Health Savings Accounts (HSAs) from First Federal Community Bank offer a way to offset high deductible insurance costs. HSAs are tax-exempt accounts opened by an individual or employer to pay eligible health care expenses including insurance policy deductibles, co-payments and other out-of-pocket medical expenses. An HSA must be established with a high deductible health plan (HDHP) so that the Health Savings Account can be used to pay routine expenses. There are annual maximum contributions that can be made and deducted for tax purposes.

• Health Savings Accounts are funded by tax deductible contributions owned by an individual, used to pay for current and future medical expenses, including deductibles, co-payments and other forms of cost-sharing.
• HSAs are available to individuals covered by HSA-eligible health plans, like high-deductible plans and other consumer-directed health plans.
• HSAs are portable, meaning the individual has ownership of the funds in the HSA. If the individual changes jobs or becomes unemployed, the HSA remains as an active account for the individual and may be used by the new employer if a high deductible health plan is in place.
• Individuals with HSAs have flexibility to use their HSA funds to pay for current medical expenses or save the money in the interest-bearing account to pay for future medical expenses.

Please call or visit one of our offices to learn more about HSAs.