Person putting savings into piggy bank.

Is an HSA Worth It?



Health Savings Accounts (HSAs) are a popular choice for those looking to manage healthcare expenses and take advantage of tax benefits. However, many still aren’t aware of the benefits that such an account could have for them. If you’re in a position to make improvements to your healthcare and financial readiness, learn all there is to know about an HSA, the benefits they offer, and who might find them most useful.

What Are Health Savings Accounts (HSAs)?

A Health Savings Account (HSA) is a savings tool that offers tax benefits to help cover medical expenses. It's designed to ease the financial burden of healthcare by allowing you to pay for services like doctor visits and prescriptions with pre-tax money. HSAs are typically paired with high-deductible health plans (HDHPs), which have lower premiums but higher deductibles.


Between an HSA and an HDHP, you can lower your monthly insurance costs while providing a way to save for out-of-pocket expenses. Contributions to an HSA can come from you, your employer, or both, up to an annual limit set by the IRS. Any unused funds roll over yearly and you can even invest them for potential growth over time.

Eligibility Requirements for HSAs

You must be enrolled in a high-deductible health plan (HDHP) to qualify for a Health Savings Account. For 2024, the IRS set the minimum deductible at $1,600 for individuals and $3,200 for families, with out-of-pocket expenses capped at $8,050 for individuals and $16,100 for families. Additionally, you cannot be claimed as a dependent on someone else's tax return or be enrolled in Medicare. These rules ensure that HSAs benefit those who can maximize their tax savings and financial planning.

Benefits of Having an HSA

HSAs offer significant financial advantages, particularly for reducing healthcare costs. Contributions are tax-deductible, which lowers your taxable income. The account's earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free, creating a triple tax benefit. Beyond immediate expenses, HSAs allow funds to roll over annually, building a reserve for future medical needs. Many accounts offer investment options similar to retirement plans, enhancing long-term savings potential.

What Is a Health Savings Account Used For?

HSAs cover many medical expenses, including doctor visits, prescriptions, dental and vision care, and some over-the-counter medications. This flexibility lets you address current and future healthcare costs, adapting to your needs over time.

Who Should Consider an HSA?

HSAs are ideal for those with high-deductible health plans who want to save on taxes and healthcare costs. They're also beneficial for individuals focused on long-term savings and investment in their health. So, if you frequently exceed your deductible or prefer not to invest, other options might be more suitable.

Commonwealth Credit Union's Health Savings Accounts

Commonwealth Credit Union offers HSAs that meet many different healthcare and financial needs. These accounts feature competitive interest rates and no monthly fees, simplifying the process of growing your savings while safeguarding your health. With online management tools, tracking contributions and expenses is straightforward, too. Commonwealth Credit Union also provides personalized customer service and educational resources to help you maximize your HSA benefits and cut down on confusion.

Invest in Your Health With an HSA Today

Health savings accounts are a strategic tool for managing healthcare expenses while enjoying tax benefits. They are especially advantageous for those with high-deductible plans looking for long-term savings and investment opportunities, but many people with different health needs can potentially make gains.


Commonwealth Credit Union offers excellent HSA options tailored to various needs, making them a strong choice for enhancing financial and healthcare readiness. For more details, contact us and explore our HSA offerings to start saving smarter today.