Page 41 - SOLO Member Guidebook

HEALTH SAVINGS ACCOUNTUNDERSTANDING HSAS

6. UNDERSTANDING HSAs

If you are attracted to the premium savings of a • Do not open the HSA until your application to a
ConnectiCare SOLO High-Deductible Health Plan ConnectiCare SOLO HDHP has been accepted.
(HDHP), you may wish to combine it with a
Health Savings Account (HSA). The HSA fund • Once your ConnectiCare SOLO application is
offers a tax-favored solution for meeting the health approved, you should open the HSA fund as soon
plan deductible. as possible. In order to pay for medical expenses
with the HSA, the fund must have been opened
Note: HSAs can only be combined with a ConnectiCare before the date that the claim was incurred. Even
SOLO HDHP. Our ConnectiCare SOLO POS plans if you don’t fund it, the account must be opened.
are not HSA-compatible.
• You should open the HSA even if you don’t
You are not required to open an HSA if you have intend to fund it right away. You will have until
an HDHP. However, millions of Americans have April 15th of the following year to fund up to the
chosen to do so because an HSA offers these key maximum amount set by the IRS.
advantages:
• You will fund the HSA — and you will own it.
• The HSA allows you to place pre-tax money The HSA is a personal savings account that earns
into an account to meet the deductible and any tax-free interest. If you ever switch health plans or
copayments, coinsurance or out-of-pocket costs HSA administrators, you take the HSA account
of your ConnectiCare SOLO plan. with you.

• HSA funds can be used to pay for a variety of • Contributions to the account may now exceed
other qualified medical expenses that are not the plan deductible. The maximum annual
covered by the ConnectiCare SOLO plan. amount you are allowed to contribute in 2015 is
These expenses include over-the-counter drugs, $3,350 for self-only coverage and $6,650 for family
eyeglasses, dental services, prescriptions and other coverage, as set by the IRS.
medical supplies.
• There are tax benefits. Self-employed individuals
• All unused dollars in the account can be carried may claim their HSA contributions as a tax
over from year to year. deduction. Individuals who work for an employer
may be able to deposit money into their HSA on
PLEASE SEE “IMPORTANT NOTICE” ON a pre-tax basis. You should consult with your
THE INSIDE BACK COVER. ConnectiCare Agent and your tax advisor on the
tax benefits of an HSA account.
What You Need to Know First
HSAs have a number of unique features, but the • You can carry over your funds. Unused dollars
arrangement can be confusing to some people. It’s can be saved and carried over year after year.
important to understand the following key points In doing so, these dollars are invested and earn
before choosing an HSA. tax-deferred interest.

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