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Capital Blue Cross Learning Center

Benefits of Contributing to Your HSA

Reduce your taxable income

Contributing to your HSA will lower your overall taxable income. When you contribute through your employer, the money goes into your HSA before taxes are taken out. And any contribution you make on your own is tax-deductible.

Pay no taxes on your eligible medical expenses 

When you use funds from your HSA to pay for eligible medical expenses, you pay no taxes on that money. You can use your HSA to purchase prescription medications, bandages, chiropractic treatments, reading glasses, and many other items and services. 

Earn tax-free interest on your HSA funds:

Depending on your HSA plan, you may receive earnings off interest on your HSA balance. The more you contribute, the more interest you can earn on your account. You won't be taxed on any interest you earn in your HSA account and this interest does not count toward your yearly contribution limit.

Here’s how to check your HSA plan:

  1. Sign in at and click Login in the top right corner. Enter your username and password and click Sign In. Click the Account Summary link in the middle of the page, directly below your account balance.
  2. Click on the My Profile menu.
  3. Choose See All Settings from the menu.  The Account & Plan Settings page will be displayed.
  4. Locate your HSA on the page. Your plan information is listed under HSA Plan.

Earn more interest by leaving your money in your HSA

You aren’t required to seek reimbursement for your medical expenses right away. In fact, you can reimburse yourself from the funds in your HSA at any time, even years later. Your money stays in your HSA. And unlike an FSA, there's no "use it or lose it" rule.

By leaving your money in your HSA, you'll build up your balance. Over time, you'll earn interest on that balance, and you’ll still have those funds available if a large or unexpected expense comes up. Just make sure to keep your receipts, prescriptions, and other documentation of these expenses.

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