Health Savings Account
Health Savings Accounts (HSA) are similar to Flexible Spending Accounts. Employees have the opportunity to contribute pre-tax dollars to an account to use for qualified medical expenses. Employees who wish to participate in a HSA must be enrolled in a high deductible health plan, such as BlueEdge High Deductible, cannot be enrolled in Medicare, cannot be claimed as a dependent on another person's tax return, and cannot be enrolled in any other non-qualified medical plan.
HSA's are not use-it-or-lose-it plans. The contributions you make to the account rollover year to year and are yours to take with you if you leave the University. The HSA is not pre-funded. You use what is available in the account after it has been deposited. HSA participants can use the funds beyond medical expenses for such items as COBRA premiums, long-term care insurance and Medicare insurance premiums including A, B, C, and D products.
Management of your HSA is your responsibility. You must first open your account before funds may be deposited (including any employer contributions) or withdrawn to pay for qualified medical expenses. You will receive a Welcome Kit in the mail or a link to open your account electronically. For either method, there are a few forms requiring personal information; this information is required by federal banking regulations under the Patriot Act, just as it would be required to open a traditional banking account. Look for the form titled "Master Signature Card" in your kit or online. Even if you electronically provide your signature to open your account, you should mail in this card. It gives you the ability to designate a beneficiary for your account. You can use your debit card, administered by BenefitWallet, to pay for eligible expenses or you can reimburse yourself by writing a check from the account.
There are fees associated with your HSA account. When you access your account online, you will be directed to your homepage which includes forms and resources, including a fee schedule. Please review the fee schedule associated with your account.
Employees who wish to participate in a Health Savings Account must be enrolled in a high deductible health plan such as BlueEdge High Deductible, cannot be enollred in Medicare, cannot be claimed as a dependent on another person’s tax return, and cannot be enrolled in any other non-qualified medical plan.
For the 2015 tax year, the maximum contribution is $3,350 for individuals and $6,650 for family. For the 2016 tax year, the maximum contribution is $3,350 for individuals and $6,750 for family. You may also have an opportunity to make a $1,000 catch up contribution if you are age 55 or older.