What is a Health Savings Account (HSA)?
An HSA is a tax-advantaged medical savings account available to employees enrolled in a Qualified High Deductible Health Plan (HDHP). The funds contributed to an HSA are not subject to federal income tax at the time of deposit and unused funds roll over and accumulate year to year if not spent.
HSA Open Access HSA POS
This plan is administered by Blue Cross Blue Shield of Georgia (BCBSGA) and also utilizes the Blue Cross Open Access POS network. Employees have the flexibility to choose doctors both in or out-of-network. Of course, in-network care will typically cost less. HSA POS members may open a Health Savings Account (HSA) which is an individually owned, portable, pre-tax savings account. You may contribute up to $3,100 for individual coverage and up to $6,250 for family coverage to this account on a pre-tax basis and then use this money to satisfy the deductible or other qualified medical expenses. Employees age 55 or older, may contribute an additional $1,000 per year.
You May Contribute to an HSA If You:
- are covered under a Qualified HDHP
- are not covered by another plan that is not a Qualified HDHP
- are not currently enrolled in Medicare or TRICARE
- have not received medical benefits through the Department of Veterans Affairs during the preceding three months
- may not be claimed as a dependent on another person’s tax return
- Participants receive a $ for $ match of up to $375 annually for single coverage and up to $750 annually for family coverage and all other tiers.
- You own the funds; they roll over from year to year.
- Funds grow through investment earnings once you reach a balance of $2,500.
- You may adjust your contribution levels during the year.
- You enjoy triple tax savings: (1) tax-free deductions when you contribute, (2) tax-free earnings through investment, and (3) tax-free withdrawals for qualified expenses.
- Penalty-free withdrawals are available for any reason at age 65 (taxed as ordinary income).