The Affordable Care Act did make some changes to Health Savings Accounts – also called HSAs – and how they will work:
- First, the law eliminated one’s ability to use money in their HSA account to buy over-the-counter drugs.
- The second big change is that the law increased the penalty for withdrawing funds from your HSA before you reach age 65. The early withdrawal penalty increased from 10% to 20%.
HSA-compatible plans are available for purchase through public and private exchanges (private only available during the annual Open Enrollment period) such as the REALTORS® Insurance Marketplace.