A Smart Way to Save for Healthcare

Healthcare costs can be unpredictable, but a Health Savings Account (HSA) provides a flexible, tax-advantaged way to save and pay for qualified medical expenses. At Highpoint Community Bank, we help our neighbors understand how HSAs work and how they can be an essential part of a strong financial plan.

Understanding HSAs

A Health Savings Account (HSA) is a personal savings account that works alongside a high-deductible health plan (HDHP). Funds contributed to an HSA can be used to pay for qualified medical expenses — including doctor visits, prescriptions, dental and vision care.

Key points for Michigan residents:

• HSAs are owned by you, not your employer. That means your account goes with you if you change jobs or health plans. (michigan.gov)
• Funds roll over year to year; there’s no “use it or lose it” rule.
• Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Who Can Open an HSA?

To be eligible in Michigan, you must:

1. Be covered by an HSA-eligible HDHP.
2. Not have other health coverage that disqualifies you from an HSA.
3. Not be enrolled in Medicare.
4. Not be claimed as a dependent on someone else’s tax return. (michigan.gov)

Contribution Limits

For 2026, the IRS limits HSA contributions as follows:

• $4,400 for individual coverage
• $8,750 for family coverage
• Additional $1,000 “catch-up” contribution if you’re age 55 or older (michigan.gov)

Using Your HSA

HSAs can be used to pay for:

• Doctor visits, hospital care, and prescriptions
• Dental and vision care
• Certain over-the-counter medications and medical supplies
• Long-term savings and investment for healthcare in retirement

Many HSA holders also choose to invest funds once balances reach a certain level, allowing potential growth over time while maintaining the account’s tax advantages.

Take the First Step

A Health Savings Account is more than a way to pay for medical costs; it’s a tool for building long-term financial wellness. Visit your nearest Highpoint Community Bank branch or contact us to open an HSA and start planning for a healthier future.