Health Savings Account
Health savings accounts (HSAs) allow you to set money aside for IRS-approved medical expenses through pre-tax contributions. Think of it as a personal bank account just for healthcare expenses.
What are the benefits of an HSA?
- HSA contributions are tax-free.
- Use HSA money to pay copays, deductibles, and coinsurance.
- HSA money rolls over every year.
- HSA money never expires - even if you change jobs, health plans, or retire.
- Invest HSA money in a range of mutual funds, stocks, and bonds.
An HSA plan helps you save in 3 major ways
- Pre-tax funds are deposited from your paycheck
- Tax-free withdrawals for eligible healthcare expenses
- Tax-free growth from interest earned and any earnings from investments
HSA contribution limits
2024
- Deductible minimum that qualifies for an HSA: $1,600 for individual; $3,200 for family
- Maximum out-of-pocket: $8,050 for individual; $16,100 for family
- HSA contribution limit: $4,150 for individual; $8,300 for family
- Catch-up contribution for 55+: $1,000 (unchanged from 2023)
2023
- Deductible minimum that qualifies for an HSA: $1,500 for individual; $3,000 for family
- Maximum out-of-pocket: $7,500 for individual; $15,000 for family
- HSA contribution limit: $3,850 for individual; $7,750 for family
- Catch-up contribution for 55+: $1,000 (unchanged from 2022)
HSA eligibility and coverage
Are you eligible for an HSA plan?
This is an IRS rule. You are eligible only if you answer NO to all of these questions:
- Are you claimed as a tax dependent on another person's taxes?
- Are you enrolled in Medicare?
- Have you received any Veterans Affairs health benefits in the last three months?
- Are you covered by your own or your spouse's flexible spending account (FSA), health reimbursement arrangement (HRA), or a non-HSA health plan? Exceptions: limited-purpose FSA or post-deductible HRA.
How an HSA plan works
- With an HSA plan, preventive services are covered in full. That means that there is no cost to you for preventive exams, screenings, and certain generic prescriptions.
- You pay the full cost for non-preventive care and prescriptions until you reach your plan year deductible. After you meet your deductible, you pay a set coinsurance for covered services.
- You can use tax-free money from your HSA to pay for qualified medical expenses - both before and after you meet your deductible.
- LifeWise pays 100% of covered services when you meet your out-of-pocket maximum.
Setting up your account
If you're enrolled in a qualified high-deductible health plan (Bronze HSA), complete the HSA enrollment form and mail it in.