Get the Most out of a Health Savings Account (HSA)

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Tom Rogala of shares best practices to fund your Health Savings Account.

Tom Rogala estimates 10% of his high-deductible enrollees are not funding their Health Savings Accounts. To help these clients and others start funding their HSA, he has this advice.

1) The best way to fund a HSA account is to put the difference between the old insurance premium and the new high deductible premium into the HSA from day one. However, if cash is needed for other essentials, try to put at least 50% of what would have been paid in additional premiums each month into the Health Savings Account. If an enrollee starts the first month that the new, lower-premium, takes effect the difference in monthly cash flow won’t seem as difficult.

If enrollees have already started spending the money they saved in premiums when they signed up for a Health Savings Account, they can still achieve this goal. They should sit down and make a plan. They should decide what they would like to be putting into the HSA account 1 year from today. Save 25% of the goal the first four months, 50% the next four months, 75% the next four months, and finally 100% after 12 months. Enrollees should keep the schedule posted wherever they do their banking so they are motivate to continue saving.

2) Enrollees should call their bank and ask them to make an automatic transfer to their Health Savings Account with the amount they specified above each month.

3) Enrollees should remember that saving in a HSA is an investment in themselves. They can use the tax-free money in their health savings account for qualified medical expenses until age 65. After age 65 they can use the HSA funds any way they choose. is the website for Custom Benefit Solutions, owned by Tom Rogala. Tom is an independent health insurance broker who provides Health Savings Accounts to individuals, families, and groups. He is a graduate of Alma college with over a decade of experience in the health care industry. His specialty is Health Savings Accounts.

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