Cover Healthcare Expenses With a Credit Union HSA
Annual checkups. Surgery. Specialists.
Life is full of both expected and surprising medical expenses. Even though you have insurance through a high-deductible health plan (HDHP), keeping up with it all can be difficult.
Have you ever wished you could just set aside money each year to help cover costs when they pop up? That’s what a Health Savings Account (HSA) does. You own your account, so it moves with you as jobs and circumstances change. Your tax-free contributions will save you money, and you can even invest funds in your HSA.
HSAs are a healthcare win-win. They allow employers to save money on insurance premiums, many of whom return those savings to their employees by making account contributions. HSAs also give you tax savings on your deposits, investment earnings and withdrawals – which are easy with a debit card.
An HSA credit union like CME FCU can help you save on your medical bills and beyond.
A black stethoscope is arranged on a light blue background around a sticky note that reads “HEALTH SAVINGS ACCOUNT”.
How do Health Savings Accounts Work?
What is an HSA? A Health Savings Account is a tax-favored savings account you’re eligible for through an employer or financial institution like CME FCU. If you have a high-deductible health plan (HDHP), an HSA account lets you make tax-deductible contributions to save for qualified medical expenses.
For 2026, the annual contribution limit is $4,400 pre-tax for individual health insurance plans and $8,750 for family plans – and what you don’t use rolls over to the next year. On years when you’re expecting surgery or a big life change, it might be wise to max out your contribution, but you never have to. Your employer may also contribute to your HSA, which can limit your contributions.
An HSA will relocate money from your paycheck pre-tax, which helps you save on copays, appointments, prescriptions and approved medical-use items, from sunscreen and bandages to wheelchairs and menstrual products. And you earn interest on your account!
Can Anyone Open an HSA?
To be eligible for an HSA, you must be covered by an HDHP. You cannot be covered by any other health plan or eligible for Medicare. You are also not eligible if you can be claimed as a dependent on someone’s tax return.
FSAs vs. HSAs
What’s the difference between a Health Savings Account and a Flexible Spending Account? Both may be offered when you’re starting a new job or switching insurance. The names can be confusing, and they function similarly. How do you pick?
If you’re approaching retirement age, an HSA might be more advantageous because you can use it like an additional 401(k) or IRA once you turn 65. You can avoid the 20% penalty for using the funds for things that are not eligible medical expenses, although you will still owe income tax. Individuals who are 55 and older are also eligible to make an additional $1,000.00 catch-up contribution per year.
FSAs typically have a smaller contribution max and can be offered by employers even if you don’t have an HDHP. One benefit is that your entire elected contribution is available from day one, but a downside is that your contribution doesn’t roll over to the next year. For an HSA, your funds have to accumulate before you spend them, but you can pay yourself back.
If you’re offered both account options, one plan may work slightly better than another, but they are very similar. Do the research, weigh the benefits and talk to your HR department to help you decide what makes the most financial sense for you and your family.
The Credit Union HSA Advantage
Credit unions that offer HSAs come with huge perks. You already trust CME FCU staff that live in the Columbus area community with your banking – and they’ll be here to help set up your Health Saving Account and answer questions. For those who change employers or are self-employed, having an HSA through their credit union can simplify managing their account and making payments.
With a CME HSA, you get no fees, access to electronic Bill Pay and a debit card to pay on the go.
If you live in Clintonville, Delaware, Downtown Columbus, Pickerington or Westerville, having a CME HSA means that you can easily run to a branch or make use of online access anytime. You can also invest funds your HSA funds after a $1,000.00 contribution to it at CME.
How to Open a Health Savings Account
HSAs have a simple application process, usually requiring your Social Security Number, a valid photo ID and your contact information, but if you’re receiving insurance through a job, you may also need to submit some employment information.
At credit unions like CME FCU, there are typically multiple ways you can apply. You can open a Health Savings Account online, Schedule an appointment with CME’s team, or visit a branch.
Once your account is set up, you can make your contribution for the year and start paying for qualified medical expenses!