Want to use HSAs with healthsharing ministries? This may soon become a reality.
What are HSAs?
A Health Savings Account (HSA) is a type of account where individuals and families can put tax-free money to save up for future medical expenses. HSAs have to be paired with a high-deductible health insurance plan, though, and the money is only tax-free if used for legitimate medical expenses. As of February 2023, the requirements for annual deductibles to be eligible for HSA for individuals and families are $1,400 and $2,800, respectively.
The most attractive attributes for Health Savings Accounts are:
- Tax Deductible (100% deductible)
- Tax-Free (Withdrawals are never taxed)
- Tax-Deferred (Interest earnings are deferred)
HSAs with health shares
As the law stands now, members of health shares are not allowed to use Health Savings Accounts, though this may change. Currently, there is legislation being debated on Capitol Hill that could allow for health share members start their own Health Savings Account
What can members do?
If you’re a member of a health share and support this new legislation to allow for Health Savings Accounts, the best thing you can do now is contact your Senator. You can simply let them know that you support this legislation and encourage them to vote in favor of it.
The idea of using HSAs with health share plans holds promise for those of us seeking tax advantages and more control over our healthcare expenses. Current regulations don’t allow HSA usage for health share members, but new legislation may change that soon enough!
