A Health Savings Account (HSA) is a special type of bank account designed to help employees to set aside pre-tax dollars to pay for out of pocket medical, dental and vision expenses. Employees can change how much they contribute throughout the year. Unused funds carry over from year to year and are portable.
- Must be enrolled in a Qualified High Deductible Health Plan and cannot be covered by any other non-HDHP plan
- You cannot establish an HSA if you or your spouse also have a medical FSA, unless it is a Limited Purpose FSA.
- You cannot be enrolled in Medicare or Tricare due to age or disability.
- If age 65 or older and:
- enrolled in Medicare A or B – not eligible to contribute
- declined Medicare A and B – can contribute, speak to a Medicare expert for more information
- You cannot set up an HSA if you have insurance coverage under another plan, for example your spouse’s employer, unless that secondary coverage is also a qualified high deductible health plan.
- You cannot be claimed as a dependent under someone else’s tax return.
- Hood employees can elect to have pre-tax contributions made to a personal account with our HSA provider, Optum Bank. Health Equity charges a $2.00/month admin fee that is automatically deducted from your account each month.
- Note: employees can elect to have an HSA with any provider, but these contributions would be made post-tax and employees can take the tax benefit with their annual tax filing.
- Single: $3,850
- Family: $7,750
- Catch up contribution for employees over age 55 are allowed to make an extra contribution of $1000 each year