HSA
Cover the
small AND
Big ITems
Health Savings Account (HSA)
Set money aside to pay for qualified medical expenses in a tax deductible account – for people with a high deductible health plan (HDHP).
What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) is a tax exempt account with a financial institution in which you accumulate savings to pay for current and future medical expenses. The HSA consists of two separate parts:
- Your individual HSA account
- HDHP – A high deductible insurance policy is designed to insure for catastrophic events while the policy holder pays for smaller expenses
Advantages – River Valley Bank HSA
- No administration fees –there are no set up fees or annual administration fees
- No-fee checking account – there are no service charges and minimum balances required
- Unlimited check writing – you may have unlimited transactions
- Access account either by writing a check or using your debit card
- Interest earned on after $5 – earn a tiered rate of interest based on your balance with an average collected minimum balance of $500
- View account online – view your cancelled checks and/or transactions on-line
- Year-end reporting – receive a 1099 R that details contributions, distributions, and interest earned
Who is Eligible?
Any individual covered under a qualified high deductible health plan. Individuals cannot be above Medicare eligibility age or covered under another plan.
What Can I Use My HSA For?
Eligible Medical Expenses
(Search by first letter. Example: "C" for "Crutches")
Deductible Medical Expenses
- Abdominal supports
- Abortion
- Acupuncture
- Air conditioner (when necessary for relief from difficulty in breathing)
- Alcoholism treatment
- Ambulance
- Anesthetist
- Arch supports
- Artificial limbs
- Autoette (when used for relief of sickness/disability)
Non-deductible Medical Expenses
- Advancement payment for services to be rendered next year
- Athletic club membership
- Automobile insurance premium allocable to medical coverage
Eligible Over –the-Counter Drugs
- Allergy medications
- Antacids
- Antibiotic ointments
- Anti-diarrhea medicine
- Calamine lotion
- Cold medicine
- Cough drops and throat lozenges
- First aid creams
- Motion sickness pills
- Nicotine medications and nasal sprays
- Pain relievers
- Pedialyte
- Sinus medications and nasal sprays
- Sleep aids
- Suppositories and cream
- Wart removal medication
Ineligible Over-the-counter
- Acne treatments
- Cosmetics (including face cream and moisturizer)
- Dietary supplements
- Fiber supplements
- Herbs
- Lib balm (including Chapstick or Carmex)
- Medicated shampoos and soaps
- Suntan lotion
- Toiletries (including toothpaste)
- Vitamins (daily)
- Weight loss drugs for general well being
Health insurance may not be purchased with HSA funds, except:
- A health plan during any period of continuation coverage required under any Federal law.
- A qualified long-term care insurance plan.
- A health plan during a period in which the individual is receiving unemployment compensation under any Federal or State law.
