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.
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.