Supporting Your High-Deductible Insurance Plan with an OlyFed Health Savings Account

Even with insurance, there are plenty of costs not covered and those can add up quickly. Angelina Contreras-Duran is a Savings and Retirement Specialist with OlyFed. She says that folks with high-deductible plans who aren’t enrolled in Medicare, should consider their HSA options.

In 2024, a high-deductible plan is one with a $1,650 deductible for individuals and $3,300 for families. The maximum out of pocket expense, the maximum amount an individual or family can spend before the plan covers 100% of costs for the year, is $8,300 for individuals and $16,600 for families.

These plans often have less expensive monthly premiums, so they are popular with many people and businesses.

Contreras-Duran says that OlyFed HSAs work well alongside employer-funded insurance and benefit business owners too.

“While employees reap the triple tax advantage benefits – contributions made with pretax dollars, no taxes on interest earnings, and withdrawals for qualified medical expenses are tax-free – employers can see benefits of their own,” she explains.

“Businesses do not have to pay federal payroll taxes (FICA) on pre-tax contributions as the IRS does not consider those contributions as wages,” says Contreras-Duran. “HSAs also lower insurance premiums as employees who take advantage of having an HSA with a qualifying insurance plan pay higher deductibles which lower monthly premiums for the employer.”

Unlike Flexible Spending Accounts, HSAs don’t have the same use-it-or-lose-it rules, says Contreras-Duran. HSA contributions stick around if you switch insurance carriers. And HSAs through OlyFed means it stays with you, not the company, even if you change jobs or move away.

Prescriptions, Procedures, Dental and Eye Exams…a Health Savings Account Does It All

So what exactly is covered under the HSA umbrella? “This is one of my favorite questions,” says Contreras-Duran, “because there are a variety of services that are covered as well as a few surprising ones.” Typical expenses include routine doctor visits, prescription drugs, some dental and vision care, feminine hygiene products, birth control and lactation supplies, she says. HSAs can even cover complementary care like chiropractic and acupuncture treatment.

“Some not so expected coverages,” she continues, “are home improvements for obvious medical reasons, sunscreen, and the best of all: service animals. Yes, you can pay for those invaluable furry companions who provide service as a guide, seizure alert, psychiatric aid and more. You can also use HSA funds to care for your service animal like veterinarian care and food.”

A full list of qualified items is updated annually by the IRS and the OlyFed team is happy to walk you through specifics as they relate to your needs.

Important Contribution Details & Tax Time Info  

Contreras-Duran says that for the 2024 tax year, an individual can contribute to their HSA through April 15, 2025. Individuals can contribute $4,150 while individuals with family coverage can contribute up to $8,300. If you are 55 or older you are eligible to contribute an additional $1,000 catch-up, which is perfect for individuals as they get closer to retirement and want to bump up their HSA balance.

You can open an OlyFed HSA online or stop by one of their nearby locations and chat about options, details and handy tips. For example, Contreras-Duran reminds account holders to always keep your receipts. “Every receipt you collect and pay out of pocket for can be deducted from taxable income in any tax year you choose to do so,” she explains. “That broken leg you paid for out of pocket five years ago? You can pay yourself back from your HSA tax-free as long as the account was established you when you incurred the expense.”

Visit your nearest OlyFed and start planning for a medically rainy day. The outlook may be sunny now but in the Pacific Northwest, as in life, there’s always a shower around the corner.