Health Savings Account (HSA)

  • What's a health savings account?

    Health savings accounts (HSAs) allow you to set money aside for IRS-approved medical expenses through pre-tax contributions. Think of it as a personal bank account just for healthcare expenses. To contribute to an HSA, you must have a qualified high-deductible health plan (QHDHP).

    What are the benefits of an HSA?

    • HSA contributions are tax-free.
    • Use HSA money to pay copays, deductibles, and coinsurance.
    • HSA money rolls over every year.
    • HSA money never expires - even if you change jobs, health plans, or retire.
    • Invest HSA money in a range of mutual funds, stocks, and bonds.

    Your HSA experience

    An HSA plan helps you save in 3 major ways

    1. Pre-tax funds are deposited from your paycheck
    2. Tax-free withdrawals for eligible healthcare expenses
    3. Tax-free growth from interest earned and any earnings from investments

    2018 HSA contribution limits

    • Deductible minimum that qualifies for an HSA: $1,350 for individual; $2,700 for family
    • Maximum out-of-pocket: $6,550 for individual; $13,300 for family
    • Catch-up contributions: $1,000
    • HSA contribution limit: $3,450 for individual; $6,850 for family

    Are you eligible for an HSA plan?

    This is an IRS rule. You're eligible only if you answer NO to all of these questions:

    • Are you claimed as a tax dependent on another person's taxes?
    • Are you enrolled in Medicare?
    • Have you received any Veterans Affairs health benefits in the last three months?
    • Are you covered by your own or your spouse's flexible spending account (FSA), health reimbursement arrangement (HRA), or a non-HSA health plan? Exceptions: limited-purpose FSA or post-deductible HRA.

    How an HSA plan works

    1. With an HSA plan, preventive services are covered in full. That means that there is no cost to you for preventive exams, screenings, and certain generic prescriptions.
    2. You pay the full cost for non-preventive care and prescriptions until you reach your plan year deductible. After you meet your deductible, you pay a set coinsurance for covered services.
    3. You can use tax-free money from your HSA to pay for qualified medical expenses - both before and after you meet your deductible.
    4. Premera pays 100% of covered services when you meet your out-of-pocket maximum.
    5. Log in to Premera to access your HSA on your account dashboard. On the left, choose Personal Funding Account. This will take you to ConnectYourCare, where you can see your balance.
    6. You can also download the ConnectYourCare mobile app to access your HSA account information.

    For details about your plan's specific benefits, log in to your Premera account and view your preventive benefits list, summary of benefits, and your benefit booklet.