GETTING TO KNOW YOUR HEALTH SAVINGS ACCOUNT

EVERYTHING YOU NEED TO KNOW ABOUT YOUR HSA

When you enroll in one of the Consumer Directed plans, you can also enroll in a tax-free HSA through Optum.

Did you know when you make pretax contributions to your HSA, you can use these funds to pay for qualified medical expenses incurred once your account is opened and in the future.

HOW DOES MY HSA GROW?

PROTECT AND PLAN FOR YOUR FUTURE

HSAs offer triple tax saving through your payroll contributions, any interest and earning as well as the money withdrawn. Each of these savings are not taxed if it's used for qualified medical expenses. (For a complete list of qualified medical expenses, visit here. Your HSA balance grows in three ways:

  • HSA Company Contributions: In 2020 you may be eligible for employer contributions when you complete required wellness goals
  • Your contributions: In 2020 you can contribute up to $3,550 (Employee coverage) or $7,100 (other coverage) on a pretax basis. Plus, if you're age 55 or older in 2020, you also can contribute an additional $1,000 over and above the limit!
  • Earnings and interest: Your money can be invested tax-free, much like your 401(k) account – giving you another way to grow your funds.

Visit Optum www.optumbank for details.

WHAT ARE THE KEY FEATURES OF THE HSA?

There are several features that make the HSA a unique tool for saving on healthcare costs:

  • Use it or lose it! Unused HSA contributions roll over from year to year, allowing you to accumulate funds for future medical expenses. And you can enhance your HSA savings by making smart, cost-effective health care decisions – like seeing a network doctor or using generic prescription drugs. Not only will these decisions reduce your out-of-pocket expenses, but they allow your HSA savings to accumulate for the day you or a family member needs more costly health care.
  • You own the funds in your HSA. Even if you change medical plans, retire or change jobs, you can take your HSA with you and continue to withdraw funds tax-free for qualified medical expenses.
  • Your HSA can be used for dental and vision expenses. Your funds don't have to be used for just medical expenses ‒ they can also help reduce your dental and/or vision care expenses.

HOW DO I USE MY HSA?


MONEY GOES IN

  • Your pre-tax contributions, combined with HSA Company Contributions, go into the account. Up to $3,550 annually for employee-only coverage and $7,100 annually for other coverage levels
  • You can contribute an additional $1,000 annually if you will be 55 or older anytime during the year
  • Remember, you can change your contribution rate at any time throughout the year
 
 

MONEY COMES OUT

  • You can use your HSA to pay for any eligible expenses. To pay you can use your HSA debit card
  • If you're paying for services out-of-pocket you can reimburse yourself by going online or using the convenient mobile app
  • If there's not enough money in your HSA to cover an expense, you can pay it now and reimburse yourself later

MONEY STAYS WITH YOU

  • Any money left in your HSA will roll over into the next year and is yours to pay for future medical expenses
  •  If you change medical plans, retire or change jobs, your HSA stays with you
  • Using your HSA is easy, and can help you save on healthcare costs – now and in the future
 
 
 

SHOULD I KEEP MY HSA RECEIPTS?

Yes – you are responsible for using your HSA funds only for qualified medical expenses. You should keep any and all documentation, including payment receipts, to substantiate your purchases and avoid possible tax consequences.

For a complete list of qualified medical expenses, visit here.