August 2011

In this issue:

•     Save money and pay less in taxes
•     Take charge of your health care spending
•     Your HSA: Take it with you

  Save money and pay less in taxes

Every dollar you put into your health savings account (HSA) reduces your federal taxable income and, in most states, your state taxable income. That can translate into significant savings on your health and medical purchases.

Here’s an example of what you could save on taxes when you pay for qualified medical expenses with funds from your HSA—it’s like getting 30 percent off on every purchase. You can save even more by using payroll deduction if offered through your employer.*

• Eyeglasses purchased with a regular credit card: $250
• That same pair of eyeglasses purchased using your HSA: $175 = $250 minus $75 in tax savings (30% of $250)

It’s easy to pay for qualified medical expenses with funds from your HSA. Just use your Health Savings Account Debit MasterCard^® at the point of purchase or when you get your bill. Or, use online bill pay.

  Take charge of your health care spending

This month’s focus: how today’s choices impact tomorrow’s health care costs. The choices you make today can have a big impact on your future health care costs and your ability to cover those costs.

• Lifestyle choices. The effects of unhealthy choices, such as poor eating habits or smoking, aren’t always noticeable right away. But they can affect your health—and your health care costs—far into the future:

•  
• Being overweight. Average health costs are 10 to 12 percent higher.**
• Smoking. Average health costs are 30 to 33 percent higher.**
• Living a stressful lifestyle. Average health costs are 46 percent higher.**
• Health choices. Health problems caught early are usually easier and less costly to treat. Take advantage of your plan’s preventative care options, such as annual exams and health screenings.
• Financial choices. Take time to evaluate your savings strategy for planned and unplanned medical expenses.

To get an idea of your future health care costs and how today’s choices affect them, try OptumHealth’s Future Health Expense Calculator. Complete some basic health and financial information and you’ll get an estimate of how your future health care costs compare to your projected savings. Take a minute to change some of your answers—your weight or smoking status, for example. Your new results will show you how better health choices today can reduce your future health care costs.

  Your HSA: Take it with you

You own your account. That means the money in your HSA is yours to keep even if you change jobs, change health plans, quit working to go back to school or retire and go on Medicare. Money you don’t use rolls over each year. You can always tap into your HSA and use the funds for qualified medical expenses, no matter where your career or life lands you.