Daniel Stewart

Surprising Things You Can Save On With an HSA

A health savings account (HSA) offers a tax-advantaged way to save money that can be spent on a variety of healthcare needs. Doctor visits, dental work and even some over-the-counter medical products can all be purchased with HSA funds, and some retailers and healthcare professionals even offer a discount for using HSA funds.

In many cases, HSAs are provided through and administered by employers. An employer might also contribute an amount each paycheck toward an employee's HSA. These contributions may be based on a percentage of the employee's contribution, but they may also be a flat rate that is contributed to the accounts of all employees.

HSA Funds Are Like Cash

When you use your HSA funds to pay for in-person medical services, providers often view these payments the same way they would with cash payments. Because paying with cash guarantees the provider receives their money, and because they receive the funds at the time of fee payment instead of waiting for insurance claims to process, they may offer a discount for using cash. You can then get an HSA discount by using your health savings because a provider may treat it like a cash transaction.

Saving on Medicines

Your HSA may also be tied to your health insurance provider. Insurance providers sometimes negotiate deals with drug manufacturers to obtain special pricing for plan recipients. This means that you may be able to receive an HSA discount on certain medications, including prescription medications and over-the-counter products, just by using your HSA funds.

Contact Your Provider

The above scenarios may be common, but they are not guaranteed. This is why you're encouraged to work with your HSA administrator to learn more about the specific savings and discounts you're entitled to.

You should also discuss your payment plans with your doctor or any healthcare provider you receive service from to ensure that they are able to accept HSA payments. This can help you to avoid surprises when time is of the essence, and it can help you to know your options to make better decisions regarding your health.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at HSA strategy blog.