Health Savings Plan with HSA
The Health Savings Plan with a Health Savings Account (HSA) is a high deductible health plan that combines current-year coverage with the opportunity to save for both current and long-term health expenses. The Health Savings Account (HSA) is a tax-advantaged savings feature that lets you save money to cover medical expenses now and in the future.
The Health Savings Plan covers the same types of expenses the BCBS PPO Plan covers, including 100% coverage for preventive care. And, the same BCBS National PPO network of providers applies to both plans.
To learn more about the BU Health Savings Plan, take a look at these resources:
- The BU Health Savings Plan User Guide
- The BU Health Savings Plan HR website pages
- The Health Savings Account (HSA) website pages
- Blue Cross Blue Shield Coverage Advisor Tool – Use this interactive tool to help you see which plan might offer you the best value based on your expected medical expenses. The tool allows you to estimate your out-of-pocket medical expenses for the coming year. You can also use the tool to help determine how much to set aside in a Health Savings Account or a Health Care Flexible Spending Account.
- BCBS Find a Doctor Tool – Log in to estimate your medical costs for 2017
The Health Savings Account (HSA)
If you elect the Health Savings Plan, you are eligible to open a Health Savings Account (HSA) through Fidelity. It’s a tax-exempt account established primarily to pay for qualified out-of-pocket expenses not covered by the health plan. Money in your HSA can be used to pay for deductibles, coinsurance, and qualified health services such as doctor visits, hospital care, and prescription drugs
Funding Your HSA
For 2017, the University will contribute $500 for single coverage and $1,000 for other coverage levels once you open and contribute to your HSA with Fidelity. You immediately own the University’s contributions to your HSA. Like all other money in your account, it can be used immediately to pay eligible expenses, tax-free, saved for future expenses or even withdrawn (although such withdrawals may then be taxable). Even if you leave the University, these contributions remain yours.
You may contribute to your HSA using pre-tax dollars through payroll deduction. Your contributions plus the University’s contribution cannot exceed the IRS maximum:
HSA Coverage Level
2017 IRS Limit
Maximum Employee Contribution
|Additional “Catch-up” Contribution for those 55 and older||+ $1,000||n/a||$3,900/single
* In order to receive University contributions, you must open an HSA with Fidelity Investments. If you have a Health Care FSA balance remaining from 2016, neither you nor the University can contribute to an HSA until April 1, 2017.
The University’s contributions will be credited to your HSA once your first payroll contribution is made to the account.
Important HSA Rules
To contribute to an HSA, you must meet the following criteria:
- You must be enrolled in a high-deductible health plan as defined by the IRS; the Health Savings Plan is intended to qualify as a high-deductible plan.
- You cannot be covered under any other medical plan.
- Neither you nor your spouse can have a health care flexible spending account (FSA) in 2017 to pay for medical expenses.
- You cannot be claimed as a dependent on anyone else’s tax return.
- Neither you nor the University may contribute to the HSA once you attain age 65 if you enroll in Medicare Part A.
Medicare and Health Savings Accounts:
- If you are enrolled in Medicare, you cannot be enrolled in a Health Savings Account, and you can no longer contribute to the HSA or receive employer contributions to your HSA. However, you may continue to invest your money and be reimbursed for qualified expenses.
- If you delay your enrollment in Medicare, you may continue to make contributions to your HSA past the age of 65, as long as you are still covered by a qualified High Deductible Health Plan with Health Savings Account. In addition, you are eligible to make an additional $1,000 in yearly HSA catch-up contributions.
- If you enroll in SSI (the income portion of Social Security), this automatically enrolls you in Medicare Part A and you would not be eligible to contribute to your HSA or receive employer contributions.
NOTE: In Alabama, California and New Jersey, state income taxes may apply to your Health Savings Account (HSA) contributions. For more information, consult your personal tax advisor.
For further assistance, you may contact us at email@example.com or call 617-353-2380.