When health savings accounts (HSAs) came into existence more than 20 years ago, only people with a high deductible health plan were qualified to contribute to one. But beginning in January and moving forward, purchasers of a “bronze” or “catastrophic coverage” policy through the Affordable Care Act (ACA) exchange or equivalent are now deemed HSA qualified.
This expands the potential audience of HSAs to millions of Americans.
Kevin Robertson, the chief growth officer at HSA Bank, said medical savings accounts are a simple way to save and pay for health care expenditures on a tax-free basis.
“HSAs are designed to pay for the health care expenditures that health insurance does not,” he said. “So for example, that could include deductibles, co-pays, out-of-pocket expenditures such as over-the-counter meds, dental, vision.”
It doesn’t have to be just for your expenses, either. HSA funds can also be used to pay for the expenses of a spouse or dependents. It really could be for anyone, for example, in your family, Robertson said.
The average person spends about $3,000 a year on health care expenditures, he said.
“You can also invest those dollars,” he said. “That way you’re not solely getting a bank account interest rate.”
In 2025, 1.5 million Georgians enrolled in Affordable Care Act plans, including 368,000 on “Bronze” plans.
