HSA Account Holders

Helping families manage healthcare costs.

Opening a Mercantile Bank HSA is a great first step for families and individuals seeking to control their own personal healthcare costs. Explore the many financial benefits you will realize when you open an HSA from Mercantile Bank.

Mercantile Bank HSA Products

HSA Checking Account: A checking/transactional account with tiered interest rates.

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HSA Certificate of Deposit: A long-term savings option for those with less need for liquidity.

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HSA Investment Account: Through a strategic partnership with Devenir, the national leader in HSA investment options, Mercantile Bank of Michigan is offering its HSA account holders the option of investing in several "best in class" mutual funds. The funds cover a variety of nationally recognized fund families and asset classes and are self-managed by the HSA accountholder.*

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*Investment options are not FDIC insured, may lose value, and are not guaranteed by the Bank.

Maximum Contribution

  2020 2021
Individual $3,550 $3,600
Family $7,100 $7,200
Catch-Up Contribution $1,000 $1,000
  • A Health Savings Account (HSA) delivers added benefit to employees with an existing qualified high-deductible health insurance plan. Employees can use their HSA to support costs not covered by an existing employer-administered insurance plan. Prescriptions, co-pays and deductibles are just some of the eligible expenses that a Mercantile Bank HSA can help.

    • A Mercantile Bank HSA combines a bank account with a High Deductible Health Plan (HDHP) featuring an annual deductible.
    • The HDHP covers catastrophic illness and injury claims for individuals and their families.
    • The HSA is used to cover routine expenses until the deductible is met.
    • Both individuals and employers may contribute money to an HSA.
    • Balance of the account grows tax-deferred from year to year.
    • HSAs are fully portable and can move from job to job.
  • Anyone who is:

    • Covered by a high-deductible health insurance plan
    • Not covered under another health insurance plan
    • Not enrolled in Medicaid
    • Not being claimed as another person's dependent

    If you meet all the criteria above, we encourage you to Open an HSA Account or to contact a Mercantile Bank HSA specialist to get your questions answered so you can begin to experience the benefits of a Mercantile Bank HSA.

  • The many benefits of administering your own HSA make it the right choice for so many different people and scenarios. While every situation is unique, the following represent some of the key benefits associated with a Mercantile Bank HSA.

    • Ease of Contributions: Contributions can be made via direct deposit from your paycheck, making a contribution in person at any Mercantile Bank location, using our online banking tools to either deposit a check or make a transfer from another Mercantile account or by initiating an electronic transfer using Mercantile's online banking from your bank account.
    • Ease of Withdrawals: Mercantile Bank HSA account holders receive a Mercantile Bank HSA debit card that can be used to cover eligible expenses from your healthcare provider just like traditional debit cards. Providers can swipe the card and the total of the eligible expenses are automatically deducted from your account. No transfers and no balancing accounts.
    • Ownership of Account: Unlike "Flex" accounts that are funded yearly and operate under a "use it or lose it" scenario, HSAs and the accumulated balance of funds remain the property of the employee and continually "roll over" every year without penalty or risk of loss. This way, HSA customers can increase the account balance by earning interest on funds that are not applied to a qualified medical expense.
    • Build on the Value of Your Account: Mercantile Bank HSAs provide some of the most competitive interest rates available.
    • Tax Advantages Abound: Contributions made to your HSA are 100% tax deductible just like an IRA (up to the legal limit). If your employer offers payroll deductions, you can make contributions to your account in pre-tax dollars when the allocated deduction is removed prior to taxes being applied. Contributions can also be made as an above-the-line deduction that allows you to reduce your taxable income by the amount you pay into your HSA saving you money every pay period. Please consult with your tax advisor regarding the tax benefits of Health Savings Accounts.
    • Going Mobile: Because you own your HSA plan, it follows you everywhere. Whether you are making a career change, moving to another state, or temporarily find yourself between jobs, the money in your HSA is yours to keep and apply toward all approved out-of-pocket healthcare costs you may incur.
    • Future Benefits: Even as you age and consider retirement, your HSA will deliver big dividends. HSA funds can be used toward qualified long-term care premiums as well as Medicare premiums and out-of-pocket expenses. Your funds can even be accessed to cover future living expenses after the age of 65 (taxed at your future income tax rates.)
  • Funds that are withdrawn to pay costs not covered by a high-deductible insurance plan can be accessed tax free for the qualified medical expenses listed below. Funds withdrawn to cover costs not associated with qualified medical expenses are subject to taxes at your current tax rate and an additional 20% tax penalty.

