Why a Personal Wellness Account Might be Better for You than an HSA
When it comes to healthcare, financial planning is just as important as medical planning. Many people opt for a Health Savings Account (HSA) to cater to their medical expenses at a lower cost. But, a Personal Wellness Account (PWA) is a great alternative. Let’s explore the reasons why a PWA might be a better option for you.
What is a Personal Wellness Account?
A PWA is specifically designed to cater to your health and wellness expenses. This could include expenditures like gym memberships, nutritionist consults, acupuncture, and more. PWAs are employee benefits that can be provided by your employer.
Wellness-Specific Benefits
PWAs differ from HSAs because they offer wellness-specific benefits. HSAs are designed to cater only to healthcare and medical expenses. Some expenses, such as alternative medicine or supplement costs, cannot be covered using HSA funds. On the other hand, PWAs can provide coverage for these expenses, making it a more comprehensive option.
Unused Funds Roll Over
In a PWA, unused funds roll over, which is different from an HSA. At the end of each year, your unutilized PWA funds will remain in your account and accrue interest. This makes it an attractive option for those who want to save for long-term health goals.
Lower Premiums and Deductibles
In a PWA, you can avail of lower premiums and deductibles. Since PWAs have an additional focus on wellness, your premiums and deductibles will be adjusted accordingly, offering more favorable rates.
The Bottom Line
PWAs are a great alternative to HSAs. They provide wellness-specific benefits, allow for unused funds to roll over, and often have lower premiums and deductibles. Before making a decision, it is always best to consider your individual needs and speak with a financial advisor.
