My HSA Story: 3 Americans Tell Us Why They Love Their HSAs

As part of HSA Day on October 15, we talked to three health savings account (HSA) participants to learn about how they first discovered the benefits of an HSA, how an HSA helps them meet their financial goals, and what they’re loving right now about their accounts. 

Here’s how three HSA participants just like you have found success using their tax-advantaged accounts.

Scot, 54 years old — Tucson, Arizona

For Scot, a 54-year-old consultant from Tucson, Arizona, his HSA strategy is focused on saving for the unknowns of the future. Scot signed up for his first HSA nearly 15 years ago as a full-time employee. When he became self-employed, he and his wife started contributing to a joint account. They max out their contributions and are trying not to touch the account for now.

“My plan is to use this money as supplemental money in retirement to cover healthcare expenses,” he said, “because healthcare expenses in retirement are inherently unpredictable. Having a pot of money there that can be used exclusively for healthcare expenses has a lot of value to me.”

Scot is a self-directed investor who learned about finances from his father. Scot manages the investments in his account himself. But he thinks an HSA is appropriate for less experienced savers and investors, too.

“If you’re just starting out, if you’re younger, the thing to remember is that you’ve got a long period of time to let this money grow,” he said. “The key is that it’s automated, that you don’t have to think about it. You never see this money, and once it’s in there, you can only spend it on things it’s approved for. It’s a terrific way of starting off saving.”

For Scot, the tax benefits are what make an HSA particularly appealing. 

“This is money that’s being taken out of your paycheck before you pay taxes on it. And as long as you use that money in the correct way, you will never pay any taxes on it,” he explained. “I’m sold in terms of this being a vehicle that absolutely fits what I’m trying to do.”

Titi, 46 — Minneapolis, Minnesota

Titi first chose a high-deductible health plan (HDHP) with an HSA in order to minimize health expenses for her young family of four. But she’s had the pleasure of seeing her HSA balance grow to a substantial nest egg over the years. 

“I started out very small, but as my paycheck increased each year, I added a little more,” she said. “We get to see a sizable chunk of money sitting in an account right now. It definitely pays off to do it regularly.” 

Titi and her husband, whose two children are now young adults, carefully consider their finances and HSA contribution every October during open enrollment. 

“We always look at our needs each year and reevaluate what we need to put in,” she said. “If there’s a chance for us to catch up on it, we will. Sometimes we put in a large chunk of money to help us grow that HSA.”

Titi and her husband opened a second HSA four years ago that they use on a day-to-day basis for medical and dental expenses. But they want to let their more mature account continue to grow.

“That is something that we plan to use in retirement,” she said. “Anything we contribute is tax-free. We get to watch it grow tax-free, and then any withdrawals we do in the future will be tax-free. Those are some of the tax benefits we’re looking at.”

Eddie, 28 — Houston, Texas

When Eddie got his first job as a research coordinator at a Houston university in his early 20s, he didn’t know anything about HSAs. 

“On our Day 1 training, the benefits team presented us three different options,” he said. “The one that made the most sense to me was the high-deductible health plan, which luckily for me was tied to the HSA.”

Six years later, at the age of 28, Eddie says he uses his HSA on a regular basis for eligible expenses, such as multivitamins, sunblock, and healthcare appointments. And now that some of his shopping has shifted online because of COVID, he uses Health Shopper, where he can shop specifically for HSA-qualified purchases. 

Eddie appreciates the flexibility of having an HSA, as well as the convenience of making automatic contributions through his employer. 

“You can use the funds almost anywhere for health-related expenses,” he said. “And especially if it’s set up through your employer, you’re contributing without even knowing. It’s constantly building up, and whenever you need it, it’s there for you. That’s the biggest thing for me.”

Having seen the value of his HSA, Eddie has started making an effort to get even more educated about his benefits. He attends webinars and sessions through his employer and reads articles he finds online about using the account as an investment vehicle. And he picked up some valuable tips this year in WEX’s HSA Day.

“With open enrollment just around the corner, it’s something that you’ve got to think about,” he said. “Every year I put some time and effort in to see what is going to be my best option. Time and time again, year after year, my best option has been the HSA.” 

Want to learn more about HSAs? We’ve got you covered: Check out LoveMyHSA.com, our HSA FAQ, HSA fact sheet and a handy savings calculator. The Health Trends & Insights blog is also a wealth of information on HSAs.