Savings

Health Savings Account

A Health Savings Account (HSA) gives you more flexibility and control over your health care costs because it empowers you to make your own health care decisions.

  • Use pre-tax dollars to pay for future medical expenses

    • Contributions to your HSA are tax deductible.
    • The account earnings will accumulate on a tax-deferred basis.
    • Your employer's contributions are also tax-free.
    • Distributions from your HSA are tax-free as long as they are used for qualified medical expenses.
  • Opening your HSA is very simple

    • To open an HSA, you must select a high-deductible health plan.
    • The deductible must be at least $1,000 for an individual plan and at least $2,000 for a family plan. The major advantage of a high-deductible plan is lower premiums.
  • Contributing to your HSA is also very simple

    • The maximum annual HSA contribution is the deductible under your high-deductible health plan.
    • But the contribution cannot exceed $2,650 for an individual plan or $5,250 for a family plan.
  • Your HSA offers protection from catastrophic medical costs

    • To be coordinated with an HSA, the high deductible health plan cannot have out-of-pocket limits which exceed $5,100 for an individual plan or $10,200 for a family plan.
    • The high-deductible health plan provides you protection from catastrophic medical costs, and the HSA provides you with a source of funds to pay some or all of the costs not covered by the health plan (i.e. deductibles).
  • Your HSA account balance is carried over.

    • Unlike contributions to a flexible spending account, the balance of your HSA at the end of the year is carried over to the next year.
    • Because your balance is carried over - you won't be placed in a position of having to "use it or lose it" each year.
  • Your HSA offers control and flexibility

    • Since you are the owner of your HSA, it doesn't matter what your job status is or whether your employer makes contributions to your plan - it's still yours.
    • It will always follow you.

Health Savings Account - Benefit Summary

  • Protection. Your HSA will protect you from incurring large amounts of debt from high and/or unexpected medical bills.
  • Affordable. High health insurance policy deductibles mean lower premiums.
  • Savings. Your ability to deduct your contributions, and the tax deferral of account earnings, enable you to build the balance in your account.
  • Flexible. You can contribute at any time during the year and your balance will roll over from year to year.
  • Portable. You own the account so, regardless of any changes, it will go with you wherever you decide to go!

Ask a Member Service Representative for more information about our Health Savings Accounts.