What is an HSA?
An HSA is a savings account that allows you to set aside pre-tax dollars for medical expenses. To open an HSA, you must be enrolled in a high-deductible health plan (HDHP). You can use the money in your HSA to pay for the plan’s deductible, coinsurance, and other non-covered eligible expenses.
Additional information about HSAs can be found here, as well plan how much you might want to contribute for the year. Please note that the tool linked above is for informational purposes only and does not automatically enroll you into the benefit.
How is an HSA different than a Flexible Spending Account (FSA)?
Plan Eligibility:
HSAs are only eligible for Team Members who are enrolled in a High Deductible Health Plan. A Team Member may elect an FSA even if they are not enrolled in a medical plan. You cannot be enrolled in both an HSA and Healthcare FSA. You can enroll in a Limited FSA which can be used for Dental and Vision expenses.
Contributions:
During the year, you can change your contributions to the HSA at any time (typically takes 1-2 pay cycles for the update to show on a paycheck), however, FSA contributions can only be changed mid-year if you experience a qualified life event such as marriage, divorce, birth of a child, etc.
Claims Window:
Money that is contributed to an HSA can be used any time following their deposit into your account and never expire. An FSA can only be used for the year in which they are deducted from your paycheck. Remaining funds in the FSA at the end of the year can be eligible to rollover into the next year’s FSA. The IRS limits how much can rollover and updates annually, so be sure to confirm how much is eligible when completing your enrollment so you can be sure to elect the right amount for you and your family.
Additional Uses:
HSAs have the ability to be used as a retirement savings account! You have the option to set a balance you want in your HSA to be available for healthcare expenses and invest anything contributed above that level. Think of it as a second 401(k) account.
If you invest some of the balance of the HSA, you can still use the funds for future healthcare expenses!
Unfortunately, FSAs cannot be used for retirement planning. And the funds cannot be invested to grow into a large balance for future expenses.
If I sign up for an HSA and contribute money into the account, is there anything else I need to do?
Our HSA partner may need your engagement to fully open the account in your name. Be on the lookout for an email from them requesting your assistance with verifying your Identity. The Patriot Act requires the identity of the account holder be verified or else the account will be closed and contributed funds returned to you as taxable income.
Approximately 7-10 business days following the benefit becoming active, you will receive a debit card from the HSA partner. You can use the card to pay for eligible healthcare expenses.
Does ACBL contribute to HSAs?
Currently, ACBL does not contribute to HSAs.