Maximize your HSA e-Newsletter
Vol. 16, Issue 7
Health Savings Accounts Just Got Stronger
Provisions within the CARES Act made the tax-advantaged savings of your HSA even more valuable
At a time when personal health is at the front of everyone’s minds, it doesn’t hurt to get a little good news about your health care strategy.
With the passage of the CARES Act, Congress has released not only $2 trillion in relief and stimulus aid to the people of America, but also a series of provisions that change the way we can use our Health Savings Accounts to save money on necessary, everyday healthcare products.
Pre-Deductible Telemedicine is Temporarily Covered
As a temporary provision, the CARES Act extends telemedicine coverage to HSA holders. Previously, HSA-qualified plans did not offer any pre-deductible telemedicine benefits, as is usually the case with high-deductible plans.
Now, for at least the remainder of 2020, your HSA-qualified plan will cover select telemedicine benefits. The extension of telemedicine is an important safeguard against our country’s health, and we encourage our friends and clients to take advantage of it if needed.
Menstrual Care Products are now Qualified Tax-Deductible Expenses
In a highly anticipated, if not long-overdue change in policy, your tax-free HSA dollars can now be used to reimburse the purchase of menstrual products like tampons, pads, cups, and more. For the hundreds of millions of women across the country, this is a welcome change.
Essentially, it turns a necessary everyday health purchase into a valuable tax-deductible expense.
No Prescription Required for OTC Medications
Another change that has been in the works for a long time is the dropping of the prescription requirement for over-the-counter medications. Under the CARES Act, OTC medicines like Tylenol, Advil, cough medicines, and more are all tax-deductible expenses through your HSA without the need to get a prescription from a doctor.
If it sounds like a no-brainer, you’d be correct. While we believe firmly in the continued expansion of access to HSAs and HSA-qualified plans, there are folks who simply do not. To us, the idea that you’d have to get a prescription for something like Tylenol in order for it to qualify as a necessary health cost is a bit nutty. But then again, so is this whole system that makes HSAs a necessary healthcare tool.
Other Tax-Deductible Costs You Can Pay with your HSA
The money inside of your HSA is yours, and as such you can spend it however, you’d like. However, the triple tax savings are only available on qualified medical expenses. But every dollar you spend on a qualified medical expense is one dollar that you are not paying taxes on.
This is why it is important for HSA holders to take advantage of every qualified expense they can. Each qualified cost, whether it is a bottle of Theraflu or a box of Band-aids, is like tossing money in the piggy bank.
Knowing your HSA-qualified health care costs is the first step to supercharging your HSAs earning potential. Here are some of the lesser known things you can pay for with an HSA:
- Prescription glasses
- Eye care
- Dental work
- Dental plan payments
- Long-term care premiums
- Nutritional supplements when recommended by a doctor
- Psychological and Psychiatric services
Health Savings Accounts are Giving Power Back to the American Consumer
If there is one thing that everybody in the room can agree on, it’s that we are paying too much for health insurance coverage. Whether it’s the obscured and bloated costs of a modern hospital stay or the potential slow-leak financial disaster of unplanned long-term care, as a people we are simply paying too much … getting too little in return.
Health Savings Accounts are one way to take back control from the American healthcare machine. As a long-term investment vehicle, they provide one of the best tax-advantaged savings structures anywhere. In terms of future planning, HSAs are a smart way to protect yourself, your family, and your health from the draining costs of medical care.
If you are interested in learning more about Health Savings Accounts, the CARES Act, or the types of HSA-qualified insurance plans are available to you, feel free to give us a call. Or, you can visit HSA For America to get a quote, schedule a consultation, or browse the helpful information in our blog.
To your health and wealth,
Wiley P. Long, III
President – HSA for America
The HSA for America Maximize Your HSA Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.
© 2020 | Legal Information