As we’ve seen from this summer’s town hall meetings and last night’s address from President Obama, healthcare is a hot-button issue that has our leaders trying to balance costs with quality care. In this economy, as companies look for ways to cut operating expenses, some businesses are opting to offer employees a high deductible health plan (HDHP). As a healthcare consumer, it’s important to know the details so you can maximize the benefits of these plans.

An HDHP typically offers a higher deductible in return for generally lower premiums. Since benefits will vary based on your policy, you should contact your insurance provider for the exact details of your plan.

If you are enrolled in an HDHP, you should be familiar with or at least heard of a Health Savings Account (HSA), but since they are a newer concept in healthcare, most of us aren’t comfortable with them yet. Understanding how your HSA works and what you can use the funds for is a major part of benefiting from this type of account.

While you are eligible to open an HSA when you are enrolled in an HDHP, keep in mind your HDHP is your medical insurance plan that you use when you go to your doctor or pharmacy. Your HSA is an account, like a checking or savings account, that you open at your financial institution and use for medical, dental, and vision expenses for you or dependants.

The benefits of using funds in your HSA to pay for eligible expenses are that the funds are tax exempt, they roll over year after year, and you are the owner of your HSA. You will keep the funds in your HSA should you cancel your insurance or leave your employer.

The U.S Treasury has a great FAQ page dedicated to answering many HSA-related questions.

What type of expenses can you use your HSA funds for?
An eligible expense is considered to be for the prevention or treatment of a physical or mental defect or illness. The lists below may include examples of when you can use your HSA funds, but you should always check with your tax adviser to make sure you are using your money correctly. Also remember to keep your receipts every time you use your HSA funds in case your account is ever audited.

• Chiropractor
• Contact lenses and solutions
• Dental treatment
• Doctor’s office visits
• Drugs, prescriptions
• Eyeglasses, and exams eye surgery (such as laser eye surgery)
• Operations/surgery (excluding unnecessary cosmetic surgery)
• Over-the-counter (OTC) medical expenses for items used solely to treat a medical condition (such as aspirin, pain relievers, decongestants, cough suppressant, etc.)
• Physical therapy
• Psychiatric care
• Special education (for learning disabilities)
• Stop-smoking programs (including nicotine gum or patches)

While the healthcare debate rages on, be sure you are getting the most from your healthcare coverage, especially if that coverage includes an HDHP and HSA.

For more information, visit the U.S. Treasure website or Arizona Central Credit Union’s Health Savings Account web page.

Tanya Gardea is the Human Resources Administrator for Arizona Central Credit Union, where she has worked since December 2006. She moved to Phoenix from El Paso,Texas and currently resides in Goodyear.