HSA Plan
  Health Savings Accounts (HSA's) were created by the Medicare bill signed by President Bush on December 8th, 2003 and were designed to help individuals save for qualified medical and retiree health expenses on a tax-free basis.

HSA's are similar to medical savings accounts (MSA's). However, MSA eligibility has been restricted to employees of small businesses and the self-employed. HSA's are open to everyone (individuals, small employers, large employers) with a high-deductible health plan.

An HSA is an individual IRA type account that is established by an eligible individual to pay for qualified medical expenses ( click here for a listing). The HSA stays with the account holder when changing jobs and upon retirement. It is a healthcare reimbursement account that rolls forward, is portable, and can be offered through a Section 125 Cafeteria Plan.

Click here for a printable HSA Fact Sheet

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  Log on to My Flex Online
  Check HSA
  Eligible Health Reimbursement Expenses
  Flex Change in Family Status & Employee Termination Form
  Estimate Your Dependent Care Expenses
  Eligible Over the Counter Drugs
  Flexible Spending Account Savings Calculator
  Request A Proposal
  FAQ
  Who can establish an HSA?
  An individual covered by a High Deductible Health Plan (HDHP) 
(Not sure what a High Deductible Health Plan is? Click Here.)
  An individual under the age of 65
  An individual who is not claimed as a dependent on another person’s tax return
  An individual who is not also covered by a low deductible health plan, except for certain permissible benefits
  Special Rules apply for married couples. Click here for listing.
  Benefits of an HSA:
  The individual gets an above-the-line deduction for amounts contributed, up to a certain limit (see below – HSA Contributions)
  Amounts in the HSA build up on a tax-free basis
  HSA deposits can earn interest
  Distributions for qualified medical expenses are not taxed
  HSA's are owned by the individual. They are portable and can be passed to your named beneficiary in the event of your death.
  Long-term Care insurance premiums may be paid from an HSA Account
  Click here for a comparison between regular health plans & HDHP/HSA plans.
  Businesses
  If an employer contributes toward an HSA and/or offers the HSA under a Cafeteria Plan the employer gets a deduction 
  Amounts contributed are excluded from the employee's taxable income, up to certain limits (see above – HSA Contributions) 
  Amounts in the HSA build up on a tax-free basis
Note: Excess Contributions may be assessed a 6% excise tax unless the excess contribution and any net income are returned to the individual before the last day of the period for filing the individual's tax return.
How an HSA is different than a FSA & HRA: FSA HRA HSA
 Can Small Employers Implement? Yes Yes Yes
 Can Large Employers Implement? Yes Yes Yes
 Can C-Corp Owners Participate? Yes Yes Yes
 Can Self-Employed Participate? No No Yes
 Is a Plan Document Necessary? Yes Yes No
 Are Employer Contributions Allowed? Yes- optional Yes- required Yes- optional
 Are Employee Contributions Allowed? Yes- optional No Yes- optional
 Can Unused Funds be Rolled to the Next Year? No Yes Yes
 Is the Account Pre-funded by the Employer? Yes No No
 Can Insurance Premiums be Paid From the Account? No Yes No*
 Do HIPAA Privacy and Security Rules Apply? Yes Yes Yes
*Certain situations exist in which insurance premiums may be paid from the HSA Account. Long-Term Care insurance premiums may be paid from the HSA, as can COBRA continuation premiums or for health insurance premiums while an individual is receiving unemployment compensation. If an individual is over age 65 they may use their HSA to pay insurance premiums that are not Medicare supplements.
  Click here for a more detailed comparison between HSAs, FSAs and HRAs.
 HSA Contributions
  For single coverage, the maximum contribution is the lesser of the health plan deductible or $2,700.
  For family coverage, the maximum contribution is the lesser of the health plan deductible or $5,450.
  Individuals age 55-65 can make additional pre-tax "catch-up" contributions of $700 for 2006. Amounts are doubled if the account holder is married and both spouses are 55 years of age.
  Employer contributions must be "comparable" (nondiscriminatory) in order to be excludible from the employee's income.
  Medicare eligible individuals cannot make contributions to an HSA.
 HSA Distributions
  Distributions from the HSA are excludable from income to the extent that they are used for "qualified medical expenses." A "qualified medical expenses" is generally an amount for medical care as defined in Code Section 213(d), examples of which are on the opposite page. These expenses include medical care for the account holder, and their spouse and dependents.
  Health insurance may not be purchased from the HSA, except for COBRA continuation premiums or for health insurance coverage while an individual is receiving unemployment compensation. 
  Long-term care insurance premiums may be paid from the account and at the individual's retirement age, any health insurance premium may be paid with HSA funds (with the exception of a Medicare supplement). 
  If a distribution is made from the HSA for other than a qualified medical expense, the distribution is included in the account holder's gross income and is generally subject to a 10% penalty. 
Upon plan implementation, the Employer will need to adopt a formal plan document and distribute Summary Plan Descriptions to all eligible employees.
 HSA Savings Calculator
  HSA Savings Calculator
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