Use of Health Savings Account During Open Enrollment

BRYAN, Texas (KBTX) – There are even more ways to maximize health care longevity during open enrollment that began October 15th. A College Station financial advisor suggests tapping into your health savings account.

A recent NerdWallet survey found that 35% of Medicare users are unsure whether they have the right coverage.

This includes opening a health savings account (HSA), according to Joshua Landman, a financial advisor at a local Edward Jones branch.

Landman asked and answered the question, “Who is eligible for an HSA?” If you have high-deductible health insurance, you are generally eligible. So that means you pay lower premiums month to month, but you have a higher deductible or have to pay a higher amount out of pocket.”

HSAs are triple tax efficient, Landman explained. That means the money comes in pre-tax, is deducted from your income, tax-deferred, and comes back tax-free as long as you use it for qualified health care.

“‘How much can you contribute to an HSA?’ This is important. For 2025, an individual who has their own health insurance will be able to contribute $4,300 per year. If you have a family plan, you could put $8,550 a year into that account,” he said.

Landman said we can tie it to Medicare by not spending the HSA and continuing to save until a comfortable financial goal is reached. Landman suggests $50,000.

You can’t contribute to an HSA after you enroll in Medicare, and you can’t use it if you have a plan that doesn’t require deductibles or copays. If you find yourself overwhelmed, Landman also recommends reaching out to a trusted source for advice.

“Call your employer’s human resources department, find a financial advisor, go to someone and say, ‘Hey, I saw a crazy money guy on TV and I need to know more about HSAs,'” Landman added.

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