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Health Savings Accounts
What is a Health Savings Account (“HSA”)?
A UBI Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSA's enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSA's. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.
You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer.
What Is a “High Deductible Health Plan” (HDHP)?
You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your “deductible”) but will generally cover you after that . Of course, your HSA is available to help you pay for the expenses your plan does not cover.
|Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans
|HSA contribution limit||Self-only: $3,450||Self-only: $3,400||Self-only: +$50|
|(employer + employee)||Family: $6,900||Family: $6,750||Family: +$150|
|HSA catch-up contributions (age 55 or older)*||$1,000||$1,000||No change"|
|HDHP minimum||Self-only: $1,350||Self-only: $1,300||Self-only: +$50|
|deductibles||Family: $2,700||Family: $2,600||Family: +$100|
|HDHP maximum out-of-||Self-only: $6,650||Self-only: $6,550||Self-only: +$100|
(deductibles, co-payments and other amounts, but not premiums)
|Family: $13,300||Family: $13,100||Family: +$200|
|* Catch-up contributions can be made during the year by HSA-eligible participants who will turn 55 by year-end.
** Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require statutory change.
Contributions for a given year may be made until the individual's federal tax return due date for that year, without extensions, in which case the HSA administrator must indicate that post-yearend contributions are attributed to the prior calendar year.
How can I get a Health Savings Account?
Consumers can sign up for HSA's with banks, credit unions, insurance companies and other approved companies. Your employer may also set up a plan for employees as well.
How much does an HSA cost?
An HSA is not something you purchase; it’s a savings account into which you can deposit money on a tax-preferred basis. The only product you purchase with an HSA is a High Deductible Health Plan, an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA.