A Health Savings Account is an account that offers a different way to save for future health care expenses. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.

You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. A HDHP generally has lower premiums than traditional health care plans. The money that you save on premiums can therefore be put in to the Health Savings Account.

You own and control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow. The HSA money stays with you even if you switch employment; and there is no "use-it or lose-it" provision. See Truth In Savings for additional information.

Eligibility
Any adult can contribute to an HSA if they:

• Have coverage under an HSA-qualified "high deductible health plan" (HDHP).
• Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care or long term care insurance are permitted).
• Are not enrolled in Medicare.
• Cannot be claimed as a dependent on someone else's tax return.

How it Works

1. Open a HSA at Financial Center.
2. Contributions to your HSA can be made by you, your employer, or both.
3. When you incur a medical expense, you withdraw money from your account to pay that medical expense.
4. When you file your taxes, there is a line item on your tax form where you declare how much money you've contributed to your HSA and that amount is deducted from your taxable income.

Opening a Health Savings Account
You can open a HSA at Financial Center. Your employer may also set up a plan for employees as well. You may call a Member Services Representative at 317.916.7700, e-mail , or talk to our representatives at one of our centers for additional information.

Accounts

• HSA Savings Account
• HSA Checking Account and HSA Interest Checking Account
• HSA Money Market Account and HSA Premium Money Market Account
• HSA Share Certificate Account

Advantages of an HSA

• Security - Your high deductible insurance and HSA protect you against high or unexpected medical bills.
• Affordability - You should be able to lower your health insurance premiums by switching to health insurance coverage with a higher deductible.
• Flexibility - You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs, such as:
• Health insurance or medical expenses if unemployed.
• Medical expenses after retirement (before Medicare).
• Out-of-pocket expenses when covered by Medicare.
• Long-term care expenses and insurance.
• Savings - You can save the money in your account for future medical expenses and grow your account through investment earnings.
• Control - You make all the decisions about:
• How much money to put into the account.
• Whether to save the account for Future expenses or pay current medical expenses.
• Which medical expenses to pay from the account.
• Whether to invest any of the money in the account.
• Which investments to make.
• Portability - Accounts are completely portable, meaning you can keep your HSA even if you:
• Change jobs.
• Change your medical coverage.
• Become unemployed.
• Move to another state.
• Change your marital status.
• Ownership - Funds remain in the account from year to year, just like an IRA. There are no "use it or lose it" rules for HSAs.

Tax Savings
An HSA provides you triple tax savings:

1. Tax deductions when you contribute to your account;
2. Tax-free earnings through investment; and,
3. Tax-free withdrawals for qualified medical expenses.