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MEDICAL INSURANCE

HOW THE HEALTH SAVINGS ACCOUNT (HSA) WORKS

The HSA plan includes two components:
1. A health plan that consists of medical, prescrip on drug, mental health and substance abuse benefits. You make before‐tax
contribu ons from your paycheck for this coverage.
2. A Health Savings Account, or “HSA,” is a bank account funded by you that gives you the opportunity to save and pay for
current and future eligible healthcare expenses with pre‐tax dollars.

The illustra on below shows the basics steps to how this medical op on works.

1 You pay the full cost for most expenses (including the full cost for You can use the HSA, a
most prescrip on drugs) un l you meet the annual deduc ble.
tax‐advantaged saving and
spending account, for
2 Once you meet the annual deduc ble, you pay the cost of medical eligible medical
services and prescrip on drugs through coinsurance (the
and prescrip on drug
percentage of costs that the medical op on pays, and that you expenses. See pages
pay).
5 and 7 for more HSA
details, including
3 If the total amount you pay (your deduc ble cost plus your
coinsurance) reaches your annual out‐of‐pocket maximum, then annual IRS contribu on
the medical op on will pay 100% of eligible costs for the rest of the maximums.
year.

HSA OPTION HIGHLIGHTS
 You’re covered in full for most preven ve care services when you use network providers. Checkups, immuniza ons, rou ne
screenings, and even some prescrip on drugs — they are covered at 100% when you visit network providers.
 You’re protected from excessive costs. Your out‐of‐pocket expenses are limited to the annual out‐of‐pocket maximum which
includes your deduc ble and the percentage of the cost you pay for medical services and prescrip on drugs. If the cost you
pay for covered services reaches the annual out‐of‐pocket maximum, you’re covered at 100% for the rest of the year.
However, if you use a non‐network provider, your out‐of‐pocket costs (including your out‐of‐pocket maximum) will be
higher. In addi on, the amount the HSA op on will cover towards out‐of‐network expenses will always be subject to
reasonable and customary limits.
 You can save, invest and spend tax‐free using your HSA. Only the HSA op on lets you use a Health Savings Account to save
tax‐free for eligible out‐of‐pocket healthcare expenses to include dental and vision. Please reference Sec on 213(d) for a
complete list of the eligible expenses defined by the IRS. Spend the money now or save it for future healthcare expenses
even when you re re or leave Koeller, Nebeker, Carlson, & Haluck. The money rolls over from year to year – meaning
there’s no “use it or lose it” rule!
 For 2019, as an HSA holder, you can choose to save up to $3,500 for individual and $7,000 for family coverage, and for 2020, up to
$3,550 for individual and $7,100 for family coverage (if you are 55 years old or older, you can save an additional $1,000) ‐ and these
contributions are 100% tax deductible from gross income.

KEEP IN MIND
You can change your HSA contribution amount at any time during the year. However, you must establish your HSA through HSA
Bank during the 30 day enrollment window after your hire date.

Educa onal Video
Click here to watch a quick video to learn the basics of how our the HSA medical plan works.

HSA Compatible High Deductible Health Plan (HDHP + HSA)
h p://video.burnhambenefits.com/hdhp/

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