7 things all women need to know about their HSA

Women, we have a lot on our plates. There's the day-to-day tasks of running our careers and/or households, plus the second shift work of caring for our families, communities, pets, and more. These days it seems like one expense after the other, and healthcare is no exception.

What's the situation?

Women spend more than men on healthcare. In fact, healthcare costs for women are 18% higher than for men. Yet, according to the Census Bureau, women are more likely to have no retirement savings. And in a recent survey of HealthEquity clients, women were less likely to have an HSA and less likely to invest their HSA funds.

This is why it is important for women to understand how Health Savings Accounts can help manage their health and financial wellbeing. Here are 7 things women should know about their HSA.

First, what are the benefits of an HSA?

A Health Savings Account (HSA) is a tax-advantaged account that allows you to set aside pre-tax money for qualified medical expenses. HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. HSAs provide support in helping you manage a wide range of healthcare issues.

1. Use your HSA to help offset rising healthcare costs

Healthcare costs continue to rise year over year, and women bear a disproportionate share of that burden. From routine check-ups to preventive screenings, your HSA can help you cover these costs with pre-tax dollars, giving you more purchasing power when it comes to your health.

2. Take care of your reproductive health

Your HSA can be used for a wide variety of reproductive health expenses, including contraceptives, prenatal vitamins, fertility treatments, and feminine care products. Check the full list of qualified medical expenses to see everything your HSA covers.

3. Cover costs associated with family planning.

Whether you are planning for a family or choosing not to, your HSA has you covered. From fertility treatments and prenatal care to postpartum recovery, your HSA funds can help you plan for the future on your terms.

4. Get ahead with your retirement

With the recent passage of the Secure 2.0 Act of 2022, there are even more ways to save for retirement. Your HSA can serve as a nest-egg for healthcare in retirement. After age 65, you can use HSA funds for any purpose (not just medical), though non-medical withdrawals are taxed as income.

5. Cover travel-related healthcare expenses

Did you know you can use your HSA to cover medical mileage? The IRS allows you to deduct the standard mileage rate for trips to medical appointments, with the rate continuing in 2023. You can also use your HSA for lodging when traveling for medical care.

6. Create a healthcare emergency safety net

Life is unpredictable, and medical emergencies don't come with advance notice. By building up your HSA balance over time, you create a dedicated emergency fund for unexpected healthcare costs — from urgent care visits to unexpected surgeries.

7. Use your investing power to raise your earning potential

Studies show that women tend to be better investors than men. In fact, according to a recent Forbes study, women outperform men in investing by about 0.4% annually. Use this advantage and decide how you'll invest in your HSA this year.

Feel empowered for the future

Your HSA is one of the most powerful financial tools available to you. Whether you're saving for everyday healthcare expenses, planning for a family, or building a retirement nest egg, your HSA is there to support you every step of the way.