HSAs: Your Tax-Free Health Account.

Almost too good to be true

There's one part of health insurance that almost feels too good to be true.

A place where:

• your money goes in tax-free
• grows tax-free
• and comes out tax-free (if used for healthcare)

What an HSA actually is

An HSA (Health Savings Account) is a personal account you can use to pay for medical expenses.

But it's not just a spending account. It's also a tax advantage.

Think of it like a hybrid between:

• a checking account (you can use it for expenses)
• an investment account (you can let it grow over time)

The triple tax advantage

HSAs have what's often called a "triple tax advantage":

• Money goes in tax-free — you don't pay taxes on what you contribute
• It grows tax-free — any gains or interest aren't taxed
• It comes out tax-free — as long as you use it for qualified healthcare costs

Who qualifies for an HSA

Not everyone can open an HSA.

To qualify, you need to be enrolled in a high-deductible health plan (HDHP). That's the requirement.

If your plan meets the criteria, you can open an account, contribute each year, and use it for expenses.

No HDHP, no HSA.

What a high-deductible plan really means

A high-deductible plan simply means you pay more upfront before the plan starts covering costs.

That might sound like a downside — but paired with an HSA, it changes the equation.

Because now:

• you're saving on monthly premiums
• AND getting tax advantages through the HSA

How the two work together

Instead of paying more every month for a lower deductible plan, you:

→ Choose a high-deductible plan (lower monthly cost) → Put money into your HSA → Use that HSA money when needed

So instead of paying higher premiums to an insurance company, you're:

A simple way to think about it

Imagine two paths.

Path A: higher monthly premium, lower deductible, less control.

Path B: lower monthly premium, higher deductible, HSA to manage costs.

Path B gives you:

The smarter way people use HSAs

Some people use HSAs just to pay for medical expenses as they come up. That's fine.

But others take it a step further. They contribute regularly, pay small expenses out of pocket, and let the HSA grow over time.

Over the years, it can become a meaningful pool of money specifically for healthcare — almost like:

What you can use it for

HSA funds can be used for a wide range of healthcare expenses, including:

• doctor visits
• prescriptions
• dental and vision
• certain procedures and treatments

Where this fits with Lolly

At Lolly, we offer two HSA-compatible plans.

That means if you choose one of those plans, you're eligible to open and contribute to an HSA — pairing lower monthly costs with tax advantages.

This isn't about pushing one option. It's about giving you a structure that can work better depending on how you think about cost and control.

When an HSA strategy makes sense

HSAs tend to work best if you:

• want to lower your monthly premium
• are comfortable with a higher deductible
• like the idea of setting aside money tax-efficiently
• don't use healthcare heavily every year

The tradeoff (because there is one)

With a high-deductible plan, you take on more upfront responsibility.

But in return:

For some people, that's a great deal. For others, it may not be the right fit.

Bottom line

An HSA isn't just a health account.

It's a financial tool that, when used correctly, can lower your effective healthcare costs and give you more control over how you pay for care.

Paired with the right plan, it turns what usually feels like an expense into something a little more strategic.