Health Savings Account
Health Savings Accounts (HSAs) for HealthChoice HDHP members allow you to save money for HSA-eligible expenses, and they give you the ability to take greater control of your own health care costs. An HSA allows you to have pretax HSA contributions withheld from your paycheck.
NOTE: A member cannot contribute to both an HSA and the Section 125 Medical Reimbursement Account. A member can contribute to an HSA and the Section 125 Dependent Care Account.
Eligibility - Employees can contribute to an HSA if they:
- Are enrolled in the HealthChoice High Deductible Health Plan
- Are not covered by any other type of health plan, including Medicare
- Are not claimed as a dependent on another person's tax return
Triple tax savings advantage - When coupled with your Section 125 plan, the HSA allows you a triple tax advantage:
- Pretax contributions
- Tax-free interest accumulation
- Tax-free distributions for qualified medical expenses
HSA card - Use your HSA card to pay for eligible expenses instead of paying out of pocket.
- Direct access to funds
- Eliminate distribution wait time
- Accepted at doctor's offices, retailers and pharmacies
Online account access:
- Distributions can be requested online either before or after an incurred expense
- Distributions can be received via check by mail or by direct deposit
Maximum annual contribution amount:
- 2020 contribution limits are $3,550 for single plans and $7,100 for family plans
- 2021 contribution limits are $3,600 for single plans and $7,200 for family plans
Catch-up contribution:
- Individuals age 55 or up may make an additional, annual contribution to their HSAs in the amount of $1,000
HSA Rollover:
- Unused funds roll over year to year, so you will not lose any money you didn't use
