or TRICARE
- Aren’t covered by a general purpose FSA or HRA
- Haven’t received medical benefits from Veterans Administration in the last three months
- Can’t be claimed as a dependent on someone else’s tax return
- Have a valid email address, Social Security number and a primary residence in the United States
Open an HSA in minutes
Opening an HSA with HSA Bank is simple:
Helpful resources
IRS guidelines
IRS-qualified healthcare expenses you can pay for with your HSA funds.
Review the list
Frequently Asked Questions
Get answers to the most-asked questions about HSAs, FSAs, HRAs and more.
Read FAQsGet answers to frequently asked questions (FAQs)
Many individuals use HSA Bank for both healthcare spending and long-term savings. With investment access**, rollover funds and digital account tools, HSAs can support both short-term and long-term healthcare planning.
Yes. Recent legislation expanded HSA eligibility to include federal or state marketplace Bronze plans. You can open an HSA with your plan provided you satisfy other HSA eligibility criteria.
Yes. Catastrophic plans purchased through the federal or a state marketplace are HSA eligible. You can open an HSA with your plan provided you satisfy other HSA eligibility criteria.
Your HSA belongs to you. Funds remain in your account and continue to roll over year to year even if you change employers, insurance plans or move into retirement. You can continue to contribute to your HSA as long as you are enrolled in an HSA-eligible healthcare plan.
HSA contributions and earnings are not subject to federal taxes and aren’t subject to state taxes in most states. Consult a tax professional for information about your state.
No, HSA funds roll over from year to year, allowing your balance to grow over time.
Yes, HSA Bank offers multiple investment options** that allow you to potentially increase your savings over time.
It’s easy to use your HSA Bank Benefits Card to pay for IRS-qualified healthcare expenses with HSA funds at point of service or online. You can also reimburse yourself later in your online account for any qualified expenses paid out of pocket.
Anyone may contribute to your HSA on your behalf, as long as you are HSA eligible and the amount is within the annual IRS contribution limits.
The main requirement for opening an HSA is to have an HSA-qualified health plan that meets IRS guidelines for the annual deductible and out-of-pocket maximum. Your HSA-qualified health plan could be a Bronze, Catastrophic or high-deductible health plan (HDHP).
To be an eligible individual and qualify for an HSA, you must also meet the following requirements:
- You must have a valid email address, Social Security number and a primary residence in the United States.
- You must be covered by the HSA-eligible health plan on the first day of the month in which you plan to start contributing to your HSA.
- You can’t be covered by any other type of health plan, including Medicare Part A or Medicare Part B.
- You can’t be covered by TRICARE.
- You can’t have used your medical benefits from Veterans Administration for any non-service-connected disabilities at any time during the previous three months (to contribute to an HSA). Note: Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that such disability was not incurred or aggravated in line of duty in the active military, naval, or air service.
- You can’t be claimed as a dependent on another person's tax return.
- You aren’t covered by a general purpose healthcare Flexible Spending Account (FSA) or Health Reimbursement Account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
Bronze and Catastrophic plan holders pay no monthly maintenance fees. Fees for other plan types may vary depending on account balances, employer arrangements and investment activity.
*HSA contributions and earnings aren’t subject to federal taxes and aren’t subject to state taxes in most states. Contact a tax professional for information about your state.
**SECURITIES AND INVESTMENTS
| Not Insured by FDIC or Any Other Government Agency | Not Bank Guaranteed | Not Bank Deposits or Obligations | May Lose Value |
|---|
Past performance is not indicative of future results.
The HSA Invest program is administered by DriveWealth, LLC, a registered broker-dealer and member FINRA/SIPC. Securities products and services are offered through LeafHouse Financial Advisors, LLC, an SEC-registered investment advisor. Registration does not imply a certain level of skill or training. Additional information about LeafHouse Financial Advisors, LLC, including investment strategies, fees and objectives, can be found in its Form ADV Part 2 and Form CRS, which are available in your online account.
HSA Bank is not registered as a broker-dealer or investment advisor. Neither HSA Bank nor DriveWealth, LLC provide investment advice to HSA Invest program investors. HSA Bank, DriveWealth, LLC and LeafHouse Financial Advisors, LLC are not affiliated and not responsible for the products and services offered or provided by the other.
