You’d give anything to make sure your family has the medical care that it needs, and these days that typically means forking over a huge portion of your paycheck. In fact, the average family of four with employer-based insurance shelled out nearly $30,000 on out-of-pocket healthcare costs last year! That’s an eye-popping figure, and one that’s been rising for years. While you don’t want to skimp on necessary care, there are ways to cut back your medical bills and to prepare for those years when costs go even higher—now or even decades into the future. One such method is a health savings account (HSA), a tax-advantaged account available to anyone who’s enrolled in a qualified plan. Let’s look at reasons why an HSA might make sense for your family:

The savings is even better for families. Employees often opt for the more expensive health plan because they think it provides better coverage, but that’s not always true. Before selecting a plan, you’ll want to determine the maximum out-of-pocket cost, along with potential employer contributions and tax savings. Many open enrollment web sites provide tools to help with the calculation. Employer contributions for family coverage are higher (in both dollars and as a percentage of premiums) on HSA-eligible plans than they are for individual plans, according to Mercer. That makes the potential savings of switching to a plan with an HSA even higher for families, especially if you’re able to build up your HSA account to cover the cost of those deductibles.

You’ll have added flexibility when spending. You can spend your HSA funds to pay for qualified procedures that may not be otherwise covered by traditional insurance plans. For example, you can use money from your HSA account to pay for procedures by out-of-network doctors, or for some elective procedures like acupuncture or Lasik surgery. Often times you can spend your HSA funds with a debit card available from your provider, and most HSAs come packaged with tools like a mobile app that you can use to save, scan and send in your receipts for reimbursement. If you take advantage of these tools they can help you budget, plan, analyze and manage your healthcare-related accounts and expenses and you’ll be more inclined to make better decisions as you move forward with your HSA plan.

There’s no pressure to spend down your HSA account in a given year. Money in an HSA rolls over year-to-year, and you even take it with you if you leave your employer. Some of the biggest benefits from HSAs come from not spending the money and allowing it to compound and continue growing over time.

It can double as an extra retirement account. After age 65, your HSA account essentially turns into another IRA account, since you can withdraw money tax-free for anything you want (though you’ll owe income taxes on it), even if it’s not medical related. That makes them a great option for families who have already maxed out traditional retirement accounts such as a 401(k). That said, it may make sense for you to keep your HSA money as a dedicated fund for long-term care or medical expenses, even in retirement. The average couple will need $285,000 to cover their out-of-pocket medical costs in retirement, according to a recent study by Fidelity.


Flyte HCM is proud to deliver the only true multi-account solution for HSAs with a single platform, a debit card, and mobile app designed to make the HSA experience seamless and easy. For employers, we provide a comprehensive, one-stop, compliant HSA administration solution with in-depth reporting, white-label custodian, and a single administrator.

Curious and ready to learn more about how we can help your business? For more information, give us a call today at 952.746.0000 or email: