Oral & Vision Health Blog

Your Health Savings Account: Why You Should Use It

Do you want to know a secret about your health insurance? It may come with a secret weapon you did not even realize you had. We are talking about an HSA (Health Savings Account).


Health Savings Accounts (HSAs) stand out as a unique and often overlooked resource, distinct from other healthcare accounts like the Flexible Spending Account (FSA) and the Health Reimbursement Arrangement (HRA). Unlike these accounts, HSAs offer unparalleled tax-free savings for qualified medical expenses, making them a potent tool for managing healthcare expenses. 

Contributing to an HSA account can lead to significant financial gains. As an individual, you can contribute up to $4,150 per year, and if you have family insurance, that limit increases to $ 8,300. Additionally, individuals aged 55 and older can contribute an extra $1,000 as a 'catch-up' contribution, potentially boosting their savings even further.

Think of HSA accounts as an investment in your health now and your future health and wellness. The funds you contribute roll over each year, and they can also be used to save for retirement and invest in mutual funds. This long-term perspective can inspire optimism about your financial health, making HSAs an intelligent choice for those looking to secure their financial future and ensure a comfortable retirement.

We will delve into why HSAs should be a part of everyone's financial planning and how to make the most of them. Let's explore the compelling reasons people use their HSAs.


Key Takeaways:

  • Health Savings Accounts (HSAs) offer tax-free savings for qualified medical expenses, making them an excellent tool for managing healthcare expenses.
  • HSAs can also be a long-term savings tool. The money saved in an HSA can be invested and grow over time.
  • HSAs can be used to pay for a wide range of qualified medical expenses such as deductibles, copayments, prescriptions, and healthcare expenses not covered by insurance.
  • Qualifying medical expenses may include medically necessary dental care, procedures to maintain oral health, and vision and eye care.
  • One powerful use for your HSA funds is for retirement savings, and after the age of 65, individuals can withdraw HSA funds without penalty.


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Who gets an HSA account?

If you are enrolled in a high-deductible health insurance plan, you automatically receive access to an HSA account. To qualify, your health plan must have an annual deductible of at least $1,500 for individuals and $3,000 for families. The out-of-pocket maximum must be $7,500 for self-only and $15,000 for family coverage.

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What are the benefits of having an HSA?

  • Tax Benefits: 
    The contributions to HSAs are tax-deductible, and the interest and earnings that the account generates are tax-free. Withdrawals for qualified medical expenses are also tax-free. This unique advantage empowers you to save on healthcare expenses while reducing tax liability.
  • Budgeting Tool:
    HSAs can be a great budgeting tool for healthcare expenses. It allows you to save money for planned procedures you have coming up. Plus, you can save over time and use it to pay for healthcare expenses when they arise.
  • Long-Term Savings: 
    HSAs can also be a long-term savings tool, offering flexibility in managing healthcare expenses. The money saved in an HSA can be invested and grow over time, benefiting young, healthy individuals without many healthcare expenses and those who want to save for the future. This adaptability ensures that your financial planning remains secure and effective, regardless of your health situation.

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Qualified Medical Expenses – What are they? 

HSAs can be used to pay for a wide range of qualified medical expenses such as deductibles, copayments, prescriptions, and other healthcare expenses not covered by insurance. For instance, if you need to see a specialist for a specific medical condition, the cost of the visit and any necessary tests or treatments can be paid for using your HSA account. However, not all healthcare expenses are qualified medical expenses, so checking the IRS guidelines before using your HSA funds is crucial.

Dental Care.

Qualifying medical expenses may include medically necessary dental care and procedures to maintain oral health.

You can use your HSA account to help pay for various dental services and orthodontic procedures. These include crowns, braces, and alternatives like Invisalign, veneers, dentures, and implants. It is important to note that dental expenses, including toothbrushes, teeth whitening, floss, and mouthwash, are not considered medically necessary.

Vision Care

Your HSA account can also pay for vision and eye care. To be HSA eligible, the expense must be used to correct a vision problem or treat a specific condition. Prescription contact lenses and eyeglasses are approved.

In addition, you can use your HSA account for bifocals, contact cleaning solutions, corrective swim goggles, eye drops, eye exams, eyeglass repairs, and prescription safety glasses. 

If you are visually impaired, you can use your HSA funds to pay for a seeing-eye dog and their associated costs. HSA accounts can also cover travel expenses for procedures for treating an eye condition. They include a bus or train ticket, gasoline, parking, and ride-share or taxi services.

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Retirement Savings

Every generation faces the unique pressure to save money in an ever-changing healthcare and retirement landscape. Having a solution to fall back on in retirement after decades spent building a career would be reassuring. That is where an HSA comes in.

One powerful use for your HSA funds is for retirement savings. You can accumulate your HSA funds over time and use them as retirement savings. 

After the age of 65, individuals can withdraw HSA funds without penalty. However, withdrawals must be for qualified medical expenses, or you will be subject to income tax. 

Timing is important. That is why you should monitor and maximize your HSA contributions. This approach can significantly impact your financial future as you approach retirement.

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Investing your HSA funds

Many HSA accounts offer the option to invest in the market. This can be a fantastic way to grow savings over time and diversify your funds.

One investment option is mutual funds, which are professionally managed investment pools that allow you to diversify your holdings. There are also exchange-traded funds (ETFs), which involve trading your money on stock exchanges. In addition, you can invest directly in individual company stocks or bonds. Some HSA accounts also offer money market funds or stable value funds.

It is important to remember that all investments carry a level of risk, and your funds can fluctuate in value. You should check with your HSA administrator to see what investment options are available.


Health Savings Accounts (HSAs) are powerful tools for helping you save on healthcare expenses while reducing your tax liability. Understanding the benefits of HSAs and how to use them effectively is essential. By taking advantage of HSAs, you can improve your financial well-being, better manage your healthcare expenses, and invest in your future. Happy saving!

Dental savings plan

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