Health Savings Account
A Health Savings Account (HSA) is a tax-free account used to pay for out-of-pocket medical expenses. These include your deductible, coinsurance, and other expenses not covered by the health plan. Reduce your taxes and grow your retirement! A health savings account (HSA) is a smart way to lower your cost for health care because the money in your account is not taxed when you save it, or when you use it to pay for eligible health care expenses.
Who is eligible?
Full-Time Employees enrolled in Medical Plan 1: HDHP with HSA
Important note:
• You are only eligible to contribute if you are not claimed as a dependent on someone else’s tax return.
• You are NOT eligible to enroll in the HDHP if you are enrolled in Medicare or TRICARE.
• You cannot be enrolled in Medical Plan 1: HDHP 6 months prior to enrolling in Medicare. Medicare has a 6 month look back.
Save money on taxes, grow your retirement! A health savings account (HSA) is a smart way to lower your actual cost for health care – now and throughout your life. That’ s because the money in your account is not taxed when you save it, and not taxed when you use it to pay for eligible health care expenses.
How It Works
When you enroll in Medical Plan 1: HDHP, an HSA is automatically opened in your name at Optum Financial, Samuel’s HSA administrator.
You can decide how much money to contribute to your HSA through pre-tax payroll deduction. You can contribute up to the IRS annual limit from all sources combined.
Samuel will contribute to your HSA each plan year. You will receive half in January and half in July, up to $1,000 annually ($500 for singles, $750 for employees + 1 and $1,000 for families).
Your HSA balance is always yours to keep, even if you change medical plans, leave Samuel, or retire.
What You Need to Know
You own the account. As the owner, you determine when you want to spend the funds.
You never lose the funds. Once funds have been deposited into your account, they are yours to keep. There is no ‘use-or-lose’ provision. You even keep the funds if your employment ends.
Tax-free savings for medical expenses. An HSA is the only account to provide a triple-tax benefit. Funds are deposited into the HSA tax free, grow tax-deferred, and remain tax free when used for eligible medical expenses. Remember, if you use your HSA to pay for ineligible expenses before age 65, you will be taxed on those amounts and will be subject to an additional 20% penalty tax.
Funds grow. Funds in an HSA earn interest and can be invested.
Use Your Money When You Need It
When you have an eligible health care expense during the year, you can use your Optum HSA debit card, and the money comes right out of your account. Eligible expenses include medical, prescription drugs, dental and vision costs. You can find a complete list by logging into your Optum account or by reviewing IRS Publication 502.
Visit Financial Products & Health Savings Accounts from Optum Bank to access your account.
Or contact: 800-791-9361
Optum Bank Health Savings Account: Beneficiaries form