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.

2020 HSA Contribution Limits per the IRS

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.

HSA Benefits

Technology

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

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.

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). 

Investment

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

You Own It

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

Security

Enjoy secure access to accounts using a convenient Consumer.

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. 

Flexibility

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

Managed by Experienced Professionals

Administered by a trustee/custodian.

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).

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 plan year 2019, the minimum deductible is $1,350 for an individual and $2,700 for a family. For 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.
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!
Scroll to Top
GET STARTED WITH HR SERVICE INC

2021 Has Arrived!

Do you Know every Important Compliance Date this year?

Get your 2021 Compliance Calendar Free Download.