What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a great way to help you control your healthcare costs. It works in conjunction with a qualified High Deductible Health Plan (HDHP) to combine tax-free savings earmarked for qualified medical expenses.

An HSA allows you to set aside money to pay for higher deductibles associated with a lower monthly premium HDHP. The money you save in monthly insurance premiums is reserved for eligible medical expenses you incur in the future.

Eligible expenses include things like co-pays and deductibles, prescriptions, vision expenses, dental care, therapy and medical supplies.

Highlights

• Balances roll over from year to year and earn interest along the way.
• Portable – you keep it even after you leave employment.
• Tax advantages – invest money in mutual funds to grow your tax savings for either future healthcare costs or retirement.
• Pay for expenses with a benefits debit card that gives you immediate access to your money at the time of purchase.
• Expenses also can be reimbursed through our online portal, online bill pay directly to your provider or submitting a distribution request form.
• Receipts are not required for reimbursement, but be sure to save them for tax purposes.

Health Plans Must Cover OTC COVID-19 Tests

Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) are laws passed which include requiring group health coverage to cover the costs of over-the counter (OTC) COVID-19 diagnostic tests (up to $12.00). The Department of Labor (DOL) and the Internal Revenue Service (IRS) has provided additional guidance to prevent fraud and abuse, the insurer or plan provider, may require an attestation, the OTC COVID-19 test was purchased by the participant, beneficiary, or enrollee for personal use, not for employment purposes, has not been (and will not be) reimbursed by another source, and is not for resale.

Switching from a Health FSA to an HSA this year?

If you or your spouse is currently enrolled in a health FSA plan, you cannot contribute to an HSA until the Health FSA plan year ends. If the Health FSA plan year ends with a positive balance of $0.01 or more, and the plan has a grace period, you cannot contribute to an HSA until after the grace/rollover period ends.