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What is a Health Savings Account (HSA) ?
A Health Savings Account is an alternative to traditional health insurance; it is a tax advantaged savings account that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
Who is eligible for a Health Savings Account?
To be eligible for a Health Savings Account, an individual must be covered by an HSA Qualfied Health Plan (HQHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not eligible for Medicare, and can't be claimed as a dependent on someone else's tax return.
What Is an HSA Qualified Health Insurance Plan/High Deductible Health Plan (HDHP) ?
An HDHP is a health insurance plan with minimum deductible of $1100 (self-only coverage) or $2200 (family coverage). The annual out-of-pocket (including deductibles and co-pays) cannot exceed $5500 (self-only coverage) or $11,000 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventive care and higher out-of-pocket (copays & coinsurance) for non-network services.
How do I set up an HSA account?
We are a one-stop service provider for HSA's. You can open your HSA, make pre-tax payroll contributions, obtain a debit card, pay bills online, manage your funds, store documents and access our educational resources all through our integrated website.
How can make tax free contributions to my HSA account?
You may make pre-tax contributions through your employer payroll system, OR you may fund the account with after-tax dollars and claim an "above-the-line" deduction on your tax return (even if you don't itemize) that reduces your taxable income. Employer contributions to your HSA are not considered income and are not taxed.
Once I have money in the account, how do I get it out?
MyHealthFunds provides you with an integrated Health Debit Card that you may use to pay for expenses. You may also use our online Bill Pay service to pay providers after your insurance has issued an Explanation of Benefits (EOB). If you pay for a qualified medical expense out of pocket, you may access your account and request a reimbursement from your HSA.
What can HSA distributions be used for?
The amounts can be distributed for either qualified medical or other expenses. If the amount distributed is used for qualified medical expenses, then the distribution is tax free. If the amount distributed is used for other than qualified medical expenses, the amount distributed will be taxed and, for individuals who are not disabled or over age 65, subject to a 10% tax penalty.
At year end, if there's money left in my account do I lose it?
No. This is not a "use-it-or-lose-it" plan. All unused funds can stay in your account indefinitely including any employer contributions.
Does my employer have control over my money?
You are the owner of the HSA. Even if your employer makes a contribution on your behalf, the money is 100% vested immediately.
Who is MyHealthFunds?
MyHealthFunds, Inc. is a Consumer Directed Healthcare Benefits company dedicated to helping employers and employees adopt, administer and benefit from Consumer Directed Health Care programs featuring Health Savings Accounts.
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