Starting Jan. 1, 2011 only prescribed medicines or drugs (including over-the-counter medicines and drugs that are prescribed) and insulin (even if purchased without a prescription) will be considered qualifying medical expenses for HSA Accounts. As a result, you should not use HSA funds to purchase over-the-counter drugs (without a prescription). For more information, visit the IRS online at www.irs.gov.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a special tax-free custodial account created exclusively for the benefit of members covered under a high-deductible health plan (HDHP). The funds in an HSA are used towards qualified medical expenses, and an HSA has the unique potential to offer triple tax savings through:

• Pre-tax or tax-deductible contributions
• Tax-free dividends (interest) earned
• Tax-free distributions when used for qualified medical expenses

To open a Health Savings Account, you must be enrolled in a High Deductible Health Plan (HDHP). A HDHP satisfies specific federal requirements related to deductibles and out-of-pocket expenses. In addition, the federal government establishes maximum contribution limits to the account each year. The chart below details the specifics.

HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services. Consult your company's Benefits Administrator or Human Resources Department to determine if you are covered by a HDHP.

COPFCU HSA Checking Account

The Cincinnati Police Federal Credit Union offers an HSA Checking Account with the following features and benefits:

• The HSA is a High-Yield Checking Account
• The HSA currently pays tiered dividends on balances of $500 or more
• A Free HSA Debit Card is ordered at account opening
• A Free initial order of 50 checks is provided at account opening
• Free Online Banking is available at www.copfcu.com
• Free Bank-by-Phone Service available at (513)352-3561 or Toll-Free at 1-800-810-0221
• Free E-Statements are encouraged
• There is no minimum balance requirement to open the account
• There is no setup fee to open the account
• There is no monthly service fee
• All HSA Funds are federally insured to at least $250,000 by the National Credit Union Administration (NCUA), an agency of the U.S. Government.

HSA Certificates

HSA Certificates allow you to invest the excess funds from your HSA Checking Account. The HSA Certificates feature:

• $1,000 Minimum to open
• Terms from 3 months to 5 years
• Above-market rates & yields (Click here for current rates)
• Penalties will apply for early withdrawal or termination
• All HSA Funds are federally insured to at least $250,000 by the National Credit Union Administration (NCUA), an agency of the U.S. Government.

For more information on Health Savings Accounts (HSAs), review these valuable materials.

All About Health Savings Accounts (HSAs)

For information on pharmacies offering $4 Generic Drugs or Free Antibiotics, see these websites.