HSA Bank is a health savings account (HSA) administrator in the United States. Based in Milwaukee and Sheboygan, Wisconsin, the company focuses on the administration, service, and support of health accounts including Health Savings Accounts, Flexible Spending Accounts, and Health Reimbursement Arrangements. It serves more than 2 million members with over 5 billion dollars in total assets.HSABank
In 1997, HSA Bank entered the consumer-directed healthcare market by providing medical savings accounts (MSA) to small employers and the self-employed. Since the passage of the Medicare Prescription Drug, Improvement and Modernization Act in 2003 and the creation of health savings accounts in 2004, HSA Bank has serviced and administered health savings accounts to companies of all sizes as well as individuals.HSABank
HSA Bank is a division of Webster Bank, N.A., Member FDIC, a subsidiary of Webster Financial Corporation.
Origin of HSA Bank
HSA Bank began as the State Bank of Howards Grove, which opened in January 1913 in northern Sheboygan County. This rural, community bank would become HSA Bank decades later.HSABank
In 1997, the State Bank of Howards Grove entered the consumer-driven healthcare market by providing MSAs.
In May 2002, the bank acquired approximately 7,000 accounts and $20 million in balances from Citizens Bank, which was in the process of merging Mellon Bank’s retail business.
State Bank of Howards Grove also began using the trade name MSA Bank in 2002.
After the advent of health savings accounts in 2004, MSA Bank redirected its energy and resources to HSAs and changed its name to HSA Bank.HSABank
Growth of HSA Bank
In March 2005, HSA Bank officially became a division of Webster Bank, N.A., Member FDIC, a subsidiary of Webster Financial Corporation.HSABank
Since the creation of health savings accounts, HSA Bank has continued to expand its HSA offering. The company currently provides its customers with multiple enrollment options, including customized online enrollment sites, and utilizes real-time Web services, Internet Banking Single Sign-On (SSO), and debit cards, among other features.
In 2006, Kiplinger’s Personal Finance named HSA Bank “the best place to go” for an HSA, citing the company’s “low fees, a knowledgeable call center, and plenty of investment choices.”
In 2008, HSA Bank became the first HSA administrator to surpass $500 million in HSA deposits.
In 2013, HSA Bank was listed in Kiplinger’s “Best of Everything”. In 2014 HSA Bank announced a partnership with Evolution1 to expand its offerings from only HSAs to other “Consumer-Driven Healthcare Solutions
Health Savings Account (HSA)
What’s an HSA?
This is a bank account you own to pay for eligible health care expenses or you can use it to save toward retirement.
Why would I want an HSA?
It Offers Tax Savings
Money is deposited from your paycheck before it’s taxed.*
You Can Spend or Save
Use it now to pay for health care expenses or save it for the future.
Take it with you if you leave your health plan, change jobs, or retire.
How an HSA works:**
- An HSA is offered with a qualified High-Deductible Health Plan (A qualified High Deductible Health Plan (HDHP) typically has lower premiums/plan contributions and higher deductibles than a traditional health plan) and the account is opened through the HSA provider chosen by your employer. You, your employer, and others can put money into your HSA up to a certain yearly limit set by the IRS guidelines.HSABank
- Money is deposited from your paycheck into the account before it is taxed, so you don’t pay taxes on those wages.*
- Since you own the account, you can continue contributing to it if you leave your health plan, change jobs, or retire.
- Use your HSA to pay for qualified health care expenses for you and your covered dependents. Some HSAs include a debit card so you can easily pay from your account at the time of service.
- Money in your HSA may earn interest. When your account reaches a minimum balance, you may be able to open a tax-advantaged* investment account.HSABank
- You can withdraw the money at age 65, but you’ll need to pay income taxes on it. If you withdraw it under age 65, the money is subject to income tax and may also be subject to a 20% penalty tax.