Page 9 - Hospice Benefits Enrollments Guide

Health Savings Account (HSA)

You are eligible to open a health savings account for pre-tax contributions if you are enrolled in the
HDHP medical plan. The health savings account is not available with any other medical plans.

What is an HSA?
A health savings account (HSA) combines high deductible health insurance with a tax-favored savings
account. Money in the savings account can help pay the deductible. Once the deductible is met, the
insurance starts paying. Money left in the savings account earns interest and is yours to keep.

Who can contribute to it?
You can contribute monies on a pre-tax basis from you paycheck with an option to change the amount
each month if necessary.
Family members or friends may contribute as well by depositing monies into your HSA account.

How do I access my HSA monies?
You are provided with an HSA debit card and can use that card to access the monies in your account to
pay for eligible medical, dental, vision and prescription drug expenses, per IRS guidelines.

Is there a use it or lose it rule like with an FSA?
Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the
year; it continues to grow tax-deferred. And withdrawals to pay qualified medical expenses, including
dental and vision, are never taxed. Interest earnings accumulate tax-deferred, and if used to pay
qualified medical expenses, are tax-free.

Is there a limit to how much I can contribute to an HSA?
Yes, you are allowed to contribute up to the IRS maximums outlined below. If you are age 55 or older,
you are allowed to contribute an additional $1,000 above these limits as a “catch-up” contribution.

IRS Maximum HSA Contribution for 2017

Employee Only $3,400

Employee Dependent(s) $6,750

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