Genelex Blog

Your HSA and you: A flexible way to cover medical expenses

You’ve likely heard the term “HSA” used when talking about health insurance plans. But what exactly is it, and what do those three letters stand for?

HSA stands for “health savings account.” It’s a savings account that’s often created in connection with a high-deductible health insurance plan and is designed to help you pay medical expenses.

Generally, any adult covered by a high-deductible insurance plan may establish an HSA. For 2015, a “high-deductible plan” is defined as one with an annual deductible of at least $1,300 for individuals and $2,600 for families.

Benefits of an HSA

An increasing number of employers offer HSAs as one of a handful of health insurance benefits available to their employees. Some offer contributions to their employees' HSAs, similar to how certain companies contribute to their employees’ 401k accounts.

HSAs come with a number of benefits (as described by the IRS):

Contributions to the HSA are 100 percent tax-deductible (up to the yearly legal limit)

The contributions remain in your account until you use them

Distributions may be tax free if you use them to pay for qualified medical expenses

An HSA is “portable.” It stays with you if you change employers or leave the work force.

After you turn 65, you can withdraw money from your HSA for non-medical expenses

Pharmacogenetic Testing and HSAs

“A qualified medical expense” covers a wide variety of procedures, such as tests, that a doctor may decide are medically necessary. Depending on the specific HSA, one of these expenses can be drug-sensitivity, or pharmacogenetic, testing, as long as a doctor has prescribed the test.

Pharmacogenetic testing can help you and your doctor decide what medications will likely work best for you. Pharmacogenetics describe a relatively simple concept: differences in your DNA affect how you respond to many medications, over the counter drugs, herbals and recreational substances

Private insurance covers pharmacogenetic testing in many diagnostic situations, including adverse drug reactions or lack of response to medication, pain management, cancer management, and management of many co-morbid conditions. For testing situations not covered, money in an HSA can often be used to pay for the cost of the test.

For more information on HSAs covering pharmacogenetic testing, contact your health insurance provider or your’ employer. For an in-depth look at HSAs in general and how to make the most out of them, check out this Forbes article.

YouScript Pharmacogenetic Testing

Has your doctor prescribed YouScript pharmacogenetic testing for you, but you’re worried about paying for it? Genelex, the makers of YouScript, is committed to making the benefits of pharmacogenetic testing accessible and affordable.

Even if you don’t have health insurance, are on a high-deductible plan, or your final patient responsibility poses a financial hardship for you, we offer a Financial Assistance Program, which includes reduced fee options for those who qualify.

Payment through HSAs is generally simple. Patients can: