Health Savings Accounts

Health Savings Accounts (HSAs) were developed to provide a mechanism for individuals to save for health costs either current or future, and receive some tax savings for doing so. HSAs are only for individuals participating in a High Deductible Health Plan (HDHP). An HDHP is a certified health plan that meets the guidelines set by the government for the deductible and out of pocket amounts. To be eligible an individual must be in a qualified HDHP, and not have other health insurance.

The HSA allows the individual or employer to make tax deductible contributions that can accumulate over time, until the person reaches retirement age. These dollars can be spent on qualified medical expenses throughout the years. The Union Federal HSA pays a competitive tiered interest rate on the account balance, and offers check writing privileges and a checking card (debit card) to ease the payment process for qualified expenses. You can either write a check to pay for medical expenses or use your checking card, and the amount will come directly from your Health Savings Account.

Please contact your nearest Union Federal office for more information on Health Savings Accounts.