Health Savings Accounts

• A Health Savings Account (HSA) offers triple tax savings. You do not pay taxes on:
  • Your contributions
  • Any investment earnings
  • Money you take out of the HSA, as long as you use it to pay for eligible health care expenses
• For 2024, the maximum contribution to your account from all sources (your contributions and, if applicable, the company contribution) cannot exceed:
  • Individual: $4,150
  • Family: $8,300
  • Catch-up contribution: If over age 55, you can make an additional catch-up contribution of $1,000 up to age 65.
• You can make pretax payroll contributions and start, stop or change your HSA contributions at any time by logging in to your Optum Bank account. You do not need to experience a qualified life event to change your contribution amount.
• You can use HSA funds to pay for current and future eligible health care expenses. Eligible expenses, as defined by the IRS, include:
  • Medical deductible, copays and coinsurance
  • Prescription drugs
  • Over-the-counter medications with a provider’s prescription
  • Dental and orthodontic services
  • Vision care
  • Hearing aids
  • For a complete list of eligible expenses, refer to IRS Publication 502.
• Unused money rolls over each year. You own the balance in your HSA and can take it with you if you:
  • Change medical plans
  • Change jobs or
  • Retire.

• If this is the first time you are enrolling in an HSA-eligible plan, an HSA will be opened for you at Optum Bank, and you will receive a welcome kit and HSA debit card at your home mailing address.
• After your account is opened, you can register and log in to set up your contributions, designate a beneficiary, activate your debit card and more.
• If you already have an HSA through Optum, you can continue to review your account details via the Optum Bank site dashboard.
• Please note that funds must be in your HSA before you can claim a reimbursement.
• You can pay your provider at the time of service using your HSA plan debit card, and the expense will be automatically deducted from your HSA balance.
• Or, you can pay for services using your own money and reimburse yourself with funds from your HSA.
• Or, you can pay for services out of pocket and let your HSA grow, earning interest for future eligible expenses.

• Your HSA will be opened for you at Optum Bank.
• The company will deposit half of its contribution into your HSA in January and the other half in July, as long as you remain enrolled in the PPO HSA Plan.
• New Hires will receive a prorated deposit based on their hire date in January or July (depending on month of hire) along with their normal HSA deposit.
• For 2024, the maximum contribution to an HSA, from all sources, including the company contribution, is $4,150 for individual coverage and $8,300 for family coverage.
• Since the company is contributing to your HSA, the maximum that you can contribute in 2024 is $3,650 for individual coverage and $7,300 for family coverage.
• You do not need to contribute to the HSA to receive the company contribution.

If you are currently enrolled in a Health Care Flexible Spending Account (FSA) and want to enroll in an HSA plan for 2025 (either the PPO HSA Plan or the EPO HSA Plan), you need to either:

• Spend the remaining amount in your Health Care FSA, by Dec. 31, 2024; and before that date, notify the company that you will not participate in the carryover option (so you have no Health Care FSA funds available); or
• Ask the company to move any unused funds into a Limited-Purpose Health FSA.

If you enter the FSA carryover period with a balance and have not declined participation in the carryover option for 2025, you cannot enroll in an HSA-eligible plan until the carryover period ends. You are not allowed to roll Health Care FSA funds into an HSA.

There are also a few important limitations to HSAs. Federal regulations include the following requirements:

• You must be enrolled in a qualifying high-deductible health plan. Our PPO HSA Plan and EPO HSA Plans meet this requirement.
• To contribute to and use funds from an HSA, you cannot have any other health coverage other than a qualifying health plan. This includes a regular Health Care Flexible Spending Account (FSA), although HSA participants can have a Limited-Purpose FSA for vision and dental expenses.
• If you are enrolled in Medicare, you and your employer cannot contribute to an HSA. This limitation includes those who are enrolled in Medicare due to a disability as well as those enrolled in Medicare Part A.
• You cannot contribute to an HSA if you can be claimed as a dependent on someone else’s tax return (although spouses have separate rules).