While Health Savings Accounts (HSA’s) are not the ideal solution for every individual or family, they are often a simple, tax-free way to save money on healthcare. Just like traditional healthcare plans, though, it’s important to choose an HSA administrator that caters to your specific insurance needs.
How to Choose an HSA Administrator
Before deciding on an HSA administrator, remember the following tips.
- Do your research. Gather information about several different providers, either online or through the mail. Compare features and benefits, ask about account-related fees and find out how you’ll access your money. Some HSA administrators reimburse you via check for medical expenses, while others provide a designated debit card to be used for HSA-eligible purchases, co-pays and insurance premiums.
- Find out what your investment return will be. Some HSA administrators allow you to invest your healthcare deposits in a mix of mutual funds, bonds and stocks—while others only offer an up-front, fixed-rate return. Choose your favorite based on the current market climate and the rate of risk you’re willing to accept. Remember, though, that not every HSA investment is insured by the FDIC.
- Ask around. If you have a friend or family member who is happy with their HSA, find out which administrator they use. If you are satisfied with your other health, auto or home insurance provider, inquire about whether they offer HSA coverage, as well. Adding the HSA deposits on to your current premiums simplifies the payment process—and you may get a discount for going through your existing insurance provider.
While it’s often easier to streamline your insurance policies by using the same company, you’re under no obligation to use your current insurance provider for your health savings account—especially if you’re dissatisfied with their fees or level of service. Choose an HSA administrator that is affordable—and offers the benefits, affordable charges and withdrawal method that best fits your budget, lifestyle and healthcare needs.
