by admin | Jan 14, 2025 | Custom Content, Employee Benefits
New to a Health Savings Account (HSA)? Here’s What You Need to Know
As the name suggests, a Health Savings Account(HSA) is a special savings account used to pay for healthcare-related expenses. An HSA has potential financial benefits for now and later. Not only can you save pre-tax dollars in this account to pay for qualified medical expenses (QMEs), but HSAs can also provide valuable retirement benefits.
If you’re new to HSAs, here are some tips to help you get started:
- Understand the Basics:
- Triple Tax Advantage: HSAs offer a unique triple tax advantage: contributions are tax-deductible, earnings grow tax-deferred, and withdrawals for qualified medical expenses are tax-free.
- Eligibility: To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP). A HDHP is an insurance plan with higher deductibles and out-of-pocket costs. However, HDHPs carry lower premiums than traditional insurance plans, and in most cases, the cost savings in premiums alone are significant.
- Contribution Limits: There are annual contribution limits set by the IRS. The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
2. Maximize Your Contributions:
- Contribute Regularly: Set up automatic contributions to your HSA to make saving consistent and effortless.
- Consider a Catch-Up Contribution: If you’re 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
3. Use Your HSA Strategically:
- Pay for Qualified Medical Expenses: Use your HSA funds to pay for eligible medical expenses, such as doctor visits, prescriptions, and dental care.
- Invest for the Future: Consider investing your HSA funds for long-term growth. This can be a great way to save for other future healthcare needs or even retirement. Once you reach age 65, you can withdraw money from your HSA for any reason without penalty – only ordinary income tax due.
- Unused HSA Funds: HSA funds can be rolled over to the next year. However, if you withdraw funds for non-medical expenses, you’ll pay income tax plus a 20% penalty.
Money that goes in and out of an HSA is tax free as long as payments and reimbursements from the account are used only for Qualified Medical Expenses (QMEs). QMEs are healthcare-related items or services designated by the IRS that you can write off when you do your taxes. There are thousands of medical procedures, services and types of equipment that are considered QMEs, and the IRS frequently updates the list.
It is important to know that your HSA account is yours – not your employers. Unlike healthcare Flexible Spending Accounts (FSAs), which your employer technically owns, your HSA belongs to you. So, when you leave a job, you keep all of the money you’ve saved up in your HSA and can transfer into a new HSA or employer-sponsored HSA at your next job.
The Bottom Line
HSAs are often referred to as triple tax-advantaged and are one of the best savings and investment tools available under the U.S. tax code. As a person ages, medical expenses tend to increase, particularly when reaching retirement age and beyond. Therefore, starting an HSA early and allowing it to accumulate over a long period can contribute greatly to securing your financial future. By understanding the basics of HSAs and following these tips, you can make the most of this valuable financial tool.
by admin | Dec 2, 2024 | Custom Content
For some, the lyrics “with those holiday greetings and gay happy meetings when friends come to call, it’s the hap-happiest season of all” stirs happy memories of Christmas caroling. However, for others, the holidays can be one of the most stressful and isolating times of the year. The season often brings a whirlwind of demands—shopping, baking and entertaining to name a few. For those managing mental health conditions like depression or anxiety, these challenges can feel even more overwhelming.
Holiday depression can sometimes be dismissed as just the “winter blues.” During this time, many people focus more on their physical health than their mental well-being, often prioritizing weight loss over emotional care. This lack of awareness can allow holiday depression to deepen into major depression.
Here are nine tips to help manage holiday depression:
- Be Realistic – Holidays and traditions evolve as people do. Kids grow up, people relocate, and new relationships form. Embrace these changes, cherish new traditions, and appreciate memories from past holidays while being present in the current moment.
- Schedule Downtime – Spend 15-20 minutes daily for quiet relaxation, such as taking a bath, listening to music, or reading. And remember, it’s okay to say no—you don’t need to attend every party or event.
- Stay Connected – Avoid isolation. Seek social interactions, even if you can’t be home for the holidays. Invite a friend over for a chat or volunteer for a cause that interests you.
- Limit Alcohol – Alcohol is a depressant and can intensify negative emotions. Try to drink in moderation.
