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. This is available to those in Plan IV only.

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

• You can contribute pre-tax and post-tax dollars.
• You can contribute up. to $4,150*/individual and $8,300*/family annually.
• Eligible individuals who are 55 or older by the end of the tax year can increase their contribution limit up to $1,000 a year. This extra amount is the catch-up contribution allowed for HSAs.
• Unused funds roll over from year to year.
• Your HSA stays with you even if you switch employers, change health plans or retire.
• If you have an HSA somewhere else, you can transfer the balance to your new HSA.
• Your money can earn interest – plus, you can enjoy investment options.