Can I Open an HSA Without My Employer?

There’s no question that medical expenses take a big chunk out of most people’s budgets these days. Even simple doctors visits can run into the hundreds of dollars, and comprehensive care for hospital stays can be much, much more. While insurance can be useful in offsetting the cost of healthcare expenses, private insurance doesn’t cover all medical expenses.

For example, over-the-counter medications are generally not considered a covered expense through private insurance. Likewise, dental care is often not included in a health insurance plan unless your provider offers an add-on dental option. To pay for these types of expenses, you may have to dig into your own pocket, but there is another way – a health savings account.

What is a Health Savings Account?

A health savings account (HSA) is a private savings account that allows you to place money into it tax-free. Unlike insurance benefits, these funds can be spent on a variety of healthcare expenses, including over-the-counter medications and dental care.

Most people access an HSA through an employer-sponsored insurance plan. In many cases, access to an HSA will be offered alongside a group health insurance policy. This allows all of your benefits to be administrated under one provider, making it easier and more convenient to keep up with everything.

Opening a Private HSA

Despite most HSA accounts being available through employers, you can opt for private health saving account administration. This can be done through investment firms as well as banks, and some people with individual health insurance plans that are not employer-sponsored may also be able to access private health saving account administration through their insurer.

These plans typically operate on the same principles of allowing you to save tax-free funds to be used for healthcare expenses. Because each account administrator is different, you might consider shopping around to find the provider that’s right for your unique needs. Additionally, you will want to check with local healthcare providers to ensure that they accept HSA funds for their products and services.

Read a similar article about HSA account providers here at this page.