As a foreigner living in the U.S., I have no idea what is this and it’s benefits. Would it help me pay less on my health insurance?
Thanks in advance!
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In the US you can deduct medical expenses from your income so that money isn’t taxed. But this is a lot of paperwork and such, so we only allow you to do that when you have a lot of medical expenses that exceed a certain percentage of your income.
But now we have HSA! A portion of your income is paid into a bank account, and that money isn’t counted towards your taxable income. An HSA can reduce your taxable income by up to $3,650 if you’re single and $7,300 if you have a family covered under insurance. You don’t really pay less on insurance per se, but this sets aside money to pay for your deductible, which means you maybe get insurance that costs less.
What do you do with it? You use it for all medical expenses including glasses and dental. It can still help if you are normally very healthy and almost never spend money at the doctor. You can also buy much of the stuff in the health section of a market with it. Your insurer will have a list of what is allowed. Also, if you shop in that section, just scan the HSA first and it will automatically pay for any eligible items, then scan your regular card. You can even use it to buy exercise equipment if it’s ordered by a doctor for weight loss for a specific ailment, like high blood pressure or diabetes.
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