- Exercise Regularly – Although exercising can feel challenging when stressed, even a short walk can be beneficial. Exercise has been shown to help reduce depression symptoms.
- Focus on the Positives – Each day is a gift. Practicing gratitude has a powerful effect on mental well-being by increasing self-esteem, enhancing positive emotions, and promoting optimism.
- Manage Expectations – Set realistic goals and pace yourself. Make a list to prioritize what’s most important, helping to keep holiday activities manageable.
- Communicate with Loved Ones – Don’t hide your holiday depression from friends and family. Sharing your feelings can prevent your mental health from worsening. Be honest about what you’re experiencing, but make it clear you don’t expect them to “fix” it.
- Seek Professional Help if Needed – If you feel persistently sad, anxious, unable to sleep, or find routine tasks overwhelming despite your efforts, reach out to a doctor or mental health professional.
Don’t feel pressured to embody the “joy of the season.” With planning, self-care, and meaningful connections, you can manage holiday depression and find moments to enjoy. Be kind to yourself, keep expectations realistic, and stick to your healthy habits. By actively caring for your mental health, you can make the most of the holiday season.
If you are experiencing these symptoms over a period of several weeks, you may be depressed. Talking with a mental health professional or taking a mental health screening test can help you understand how well you are coping with recent events. Seek help.
by admin | Nov 26, 2024 | Custom Content, Health Care Costs
All too often, illness or injury appears out of the blue: You wake up in the middle of the night with intense abdominal pain. Or your baby spikes a high fever on the weekend. These situations are stressful and it’s hard to think when you’re under stress. But you need to decide where to go to get medical care for yourself or a loved one. Understanding the levels of acute medical care before you need it can help you focus and get the appropriate help quickly.
Urgent care centers and emergency rooms are both great options for times when you are unable to see your primary care physician (PCP). The reasons for choosing these facilities can be because the injury or sickness has occurred outside normal office hours for your doctor or that you are out of town when an emergency hits. As you know, the first choice for non-life or limb-threatening conditions should be your regular doctor—they will have your medical history on file and your medication list at the ready. When this is not an option, you will need to make the choice on what level of care you need.
Urgent Care Centers
Urgent care centers fill the gap between when you are sick or minorly injured but cannot see your PCP and when you can’t wait for an appointment. Most urgent care locations are staffed by doctors or physician’s assistants. These centers can get you in and out quickly and some even take appointments. Since you will not see your PCP at these clinics, it’s always best to bring a copy of all the medications and dosages of meds you take. If you have a special condition, like epilepsy, make sure you disclose that to the urgent care provider you see. Most have access to x-ray machines and basic diagnostic tests. The typical range of costs for care at these centers is between $175-$200.
Here are some conditions that typically can be seen at urgent care centers:
- Fevers, flu or cold symptoms
- Ear infections
- Bronchitis
- Cuts and bleeding that may require stitches
- Urinary tract infections
- Vomiting or diarrhea
- Minor back pain
Emergency Room Care
Hospital emergency rooms provide care for life and limb-threatening situations ranging from heart attack and stroke to car accident injuries. Staffed by physicians, nurses, and specialists, emergency rooms have access to highly knowledgeable and diverse medical teams. In emergency rooms, care is given to the most serious injury/illness first—not on a first-come, first-served basis. Because of this, wait times in emergency rooms are widely varied and may be into a several hours-long wait. Again, it is wise to bring a list of any medications, both prescribed and over-the-counter, with you when seeking care since the ER will not have this information from your PCP. The average cost of an emergency room visit costs $2,700 according to UnitedHealthcare.
Symptoms that are best evaluated in an emergency room include:
- Chest pain or difficulty breathing
- Weakness/numbness on one side
- Slurred speech
- Fainting/change in mental state
- Serious burns
- Head injury
- Concussion/confusion
- Broken bones and dislocated joints
- Seizures
- Severe cuts that may require stitches
- Vaginal bleeding with pregnancy
When deciding between urgent care and the emergency room, start by assessing your symptoms. Ask yourself, “Is this condition life-threatening or likely to cause permanent damage?” If the answer is “yes,” head to the nearest ER. If it’s “no,” take your non-life-threatening injury to an urgent care center for stitches or treatment. Choosing the right care option saves you both time and money!
