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WHAT IS A HEALTH SAVINGS ACCOUNT?
A Health Savings Account, commonly known as an “HSA,” is an individual account you can open, add money to, and spend on eligible healthcare expenses. If you elected the high deductible health plan, you are eligible for an HSA.
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SETTING UP YOUR HSA
Once you set up your HSA, any payroll deductions you have elected may begin. It is important to get your HSA set up as quickly as possible because you cannot turn in expenses incurred before the account was set up.
ADDING MONEY
The government sets the annual dollar maximum that can be contributed to an HSA depending on the level of coverage you have under your health insurance. Coverage of two or more people is considered family coverage. People who are age 55 or older can make additional catch-up contributions.
USING HSA MONEY
You decide when to spend money from your HSA. If you pay out of pocket for an eligible medical expense, you can choose to not reimburse yourself and let the money in your HSA build up or you can reimburse yourself for the expense from your HSA.
If you use your HSA money for expenses that are not eligible, you will pay a 20% penalty plus income tax on the amount. Once you turn age 65, you may use your HSA money for any expense, medical or not, but you will pay income taxes on those non-medical expenses. To view the full list of eligible expenses, visit www.irs.gov/publications and refer to Publication 969.
HSA Maximum 2023 Contribution Limits
Note: It is your responsibility to familiarize yourself with IRS regulations on HSAs and maintain records of all transactions pertaining to your HSA for audit purposes.
ELIGIBLE EXPENSES
The money in your HSA must be used for eligible medical, dental, vision, and prescription drug expenses. In general, eligible expenses are those that qualify toward the deductibles, copays, and coinsurance with your health plan. If you use money for a dental, vision or medical expense that is not covered by the medical plan, it is important you understand your medical plan deductible still needs to be met if an expense is incurred.
Flexibility
- You own 100% of the deposited funds, meaning if you change employers or retire, you do not lose the money in the accounts regardless of whether you contributed the money or if it was an employer contribution.
Flexibility
- You can choose whether to spend the money on current medical expenses or you can save your money for future use.
- Any unused funds will automatically roll over to the following year as there is no “use it or lose it” provision.
Tax Savings
- Contributions are tax free (pre-tax through payroll deductions or tax deductible).
- Earnings are tax free.
- Funds withdrawn for eligible medical expenses are tax free.
Questions?
Please send all replies to [email protected] If you would prefer assistance by phone you may call (866) 988-2006 to speak with our Broker/Employer Support Team from 7 AM to 6 PM CST.
If you have further questions please send all replies to [email protected] If you would prefer assistance by phone you may call (866) 988-2006 to speak with our Broker/Employer Support Team from 7 AM to 6 PM CST.
Optum Bank informational HSA PDFs and videos are found online at openenrollment123.com. Once on the website: select the “HSA” option and then select the “employee” option. You can then scroll down to view informational videos and PDFS by expanding the Choosing option or the Additional Tools and Resources option regarding an employee having an HSA here at Optum Bank.
