Health Savings Account
A Health Savings Account (HSA) is a tax-favored personal savings account that works with your high deductible health plan. You can use it to pay qualified medical expenses such as deductibles, copays, dental and vision care. For a complete list of qualified medical expenses, see IRS publication 502. If you have an HSA Eligible Health Plan with Anthem, you are eligible to open a HSA bank account with Fidelity. Additionally, you will not be eligible to utilize a Healthcare FSA.
Major Benefits of an HSA
- Your account always belongs to you; you can take it with you when you leave or retire.
- Your balance rolls over from year to year.
- Contributing lowers your taxable income.
- The account helps you build a healthcare nest egg for emergencies or retirement.
- Centric will make monthly contributions to your HSA account. The contribution is $50 per month for individual coverage and $100 per month for EE/SP, EE/CH and Family. This contribution counts towards the yearly IRS maximum.
Triple Tax Savings
- Tax deduction when you contribute to your account.
- Tax-free earnings through investment.
- Tax-free withdrawal for qualified expenses.
| Annual IRS HSA Funding Limits | |
|---|---|
| Coverage Type | |
| Individual Coverage | |
| Family Coverage | |
| Age 55 or Older |
HSA Eligiblity
You may open and contribute to an HSA if you are enrolled in one of our two HDHP Medical plans and you:
- Are not enrolled in a traditional PPO plan through your spouse or another employer-sponsored plan.
- Are not enrolled in a government-sponsored program (Medicare, Medicaid, Tricare, etc.).
- Have not received VA benefits within the last three months (unless for a service-related disability).
- Are not claimed as a dependent on someone else’s tax return.
- Do not have a healthcare FSA; your spouse also cannot have a healthcare FSA through their own employer.
Important Resources
Fidelity HSA Guide
How to Transfer Your HSA Balance to Fidelity
High Deductible Health Plans with an HSA—How They Work Together
Together, your contribution and Centric’s annual contribution can cover some or all of your out-of-pocket healthcare expenses.
Deductible
You pay for your initial medical costs until you meet your annual deductible. This deductible is higher compared to the PPO Plan but can be offset by HSA contributions.
Coinsurance
Once the deductible is met, you and the Plan share any further healthcare costs until you meet the out-of-pocket maximum
You may use HSA dollars to pay for insurance.
Out-of Pocket Maximum
Each plan limits the total amount you will pay each year. Once you meet your out-of-pocket maximum, the plan pays 100% of your eligible expenses for the remainder of the year.