Need more information on Health Savings Accounts?
Would you like to lower your insurance costs and save tax-free funds for future medical and retirement costs? If so, a plan which combines a high deductible health plan (HDHP) with a separate savings account, called a Health Savings Account (HSA), might be the right plan for you.
The HDHP gives you comprehensive coverage for unexpected or large expenses. The HSA lets you set aside tax-deductible, interest-earning funds to help offset your deductible and other qualified medical expenses. Once you meet the health plan deductible, the plan starts paying for your covered medical expenses according to your coinsurance percentages.
You can roll over any funds in the HSA that you do not use during the benefits period and save them for future medical expenses. The HSA is completely portable. It stays with you even if you change jobs or insurance coverage.
You can make tax-free withdrawals from your account if you use the money for qualified medical expenses. As the account holder, you are responsible for deciding how to use your HSA funds and meeting all IRS requirements.
You are eligible for an HSA if:
* Exceptions apply for certain types of limited insurance and supplemental coverage.
How do you take advantage of the HDHP with HSA? First, enroll in the HDHP plan your employer is offering. Then, set up your HSA with a qualified bank or financial institution. You can either use a bank of your choice or allow BlueCross' trustee to administer your HSA. As long as you maintain the eligibility requirements listed above, you can deposit funds into your HSA. The IRS sets a maximum annual limit you can contribute. Your family, friends or employer can also make contributions to the HSA on your behalf.
Does HSA Bank administer your Health Savings Account? If so, you can manage your HSA and pay claims online with My Health Toolkit®. On behalf of BlueCross, HSA Bank administers some health savings accounts. HSA Bank is an independent company.
To find out if Blue Health FundSM is an option for you, check your benefit booklet or contact the benefits coordinator in your company's Human Resources department.