BASE® Debunks 5 Health Savings Account Misconceptions

Health Savings Accounts (HSAs) continue to grow in popularity yet remain one of the most misunderstood solutions in an employer’s benefit strategy.  With many misconceptions, the gist of the HSA is that it is a type of personal savings account set up to pay for health care costs now, or in the future, with the opportunity to diversify retirement portfolios!

The BASE® Health Savings Account (HSA) is designed to help individuals save and pay for qualified medical expenses, while allowing the opportunity to save for the future, and/or invest funds.  The HSA allows employees in a qualifying High Deductible Health Plan (HDHP) to save money on a pre-tax basis to pay for qualifying medical expenses now or in the future.

The HSA is available to businesses of any size with an HDHP in place with an opportunity to provide a means for their employees to pay for thousands of eligible items such as copays, over-the-counter medications, dental, vision, and more with tax-free dollars.  HSAs offer a triple tax break – contributions are pre-tax, the money grows on a tax-deferred basis, and can be used tax-free for eligible medical expenses.

Below, we will debunk a few of the misconceptions of the HSA:

MISCONCEPTION 1 - You Can’t Take Your HSA with You When You Change Jobs:  An employee can take the HSA with them when leaving a job, unlike the FSA.  The employee can maintain the HSA through the current administrator or roll over to a new one.  As long as the employee maintains, or enrolls in a new HDHP, the employee can continue to contribute to the HSA.

MISCONCEPTION 2 - The HSA Funds Must Be Used by Year-End:  This is one of the biggest misconceptions.  Unlike the FSA, the HSAs do not have a use-it-or-lose it rule.  The money rolls over from year to year and can be used to pay for medical expenses at any time.  

MISCONCEPTION 3 - HSAs Are Complicated:  HSAs are a simple way to reduce taxable income, cover qualified health care expenses, and invest for the future.  We know that when it comes to health care, things can be complex, but these pre-tax savings accounts are one of the easiest solutions for paying for health care expenses.

MISCONCEPTION 4 - It is a Health SAVINGS Account, Not Health SPENDING Account:  For many, the HSA is a quick and easy way to pay for their everyday health care expenses.  But by only utilizing the account for health care expenses, employees are not using their HSA at its fullest potential.  The HSA can be used for both health care expenses and investment opportunities that allow the employee to invest once the employee has met the threshold.

MISCONCEPTION 5 - HSAs are Only for Older/ Sick Employees:  The HSA is for any eligible employee, regardless of age or health.

We want every business to experience the BASE® Difference.  With BASE®, employers will be offered a custom technology solution custom to their business alongside a service experience that is second to none.  Employers will experience:

  • Multi-account coordination
  • Online portals to serve them and their employees, along with an easy-to-use mobile app
  • Flexible contribution options and debit card for employees
  • Comprehensive planning & reporting
  • And more

The BASE® HSA offers excellent tax benefits to help individuals make the most of every health care dollar, making it a powerful tool for diversifying retirement portfolios.  For more information, call BASE® at 888.386.9680 or visit

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