Health Savings account

Home Federal Bank and the Dental Benefit Program have partnered together to offer patients a remarkably easy way to budget and pay for dental work. We have made it simple for patients to set up a free Health Savings Account void of typical set up fees and annual charges.

Establishing an HSA plan is as easy as 1-2-3…

1. Take out a “high deductible” HSA-Qualified health insurance policy. Not every “high deductible” insurance plan will qualify you for the HSA plan—it must be a policy that meets the specific HSA design specified by Congress. The 2012 annual minimum deductible for an individual is $1,200 with a maximum out of pocket expense of $5,950. The 2012 minimum deductible for a Family is $2,400 with a maximum out of pocket expense of $11,900.

2. After the HSA-Qualified insurance policy is issued and in-force, then establish the actual HSA savings account by completing the following simple form: Home Federal Bank–Health Saving Account Application.

3. You may begin funding your new HSA savings account through a variety of methods. Be sure not to contribute more than the maximum amount allowable each year. Below are a few of the more efficient ways of funding your HSA account.

a) (ACH) Account Transfer Authorization Form: This form is for patients who would like to have funds transferred monthly from their existing bank account into their new HSA accounts at Home Federal Bank.

b) Set up bill pay with your current checking account to contribute monthly to your new HSA. This process would be similar to how you may be paying monthly bills.

c) Send random payments of various amounts throughout the year.

What are the advantages of having an HSA and Dental Benefit Program?

Many patients with traditional dental insurance often wonder how their monthly premiums are being used. Considering dental insurance requires waiting periods, deductibles and co-payments on most procedures, patients often wonder if they would be better off simply saving their monthly premiums and using those same dollars to pay directly to the dentist for their dental work.​

With the discounted savings you receive through the Dental Benefit Program, combined with dollars budgeted in your own HSA, there is no better way to take care of your dental needs.

How does an HSA Work?

With an HSA you can make tax-deductible contributions each year to pay for current and future medical/dental costs. Money deposited into the HSA can be easily accessed with your Home Federal Bank check, debit card or online bill pay to pay medical bills.

What you don't use in any given year will stay invested and continue to grow tax-free, assuming you eventually pull it out to use for medical costs. If you use any withdrawal for non-medical costs, it will be taxed when you use it. If you are not yet 65, you'll owe a 20% penalty, so draw on the account to pay medical/dental costs only.

One of the greatest benefits of utilizing an HSA is that it may be rolled over from year to year, allowing you to save for future medical/dental costs.

Who is Eligible for an HSA?

Anyone who is:

• Covered by an HDHP (High Deductible Health Care Plan) - School districts, state and county governments, self-funded
  employers
• Not enrolled in Medicare
• Not covered under other health insurance*
• Not another person's dependent

*Other health insurance does not include: specific disease or illness insurance, accident, disability, dental care, vision care and long-term care insurance.

Who does the HSA cover?

Anyone who is:

• The account holder (person covered by the HDHP)
• Spouse of that individual (even if not covered by the HDHP)
• Dependents of that individual (even if not covered by the HDHP)

The annual contribution limit to an HSA in 2012 is $3,050 for individuals and $6,150 for families. If you are at least 55 years old you can contribute an additional $1,000 in 2012.