Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-advantaged savings account that allows you to set aside money on a pre-tax basis for out-of-pocket qualified medical expenses incurred once the account is open. This account offers triple tax savings by allowing pre-tax contributions, tax-free interest and investment earnings, as well as tax-free distributions when used for qualified medical expenses.
To contribute to an HSA, you must be enrolled in the YOUR HSA-Eligible Plan and meet the following IRS eligibility criteria:
- Employee is not covered by any other health plan, including spousal health insurance, except for that the IRS permits.
- Employee cannot be enrolled in any part of Medicare, Tricare, Medicaid or state health care programs.
- Employee cannot elect or be covered by another person’s Health Care Flexible Spending Account or Health Reimbursements Arrangement for 2020.
- Employee will not be claimed as a dependent on another person’s tax return for 2020.
- Employee has not received Veteran’s Administration health benefits in the past 90 days. Only preventative, dental and vision is permitted.
- Covered Expenses
You may use your HSA to pay for qualified medical, dental, and vision expenses. A complete list of qualified expenses can be found in IRS Publication 502.
When you enroll in an HSA, your HSA administrator will send you an HSA card to use at point-of-sale, but you also have the option to request a reimbursement online.
The CARES (Coronavirus Aid Relief and Economic Security) Act, passed by Congress, has expanded covered expenses that you may use your HSA on. The act is retroactive as of 1/1/2020. Qualified expenses now include: over-the-counter medicine without needing a doctor’s prescription and all feminine hygiene products.
The maximum amount that you may contribute to your HSA is dependent on your health plan coverage:
- Single Coverage - $3,550 per plan year
- Coverage Including Dependents - $7,100 per plan year
Employees age 55 or older, may contribute an additional $1,000 to their HSA in 2020.
- You may change your HSA annual contribution election at any point throughout the year by filling out the HSA Contribution Form; no qualifying event is needed.
- Unused funds in your account at the end of the year will roll over to the next year.
- University-Funded HSA
Eligible full-time faculty, staff, earning less than $60,000 (salary band 1) and residents and fellows will receive a one-time $200 (for single) or $400 (for all coverage levels other than single) contribution to their HSA from the University. This amount will be prorated for those that enroll after January 1.
Employees must enroll in the YOUR HSA-Eligible Plan and certify their HSA eligibility on HRMS or by using the HSA Certification form to receive funds.
- HSA Administrator
Reminder: If you change your address, you will need to update your address within the HSA Bank Member Portal by following the path Profile > Update Profile > Update the address > Submit.
Address Changes: If you change your address, you will need to update your address on HRMS and the change will be sent to Payflex on your behalf.