Health Savings Account (HSA)

An HSA is a personal savings account you can use to pay for qualified out-of-pocket medical expenses with pretax dollars, now or in the future.

HSA Overview

Once you’re enrolled in the HSA, you’ll receive a debit card to help manage your HSA reimbursements. Your HSA can also be used for your expenses and those of your spouse and dependents, even if they are not covered by the HDHP medical plan.

How a Health Savings Account (HSA) Works
Eligibility
You must be enrolled in the High Deductible Health Plan.
Your contributions
You contribute on a pre-tax basis and can change how much you contribute from each paycheck up to the IRS maximum of $3,550 if you enroll only yourself or $7,100 if you enroll in family coverage. You can make an additional catch-up contribution if you are age 55.

The Company’s contribution

  • $500 for employee only coverage
  • $1,000 for employee + spouse coverage
  • $1,000 for employee + child coverage
  • $1,500 for employee + family coverage
Eligible expenses
Medical, dental, vision and prescription drug expenses incurred by you and your eligible family members. If you want to enroll in a Health Care FSA, you are eligible to enroll in a Limited Purpose FSA.

 

Please note: Funds available for reimbursement are limited to the balance in your HSA.

Using your account
Use the debit card linked to your HSA to cover eligible expenses or pay for expenses out of your own pocket and save your HSA money for future health care expenses.
Your HSA is always yours – no matter what
One of the best features of an HSA is that any money left in your HSA at the end of the year rolls over so you can use it next year or sometime in the future. And if you leave the company or retire, your HSA goes with you and you can continue to pay and save for future eligible health care expenses.

 

The Triple Tax Advantage

HSAs offer you tax advantages like no other:

You can use your HSA funds to cover qualified medical expenses, plus dental and vision expenses too – tax-free.
Unused funds grow and can earn interest over time – tax-free.
You can save your HSA funds to use for your health care when you leave the Company or retire – tax-free.

If you want to pay less per paycheck and save tax-free money for future medical expenses, consider enrolling in the HDHP with HSA.

How the HDHP and HSA Work Together

Yolanda enrolls herself only in the HDHP with HSA. She chooses to use her HSA to pay for covered services – this reduces her out-of-pocket amount needed to meet her deductible before her health plan begins to pay.

Year 1 Example Year 2 Example
The Company deposits $500 in Yolanda’s HSA The Company deposits $500 in Yolanda’s HSA
She contributes $3,100 for a total of $3,600 She contributes $3,100 for a total of $3,600 $2,900 rolls over from last year for a total of $6,500
She uses her HSA to pay $700 of eligible expenses She uses her HSA to pay $1,250 of eligible expenses
She has $2,900 in her HSA to roll over to next year She has $5,250 in her HSA to roll over to next year