Available to ALL employees with a high-deductible health plan! We are pleased to offer you the option of funding a health savings account (HSA) through payroll deduction. HSAs may be used in conjunction with any high-deductible health plans (HDHP) to help you manage health-care costs. (Even if you don’t elect Outstaffing Medical Insurance, you may still fund an HSA if you have eligible coverage elsewhere.)
What is the health savings account concept?
- You set aside funds tax-free to pay for health care expenses
- The account functions like a checking account with accruing interest
- Payments for medical expenses may be made by debit card
- Funds accumulate over time, rolling over from year to year
- Funds are fully vested, belonging only to you
- The account is portable between employers
- A penalty and tax liability is incurred if you use the funds for other, non-qualifying purposes
The IRS allows you to fund an HSA with pre-tax dollars to pay for almost all medical (including dental and vision) expenses; for details, see HSA center’s eligible/ineligible expense list. The HSA account is owned by you, managed separately from the insurance, portable between employers, and rolls over annually (you don’t lose it).
Opening and Funding an HSA
After you have confirmed you are covered by a high-deductible health plan, you will be able to open an HSA with any financial institution that offers them. If you already have an HSA, or your family is covered by a spouse’s HSA, you may elect to contribute to that existing account. Once your account is established, you can fund your HSA using pre-tax income through payroll deduction, simply complete the HSA Direct Deposit Authorization form.
Individual HSA LIMITS
|Maximum annual HSA contribution||$3,550||$3,500|
|Minimum annual deductible for HDHP||$1,400||$1,350|
|Maximum annual out-of-pocket expense limit for HDHP||$6,900||$6,750|
|HSA catch-up contributions (ages 55 & older)||$1,000||$1,000|
Family HSA LIMITS
|Maximum annual HSA contribution||$7,100||$7,000|
|Minimum annual deductible for HDHP||$2,800||$2,700|
|Maximum annual out-of-pocket expense limit for HDHP||$13,800||$13,500|
|HSA catch-up contributions, per individual (age 55 or older)||$1,000||$1,000|
An individual age 55 and over may make an additional “catch-up” contribution. A married couple can make two catch-up contributions as long as both spouses are eligible and at least 55 years of age. However, in order for a married couple to make two HSA catch-up contributions, a separate HSA must be established in the name of each spouse. Catch-up maximum for 2018 is $1,000.
If you need any assistance, please do not hesitate to call Outstaffing, as we are here to help you.