Patients typically have a separate insurance plan that covers critical illness and hospitalization in addition to the direct care program. “It doesn’t eliminate the need for health insurance in the event of an accident,” Mr. Martin said. “That doesn’t mean you don’t need insurance.”
The preferential treatment for telemedicine services is now permanent.
The budget law gave millions of Americans permanent access to telehealth services, outside of health insurance deductibles, without jeopardizing their eligibility to contribute to HSAs. Telemedicine, sometimes called telehealth, allows patients to consult doctors online. Services were made HSA-compliant during the pandemic, but that policy was set to expire. The update makes the policy permanent – retroactive to January 1, 2025 – meaning HSA plans can cover telehealth services before patients meet their plan's deductible.
How much can I contribute to an HSA?
In 2026, individuals can deposit up to $4,400, while those with family coverage can deposit up to $8,750. Those 55 and older can donate an additional $1,000.
What should I look for in a health savings account?
According to Morningstar, find out about any monthly account fees, a variety of investment options and, if the HSA is to be used as a basic savings account, the interest rate paid. The company recently evaluated about a dozen HSA providers for their use as either spending accounts for ongoing medical expenses or as long-term investment accounts.
Only four companies—Fidelity, HealthEquity, HSA Bank, and Saturna—performed “above average” or better in both situations. (The analysis included plans offered only to individuals; HSAs available through job-based health plans were not included because details vary by employer, Morningstar said.)
Most people use the money in HSAs to cover ongoing healthcare needs and keep the money in a basic spending account where it generally earns paltry interest rates. According to Morningstar, Fidelity paid the highest rate at 2.19 percent, but that is still below the inflation rate, which was 3 percent in September.