HSA - Health Savings Account - HR Service, Inc.

What is an HSA?

An (HSA) Health Savings Account is a popular option for employees who elect
one of the increasingly prevalent High Deductible Health Plans.

What are the 2020 HSA Contribution Limits?

As part of the consumer-directed healthcare (CDH), HSAs offer participants enrolled in a qualified high deductible health plan (HDHP) to save on taxes while setting aside money for out-of-pocket healthcare expenses for themselves and their families. HSA owners can make tax-free contributions to their accounts. Updated 2020 contribution limits are: $3,550 for individuals, a $50 increase from 2019 & $7,100 for families, a $100 increase from 2019.

What are the Advantages of Using an HSA?

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Technology

Provide web-based, fully integrated portals with 24/7/365 access to your account information.

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HR Professionals

Access to the Human Resources staff with safe and easy-to-use online, self-service portals you and your employees can use 24/7/365.

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Tax Advantages

A health savings account is tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). 

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Security

Enjoy secure access to accounts using a convenient Consumer.

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Tax Deductions

Your contributions are tax-deductible or pre-tax (if made by payroll deduction) and interest earned on your account and withdrawals for qualified medical expenses are tax-free! (Unused funds and interest are carried over, without limit, from year to year).

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Flexibility

When owned by an employee, can be funded by the employee and the employer.

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Investment

The contributions are invested over time and can be used to pay for qualified medical expenses.

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Healthier Lifestyle

Now you can promote healthier lifestyle choices through increased employee involvement and use of 100% covered preventative care. Go Green with paperless online claims, direct deposit reimbursement, and electronic statements. 

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You Own It

You own the HSA and it is yours to keep — even when you change plans or retire.

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Managed by Experienced Professionals

Administered by a trustee/custodian.

Additional HSA Ownership Advantages

  • HSAs are triple-tax advantaged: funds saved in the account are tax-exempt, interest and earnings
    gained in the savings account are tax-exempt, and payments made from the HSA for qualified
    expenses are tax-exempt.
  • Participants own their individual HSAs and it can travel with them from employer to employer, in retirement and during unemployment
    HSA contributions roll from year to year; there is no deadline for using the funds and the FSA the use-it-or-lose-it rule does not apply.
  • Can also become a supplemental retirement account. While health expenses continue to be eligible expenses for retirees, in addition, retirees can pay for any expense from their HSA with no additional tax penalties.
  • We have partnered with HealthCare Bank to act as the HealthCare Bank for our HSA clients.
  • HeathCare Bank offers a full suite of investment options for account holders with account balances exceeding $2,000.
  • Fully integrates accounts with our Limited or Post-Deductible FSA Options, allowing your employees to get even more tax advantage reimbursement savings.
  • The Provider Pay and Claims Integration features B3PA offers which are most advantageous to clients.
  • While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) — generally a health plan (including a Marketplace plan) that only covers preventive services before the deductible. For the plan year 2019, the minimum deductible is $1,350 for an individual and $2,700 for a family. For the plan year 2020, the minimum deductible for an HDHP is $1,400 for an individual and $2,800 for a family. When you view plans in the Marketplace, you can see if they’re “HSA-eligible.
  • See IRS Publication 502 for a list of qualified medical expenses: https://www.irs.gov/pub/irs-pdf/p502.pdf
  • See IRS Publication 969 for information on the tax treatment of HSAs: https://www.irs.gov/publications/p969
Contact a Benefits Advisor by phone or email with any questions. We are Here to Help.
Questions? Contact us by Phone: 385-237-5902 x1 or by email. We would love to hear from you!
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