Debunking HSA Myths

I don’t use an HSA because they are too complicated.

An HSA is meant to be a helpful tool for managing healthcare expenses, yet the process of using HSA funds can seem overwhelming. Historically, it has been a manual process requiring account holders to keep receipts, track eligible expenses, and file for reimbursements to cover out-of-pocket healthcare costs.

InComm Benefits simplifies the process with cutting-edge technology that account holders can use in three simple steps:

1. Contribute funds – We work with your employer to set up automatic contributions from payroll directly to your HSA.
2. Connect an “everyday” account – InComm Benefits provides a unified debit card that can connect to the HSA account and an everyday checking account.
3. Use your InComm Benefits unified debit card – When your accounts are connected to the unified debit card, our platform automatically detects and pays for eligible healthcare expenses from your HSA, while funds for non-eligible purchases are used from your everyday account.

I’m not sure if an HSA will help cover higher out-of-pocket costs that come with having a high-deductible healthcare insurance plan.

Selecting a health plan can be a stressful process, especially when considering a high-deductible plan. However, there are a few key benefits that HSAs can offer to complement a high-deductible health plan:

1. Saving HSA funds helps pay deductibles – Payroll contributions to your HSA are tax free, and you can use HSA funds to pay your health plan deductibles.
2. Benefitting from lower premiums – High-deductible health plans come with lower premiums compared to low-deductible health plans, which means you may have extra cash you can invest tax-free in your HSA.*
3. Earning interest on HSA funds* – Contributing to your HSA gives you an opportunity to grow your balance with investments while having funds ready for eligible healthcare costs in the future.

I do not understand the tax benefits of an HSA.

Taxes can be a complicated subject, but that is not the case when it comes to HSAs. There are three key benefits, which you can think of as an HSA’s triple tax advantage:

• Tax-Free HSA Contributions – Contributing funds to your HSA reduces the size of your taxable income at the end of the year.
• Tax-Free HSA Withdrawals – You can make tax-free withdrawals from your HSA to cover eligible healthcare-related expenses.
• Tax-Free HSA Interest* – Funds in your HSA could earn tax-free interest over time through investments

I do not need an HSA because I’m a healthy person.

Even if you are a healthy person, you likely already spend money on healthcare. Using an HSA can help you better budget for those expenses from buying vitamins at the grocery store to getting an annual dental cleaning. Plus, your HSA can be used for more than eligible healthcare expenses. You can also contribute funds for investment and growth opportunities as your HSA funds earn potential interest over time through investments.

I am afraid to lose my HSA funds at the end of the year or if I change employers.

Your HSA funds are yours, and neither a new year nor a new employer will cause you to lose your funds.

HSA accounts are too limited because I can only use them for healthcare services.

There are tens of thousands of products and services that are eligible for purchase using HSA funds, and they are not just limited to doctor visits. Keeping track of these items does not have to be a manual process requiring you to look at and decipher your store receipts, all thanks to our unique solution. With a unified debit card that connects to your HSA and a checking account, you can pull funds from your HSA for eligible expenses or your everyday account for non-eligible expenses with one swipe of the card.