5 Stages of Health Saving and Spending
Optum Bank Health Finance JourneyTM model
Saving and spending for health care isn’t a sprint.
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It’s a journey. And you have questions. And you may not be sure where to begin.
Start with your OPTUMBank® health savings account.
From the moment you decide to open your account— to maximizing your health care dollars, your Optum Bank HSA journey will take you through five stages.
(Graphic of 5 Stages include: Decide, Open, Use, Manage, Optimize)
(Stage 1- Decide)
Before you decide to open an HSA, find out if you’re eligible.
The main requirement is that you’re covered under a qualifying high deductible health plan, or HDHP. There are also additional requirements defined by the IRS.
(Graphic of additional requirements checklist include: Not enrolled in Medicare, not covered by any other health plan, covered under an IRS qualifying HDHP and may not be claimed as a dependent on another plan)
An HSA offers you an easy, convenient, income tax-free way to save and pay for qualified medical expenses for you and your eligible dependents.
You can make contributions with pre-tax dollars—so money goes in income tax-free.
And when the money is used to pay for qualified medical expenses-- it comes out income tax-free.
Your savings can also grow income tax-free.
Three very good reasons to say yes to an HSA!
(Stage 2- Open)
Now that you’ve decided to open your HSA, it’s time to get your account up and running!
There are just a few simple steps to complete an application.
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Or, your employer may have already opened your account for you.
(Talk to your employer or visit optumbank.com)
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You’ll also need to decide how much to contribute to your account; up to the current IRS limit.
An easy way to contribute to your HSA is through payroll deductions, if your employer offers this option. Or - you can make a one time or recurring contribution to your account online.
Remember - you can stop, start or change your contribution amount at any time.
The best part? The money in your account rolls over from year to year. And it’s always yours to keep. Even if you change jobs or retire.
(Stage 3- Use)
Now it’s time to start using your HSA dollars to pay for qualified medical expenses.
It’s easy! You can use online bill pay or your Optum Bank HSA debit card.
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You can also log in to your account to request a reimbursement if you’ve already paid your bill out of pocket.
Questions? Online tools can keep you on track and help is always just a click away.
(Stage 4- Manage)
You’re doing a great job managing your HSA, way to go!
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You know making informed decisions at every stage of the journey is key to making the most out of your healthcare dollars.
Be sure to stay up to date with your account activity, view monthly statements and track your cash flow. Online tools can help you track your contributions and manage your receipts.
Also --- be sure to maximize your contributions. If you’re 55 or older, you can contribute an extra $1,000 annually as a catchup contribution.
(Stage 5 Optimize)
The fifth stage of your journey? Optimizing your health care dollars!
Once your HSA reaches a certain designated balance, known as the investment threshold, you can choose to invest a portion of your HSA dollars in mutual funds.
Unlike a 401k, if you happen to incur a large health expense—those dollars are yours to use at any time.
Save, invest and grow those dollars to help you build a nice nest egg for retirement.
Decide. Open. Use. Manage. Optimize. The five stages of your Optum Bank HSA journey.
For questions or to learn more, visit optumbank.com.
Disclaimer: Investments are not FDIC insured, are not guaranteed by Optum Bank®, and may lose value.
Heath savings accounts (HSAs) are individual accounts offered or administered by Optum Bank®, Member FDIC, and are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change.
© 2017 Optum, Inc. All rights reserved. PR1553 65978-062017
Whether you just opened a health savings account (HSA) or you’ve been contributing for years, you likely have questions. We all do. And how you use your HSA will likely change over time. Most of us go through a five-stage journey as we save and pay for qualified medical expenses.
Explore where you are in the journey
- Decide: I’m thinking about opening an HSA.
- Open: I have opened an HSA but haven’t used it much.
- Use: I'm using as much money as I'm contributing to my HSA.
- Manage: I'm using my HSA but have enough funds left over to potentially begin investing.
- Optimize: I’m turning my HSA into an investment and maximizing it.