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Understanding your health savings account (HSA)


Overview

If you enrolled in the Healthy Savings Plan for 2015, you may be eligible to enroll in a health savings account (HSA). An HSA allows both you and/or the university to contribute to a tax-favored account that can be used for health care expenses. To be eligible for an HSA:

  • You may not be covered by another health plan (including Medicare)
  • You may not be claimed as a dependent on someone else's tax return
  • You, or your spouse, may not be enrolled in a Health Care Flexible Spending Account

HSA contributions are limited by the Internal Revenue Service (IRS). In 2015, the limit is $3,350 for an individual or $6,650 for a family. (2014 limits were $3,300 for an individual or $6,550 for a family.) If you are 55 years old or older, the IRS allows you to contribute an additional $1,000 under a catch-up provision.

Annual HSA contribution limits pertain to both your contribution and the university's contribution. If you are an active faculty or staff member (as opposed to a retiree), the university contributes annual seed money to your HSA in one lump sum. The amount is determined by your HSA enrollment date, per the table below. You are not required to contribute any funds in order to receive the university's seed money. However, you do have to complete HSA enrollment with HealthEquity in order to receive the seed money. Find the form in the forms and guides section on this webpage.

How to enroll

Once you enroll in the Healthy Savings Plan, and indicate you want an HSA, the university alerts HealthEquity that you are ready to enroll. HealthEquity will mail their HSA welcome packet directly to you. Note: If you enroll in an HSA during the university's annual enrollment period in the fall, it can sometimes take until January for you to receive your enrollment packet.

In order to comply with the USA PATRIOT Act, HealthEquity is required to verify the identity of each HSA account holder. Please be aware that you must complete the Customer Identification Process (CIP) within 90 days of HealthEquity first contacting you. If you do not complete your identification verification within 90 days, your HSA election will be terminated and you will not receive the university's contribution.

2015 university contribution to your HSA

HSA Enrollment Date Self Self & Spouse Self & Child(ren) Self, Spouse & Child(ren)
Jan 1- Mar 31 $400 $800 $800 $1,200
   ... meaning the IRS limit allows you to contribute an additional: $2,950 $5,850 $5,850 $5,450
April 1- June 30 $265 $535 $535 $800
   ... meaning the IRS limit allows you to contribute an additional: $3,085 $6,115 $6,115 $5,850
July 1- Sept 30 $135 $265 $265 $400
   ... meaning the IRS limit allows you to contribute an additional: $3,215 $6,385 $6,385 $6,250
Oct 1 - Dec 31 $0 $0 $0 $0
   ... meaning the IRS limit allows you to contribute an additional: $3,350 $6,650 $6,650 $6,650

 

View your HSA balance and activity

HealthEquity’s welcome packet will contain your debit card as well as instructions for establishing your account and online access. You can view your HSA balance, check that your university contribution has been deposited, and see your transactions by logging into your Health Equity account at HealthEquity.com.

Once you have been enrolled in the health savings account for 30 days, the university will deposit your seed money into your HSA within 7-14 days. Those who enroll during annual enrollment can expect to receive the funds in the third or fourth week of January. Any funds that you have elected to contribute through pre-tax payroll deduction will be deposited into your HSA within 5-7 days of payroll.

Change your contributions

You may change your pre-tax payroll contribution amount at any time during the year by completing and returning the HSA enrollment/change form. Find the form in the forms and guides section on this webpage.

Retaining ownership of your HSA

The minute money is deposited in your HSA, it is yours to keep forever. There are no requirements to use your HSA funds by the end of each year. (This is unlike a flexible spending account, in which funds must be depleted each year.) Furthermore, your HSA stays with you even if you separate from the university. And even if you are no longer eligible to contribute to your HSA, you can still use the funds that are in it. For example, individuals covered by Medicare may not contribute to an HSA, but they can use funds from an HSA that they had in years prior to enrolling in Medicare.

Receive your reimbursements

You can decide how to utilize your account funds. You may use your debit card to pay for eligible expenses, or authorize HealthEquity to pay for eligible expenses automatically when your claims are processed. You may also reimburse yourself from your HSA for any personal funds you spent on eligible expenses.

Your HSA funds may be used to pay for all IRS Section 213(d) expenses including:

  • Medical
  • Prescription drugs
  • Dental
  • Vision

While the university HSA contribution may be earned only by the primary subscriber to the Healthy Savings Plan, it can be used for any member of the subscriber's family.

Forms and guides
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Reviewed June 27, 2015.