You can use a Colorado Health Savings Account (HSA) with your Colorado state exchange health insurance plan, but the plan must be a High Deductible Health Plan (HDHP) that is HSA-eligible.
The Johnson family, who recently moved to Colorado Springs, wanted to find a way to save for their growing healthcare expenses. They had heard about Health Savings Accounts (HSAs) but didn’t fully understand how they worked or if it was the right option for them. After a consultation with our agency, we provided a clear explanation of how an HSA could complement their high-deductible health plan.
We assisted the Johnsons in selecting a Colorado Health Insurance plan that was Colorado Health Savings Account-eligible, and we walked them through the benefits of contributing regularly to their account. With our guidance, the Johnsons are now building a nest egg for future healthcare costs, all while enjoying the tax advantages of their HSA. They feel secure knowing they’re prepared for whatever medical expenses may come their way.
Colorado Health Savings Account Key Considerations:
- HDHP Requirement: To contribute to a Colorado HSA, your health insurance plan must qualify as a High Deductible Health Plan (HDHP), according to the IRS’ requirements.
- Plan Selection: You must choose a plan labeled as HSA-eligible. This designation indicates that the plan meets the IRS requirements for an HDHP.
- Colorado HSA Benefits: Contributions to an HSA are tax-deductible, grow tax-free, and can be used tax-free for qualified medical expenses.
- Setting Up an Account: You’ll need to set up an HSA with a bank or financial institution that offers Colorado Health Savings Accounts.
- Contribution Limits: For 2024, the HSA contribution limits are $4,150 for an individual and $8,300 for a family.
Click Here to watch an Ian Young Health Insurance video about HSA-Compliant Plans.
Schedule an appointment with Ian Young Health Insurance today and take advantage of the HSA tax benefits while saving for future healthcare. Email us with any questions.
