Personal Banking/Health Savings
Is the cost of healthcare making you sick?
We are all concerned about the cost of health care. The Peoples Bank Health Savings Account (HSA) is one way we’re trying to help you with your Financial Wellness. Our HSA offers you a special opportunity to keep your medical expenses under control.
- A checking account designed to support a high-deductible health plan*.
- $50 minimum to open
- $3 monthly service charge
- Free Debit Card
- Unlimited transactions
- Earns interest
- Online banking
- $25 set-up fee
Here are some questions and answers about the Peoples Bank HSA.
WHAT IS AN HSA?
The Peoples HSA (Health Savings Account) is a tax-favored consumer savings account for individuals and families covered by high deductible health insurance plans. Tax-free withdrawals may be taken from your Peoples HSA to pay for qualified medical, dental or vision care expenses. Contributions may be made on a pre-tax basis. Withdrawals can be used to pay for qualified medical expenses with tax-free dollars. This special account works with your health insurance policy.
WHERE DO CONTRIBUTIONS GO?
Contributions are made to your Health Savings Account. Amounts not used remain in the account earning interest to help supplement your retirement.
WHAT IF I HAVE A LARGE MEDICAL BILL?
Under a high deductible health plan, the consumer is often responsible for all medical expenses until the policy deductible is met. Funds in the HSA account may be used to help meet your deductible and pay the amounts due.
HOW DO I SAVE MONEY ON MY MEDICAL BILLS?
Your Peoples Health Savings Account, combined with a high deductible health plan, may replace a much higher cost, more restrictive, traditional health insurance plan.
HOW DOES IT WORK?
Take the premiums you currently spend on traditional individual or group plan and split that up into two sections. One part will pay the premium for the high deductible health insurance plan and the other part goes into your Peoples Health Savings Account.
WHAT ELSE CAN THE PEOPLES HSA BE USED FOR?
Regardless of your health plan coverage, tax-free dollars can be used for qualified medical expenses like dental and vision care. Funds may also be used to pay for anything the consumer wishes, but prior to age 65, the tax penalty will apply similar to IRA regulations. After age 65, funds can be used to supplement retirement. Please contact your CPA or tax advisor for specific advice on how HSAs could affect your personal tax situation.
*For further information please refer to IRS Publication 502 for information on Eligible HSA Expenses and IRS Publication 969 for General HSA Information, or consult your tax advisor.