Health Savings Account (HSA)

  • Premera's qualified, high-deductible health plans with a health savings account (HSA) offer your clients great basic coverage and a chance to save money and invest it for future IRS-approved medical expenses. Helping people choose an HSA-qualified health plan also allows your clients to reduce their taxable income. In addition, employers can expect lower monthly rates because of the higher annual plan deductibles. We make it easy to enroll in and to manage both the health plan and the savings account. 

    An HSA plan helps members save in 3 major ways

    1. Contributions are 100% tax deductible
    2. Tax-free withdrawals for eligible healthcare expenses
    3. Tax-free growth from interest earned and any earnings from investments

    HSA benefits for members

    • HSA funds are owned by the member, so the money never expires - even if they change jobs, health plans, or retire
    • HSA funds can be invested in a variety of mutual funds with no transaction fees
    • Unused HSA funds accrue interest over time
    • Members who are 65 or older, or permanently disabled, can use HSA funds for nonmedical expenses without penalty, paying only taxes owed on the funds

    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

    How an HSA plan works

    • With an HSA plan, preventive services are 100% covered. There is no cost to members for preventive exams, screenings, and certain generic prescriptions.
    • Members pay the full cost for non-preventive care and prescriptions until they reach their plan year deductible. After they meet their deductible, members pay a set coinsurance for covered services.
    • Members can use tax-free money from their HSA to pay for qualified medical expenses - both before and after meeting their deductible.
    • Premera pays 100% of covered services after members meet their out-of-pocket maximum.

    HSA eligibility requirements

    Before an HSA an can be opened, a member must be covered by a qualified high deductible health plan. They must also be able to answer NO to the following questions:

    • Are you covered by another health plan?
    • Are you enrolled in Medicare?
    • Are you another person's dependent?

    Integrated banking

    We offer integrated banking through ConnectYourCare, so that members who enroll in an individual HSA-qualified health plan can make the most of their HSA accounts. This account offers:

    • No monthly service fees
    • A healthcare payment (debit) card
    • Online access 24/7, making it more convenient to track and manage qualified healthcare expenses
    • Opportunity to invest in mutual funds that include more than 100 options with no loads and no transaction fees (for members who meet the minimum balance)
    • UMB Bank serves as the custodian bank for these HSA accounts*

    HSA accounts set up through ConnectYourCare give members the ability to maintain records either through their mobile app or by scanning documents to the ConnectYourCare website. This makes it easier to store records in one place for future reference, such as filing taxes or responding to an IRS audit. In addition, the ConnectYourCare site gives them access to tips for making the best use of their accounts for investments, contributions, and paying for expenses.

    Before an HSA an can be opened, a member must be covered by a qualified high deductible health plan. They must also be able to answer NO to the following questions:

    *UMB Bank n.a., is a member of the FDIC. Founded in 1913, UMB Bank is one of the largest independent banks in America.

    ConnectYourCare™ is an independent company providing health-related personal funding account services to Premera Blue Cross and Premera Blue Cross Blue Shield of Alaska employer groups and members.