    Examples of eligible medical expenses

    (potentially covered by HSA funds)

    • Acupuncture
    • Alcoholism treatment
    • Ambulance
    • Artificial limb
    • Artificial teeth
    • Breast reconstruction surgery (mastectomy-related)
    • Chiropractor
    • Contact lenses and solutions
    • Cosmetic surgery (if due to trauma or disease)
    • Dental treatment (X-rays, fillings, braces, extractions, etc.)
    • Diagnostic devices (such as blood sugar test kits for diabetics)
    • Doctor´s office (including physicians, surgeons, specialists or other medical practitioners) visits and procedures
    • Drug addiction treatment
    • Drugs, prescription
    • Eyeglasses and exams (for medical reasons)
    • Eye surgery (such as laser eye surgery or radial keratotomy)
    • Fertility enhancements
    • Hearing aids (and batteries for use)
    • Hospital services
    • Laboratory fees
    • Long-term care (medical expenses and premiums)
    • Nursing home
    • Nursing services
    • Operations/surgery (excluding unnecessary cosmetic surgery)
    • Osteopath
    • Physical therapy
    • Psychiatric care
    • Psychologist
    • Special education (for learning disabilities)
    • Speech therapy
    • Stop-smoking programs (including nicotine gum or patches)
    • Vasectomy
    • Weight-loss program (to treat a specific disease diagnosed by a physician)
    • Wheelchair

    Ineligible medical expenses

    (not covered by an HSA and subject to taxation plus 20% tax penalty)

    • Advance payment for future medical care
    • Amounts reimbursed from any other source (such as other health coverage or a Flexible Spending Account)
    • Babysitting, child care and nursing services for a normal, healthy baby
    • Betting (including lottery, gaming, chips, or track wagers)
    • Cosmetic surgery (unless due to trauma or disease)
    • Diaper service
    • Electrolysis or hair removal
    • Funeral expenses
    • Gasoline
    • Health club dues
    • Household help
    • Illegal operations and treatments
    • Maternity clothes
    • Meals
    • Nutritional supplements
    • Over-the-counter drugs and medicines other than those used exclusively for medical purposes
    • Personal use items (such as a toothbrush or toothpaste)
    • Swimming lessons
    • Teeth whitening
    • Weight-loss program (unless prescribed to treat a specific disease)
  • A Mercantile Bank HSA can easily be set up either by visiting a Mercantile Bank location or by contacting one of our HSA specialists who would be happy to walk you through the account opening process.

  • HSA contributions can be made using one of the following options:

    • Direct deposit from your paycheck.
    • Making a contribution in person at any Mercantile Bank location.
    • Using our online banking tools to either deposit a check or make a transfer from another Mercantile account.
    • Initiate an electronic transfer using Mercantile's online banking from your bank account. The electronic deposit could be in your account as soon as the following business day.
  • Mercantile Bank HSA holders use a bank-issued HSA Debit Card to cover qualified healthcare expenses. Used like a regular debit card, the HSA Debit Card is accepted almost anywhere and provides an electronic record of your transaction for tax purposes.

  • Mercantile Bank pays competitive rates on the balance in your HSA to help make your money work as hard as you do. Mercantile offers a HSA Certificate of Deposit (CD) to help your balance grow as a tax-deferred investment that rolls over year to year regardless of your workplace or insurance status.

    Through a partnership with Devenir Investment Advisors, LLC, Mercantile Bank is also able to offer its HSA holders the option of investing in several "best in class" mutual funds designed to grow your HSA dollars for longer-term medical needs and retirement.*

    *Investment options are not FDIC insured, may lose value, and are not guaranteed by the Bank.

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Have you read up on Mercantile's HSA and are ready to start saving now? Click below to begin the enrollment process.

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