HSA Member Education
A Health Savings Account is a bank account tied to a High Deductible Health Plan (HDHP). An HSA enables employees to pay for current health expenses and save for future qualified medical expenses on a tax-free basis. In many cases, employees are allowed to contribute to an HAS, and their employers may also make pre-tax contributions.
Check out this video to better understand the details of your HSA:
Who is Eligible for a Health Savings Account?
Employees are eligible to open an HSA if they are:
- Covered by a HSA-qualified medical plan.
- Not covered under any other health plan that is not a qualified (including a plan your spouse may have where he/she has selected family coverage.)
- Not enrolled in an FSA (unless limited benefit) or an HRA.
- Not enrolled in Medicare Part A or Part B or Medicaid, Tricare (Military Health System)
- Have not used your VA Benefits at any time during the previous three months
- Not eligible to be claimed as a dependent (child) on another’s tax return.
What is a Qualified Medical Expense?
Qualified
- Prescription Drugs
- Physician/Vision/Dental Visits
- Physical/Chiropractic Services
- Birth Control
- Durable Medical Equipment
- Over the Counter Medications (no longer require a prescription)
Not Qualified
- Cosmetic Surgery
- Health Club Dues
- Illegal Operations or Treatment
- Maternity Clothing
- Toothpaste, Toiletries, Cosmetics
Please note that under the IRS rules for Health Savings Accounts, many additional expenses are HSA-qualified but are not covered by medical plans.
If you have questions regarding your employer’s Health Savings Account option, please contact your dedicated Benefit Guardian.
2022 HSA Contribution Limits
In Notice 2020-84, the IRS announced 2022 Limits for HSAs and High-Deductible Health Plans. To view the new limits, click below.
