Health savings account

​A health savings account (HSA) is an employee-owned account that can be used to pay for qualified healthcare expenses, including the annual HDHP deductible, copayments, and more.

​How it works

  • You decide how much to contribute to your HSA for the coming year, subject to IRS limits:
    • $3,500 if enrolled for Member-only coverage*
    • $7,000 if covering any family members*
  • Your employer may make contributions to your HSA on your behalf. Both your contribution and any made by your employer count toward the annual contribution limit set by the IRS.
  • The amount elected will be deducted on a pretax basis from your paycheck in equal amounts and credited to your HSA over the course of the year.
  • HSA contributions become available for use as they are deposited in your account.
  • You receive a healthcare debit card as a convenient way to pay for eligible expenses (see below).
  • When you have an eligible expense, you decide whether to
    • use HSA funds to pay for the expense; or
    • pay for the expense out of pocket and allow the HSA balance to grow.
  • The HSA earns interest tax-free and also may be invested when the account balance reaches $1,000. Withdrawals for eligible expenses are also tax-free.
  • Unused HSA funds roll over from one year to the next with no limits.
  • The HSA is fully portable, so it goes with you if you change medical plans, start a new job, or retire.

*The IRS limits for 2020 are $3,550 if enrolled for Member-only coverage and $7,100 if covering any family members.

Eligible expenses

You may use your HSA funds for your own qualified healthcare expenses or for qualified expenses for any family member that you can claim as a dependent for tax purposes. The family member does not need to be enrolled in the Medical Plan.

Qualified expenses are the medical, dental, and vision expenses that can be claimed as a tax deduction. Examples include, but are not limited to, deductible and copayment amounts, dental or orthodontia treatment not covered by the Dental Plan, and prescription drugs. Eligible expenses are outlined in IRS Publication 502 (Medical and Dental Expenses).