The Cost-Effective Plan for Your Healthcare!

A broken arm, new contact lenses, a painful backache... All of these have something in common- they can happen to the best of us! We would like to introduce a smart way for you to save and pay for those little bumps in the road -- introducing the Black Hills Federal Credit Union Health Savings Account!

What is a Health Savings Account?
A Health Savings Account (HSA) is a federally designed program created to help you save for qualified medical and retiree health expenses on a tax-free basis! You can use the money in the account to pay for qualified medical expenses for yourself, your spouse, or your dependent children, regardless of whether they are covered by your health plan.

You must have coverage under an HSA-qualified “High Deductible Health Plan” (HDHP) to open and contribute to an HSA. Consult with your insurance provider if you are unsure of your plan.

How can a BHFCU HSA benefit you?

Tax Advantages!
An HSA can provide you with triple tax savings – contributions to your account can be:

• Tax deductible
• Interest and investment gains on your HSA may be tax-free
• Withdrawals from your HSA are tax-free when used for qualified medical expenses
  

Pay Now or Save – You are in Control!
You are in control of how your HSA dollars are used. You make the decisions regarding:

• How much money to put into the account, up to the maximum contribution
• Whether to pay for expenses now or save for future expenses

Balances Roll Over From Year to Year
Unlike other medical savings products, HSA balances will automatically roll over from year to year, allowing you to build up savings to cover qualified medical expenses when the need arises. There is no “use it or lose it” scenario every year with an HSA.

Pay for Medical Expenses Your Plan May Not Cover
You can use your HSA to pay for eligible medical expenses that apply toward your deductible, co-payment, and certain over-the-counter medication, or pay for qualified medical expenses that your health plan does not cover, such as:

• Contact lenses
• Dental and orthodontic services
• Certain type of alternative medicine
• Qualified long-term care insurance

You also have the choice of saving the money in your account for future needs. Save or spend – it’s your choice!

Savings
Our HSA accounts pay competitive dividend rates. Investment options include savings accounts, checking accounts and certificates.

Take it With You!
You own the money in the account and it remains in place regardless if you switch jobs, change health insurance companies, move to another state, change marital status, become unemployed or retire.

Lower Your Monthly Health Insurance Premiums!
You may be able to lower your health insurance premiums by switching to coverage with a higher deductible.

Easy to Open and Use!
There’s no better place to have your HSA than with Black Hills Federal Credit Union! We’re separate from your employer and insurance company, so you can change jobs or insurance plans without changing your HSA.

We provide convenient ways to use your HSA. Your qualified medical expenses can be
paid by check, Visa® HSA Check Card, or online through SmartPay. You will have
online access to your account to check balances and review payments!

We would be happy to answer any of your questions!

• Please use our LiveChat button located on the left to speak with a BHFCU employee
• Call us weekdays from 8 a.m. to 5 p.m. at (605) 718-1818
• Stop by any of our Member Service Centers in Rapid City, Spearfish, Hot Springs, or Wall

Frequently Asked Questions

Who can have an HSA?
Adults who meet the following criteria:

• Have coverage under a "High Deductible Health Plan" (HDHP)
• Have no other first-dollar medical coverage
• Are not being claimed as a dependent on someone else's tax return
• Are not enrolled in Medicare

What is a High Deductible Health Plan?
The guidelines for an HSA-qualified HDHP are adjusted annually for inflation. Consult
your insurance provider for current HDHP deductible limits.

What happens if I spend my HSA money on other things?
HSA funds that are used on anything other than “qualified medical expenses” are
taxable as income and subject to an additional 10% tax penalty. After you turn age 65,
become disabled, or enroll in Medicare, the account can be used for other purposes
without paying the additional 10% tax penalty.

Who can contribute to an HSA account?
Contributions can be made by the account owner, their employer, or both.

What happens to my HSA upon death?
If married, your spouse becomes the owner of the account and can use it as if it were
his/her own HSA. If not married, the account is no longer treated as an HSA. It will
pass to your beneficiary, or become part of your estate, and the funds will become
taxable.

For more questions and answers about Health Savings Accounts, visit the U.S.
Department of Treasury’s website: www.treas.gov/offices/public-affairs/hsa/

Information stated is not intended as tax advice. Please visit a tax professional.