National Health Savings Account Day is celebrated on December 8 every year. It is a special day designed to bring the public and the healthcare benefits industry together to discuss the power of health savings accounts (H.S.A.s) and their role in combating healthcare issues in America today. Did you know that opening a healthcare savings account can help you save money? Yes, opening an H.S.A. can reduce your taxable income, and even the interest earned on contributions is tax-free. So, what exactly is National Health Savings Account Day and why is it important for Americans?
History of National Health Savings Account Day
A health savings account, or H.S.A., is a tax-advantaged account created for individuals covered under high-deductible health plans with the aim of saving for qualified medical expenses. The contributions to the H.S.A. are limited to a maximum amount each year. These contributions can be used to pay for qualified medical expenses, such as medical, dental, vision care, and prescription drugs. H.S.A.s help people save for medical expenses that are not reimbursed by high-deductible plans. In 2022, the maximum H.S.A. contribution for an individual is $3,650 and $7,300 for a family.
National Health Savings Account Day celebrates the creation of the health savings account as well as the bill that made it possible. December 8 was chosen as the National Health Savings Account Day because it is when the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was signed into law by the 108th U.S. Congress. This day was founded by Ameriflex in 2019. Ameriflex is America’s leading provider of employee benefits, including Flexible Spending Accounts (F.S.A.).
With healthcare costs and related expenses increasing each day, Americans find it crucial to open a health savings account to secure their future. H.S.A.s serve as a cost-effective, adaptable, and proactive reserve for wellness upkeep and unplanned expenses.
National Health Savings Account Day timeline
The Medicare Prescription Drug, Improvement, and Modernization Act is signed into law.
Out-of-pocket healthcare spending increases by 53% among Americans.
Ameriflex establishes National Health Savings Account Day.
More and more Americans are beginning to understand the significance of H.S.A.s.
National Health Savings Account Day FAQs
Can you cash in a health savings account?
Yes, you can withdraw funds from your health savings account at any time. But if you use your H.S.A. funds for any reason other than to pay for a qualified medical expense, it will be taxed as an ordinary income.
Can I buy groceries with my H.S.A. card?
There may be limitations on where and how much you can spend using your H.S.A. card. For instance, if you try to use your H.S.A. card in a grocery or convenience store, it might not function. Expenses should be submitted for reimbursement as well.
Can I cash out my H.S.A. when I leave my job?
Yes, an H.S.A. is yours to keep, even if you resign, are terminated, retire from, or change your job.
How to Observe National Health Savings Account Day
Let the world know
By learning more about H.S.A.s and raising awareness about National Health Savings Account Day and its advantages, you can celebrate it in the best possible way. You can share with other people the importance of having an H.S.A. to save for qualified medical expenses.
Open an H.S.A. account
Opening a health savings account or making contributions to an existing one is one of the most effective ways to celebrate National Health Savings Account Day. Having an H.S.A. is a lifetime investment.
Share your story
Use the hashtag #NationalHSADay to commemorate National Health Savings Account Day on social media. You can also mention the advantages your H.S.A. account has provided.
5 Inspiring Facts About An H.S.A.
Your balance continues to grow year after year.
It can be invested
Mutual funds may be used to invest in H.S.A. funding.
It can pay your past
An H.S.A. can pay for the prior year’s medical expenses.
It can be your emergency fund
An H.S.A. makes for a good emergency fund when an unforeseen situation arises.
It can survive change
A change in health insurance policies won't affect an H.S.A.
Why National Health Savings Account Day is Important
An H.S.A. offers triple tax benefits
An H.S.A. combines the benefits of both a standard and Roth retirement account, and contributions are not taxed. H.S.A. funds increase tax-free.
It is actually beneficial
H.S.A.s can pay for eligible expenses, such as dental and vision-related charges, in addition to medical costs. In fact, in accordance with IRS Publication 502, these costs may be repaid from an H.S.A.
It’s for all of us
The creation of H.S.A.s as well as the legislation that made them possible is commemorated on National Health Savings Account Day. Thanks to H.S.A.s, millions of Americans each year reduce their healthcare costs.
National Health Savings Account Day dates