Paired with an eligible health insurance plan, a Health Savings Account (HSA) is a tax-advantaged savings account that allows you to pay for qualified medical expenses tax-free. HSA's increase your health insurance buying power four-fold:
At United Healthcare, we were at the forefront HSAs more than a decade ago.
The IRS determines what medical expenses are qualified for tax purposes. These can change at any time. But generally, services or items purchased to help ease or prevent a physical or mental defect or illness constitute a “qualified” medical expense.3
IRS publication 502 provides a comprehensive list of all current qualified expenses. But, please always consult your tax advisor should you require specific tax advice.
You should know that if you withdraw funds for non-qualified health care costs, they will be taxed at your income tax rate. Plus, you’ll incur a 20% tax penalty if you’re less than 65 years old.
Insurance plans that can be used with a Health Savings Account (HSA) must meet certain deductible ranges and out-of-pocket maximums set annually by federal law.6
We offer HSA insurance plans7 with a selection of deductibles to fit your needs and budget. And, we offer them as a complete HSA package – a qualified health insurance plan along with an HSA account set up with Optum Bank℠, our health care bank of choice, providing FDIC insurance for your savings. It’s one-stop shopping!
|Health Plan Minimum Deductible9||$1,300||$2,600|
|Health Plan Out-of-Pocket Limit10||$6,550||$13,100|
|Savings Account Maximum Deposit10||$3,350||$6,750|
In order to use your Health Savings Account funds tax-free, you must first establish your HSA account before you incur qualified medical expenses.3 Otherwise, the expenses will not qualify for tax purposes.
Once established, accessing your savings in your HSA account is easy with Optum Bank℠, our health care bank of choice:
You can leave your savings in your interest-bearing Optum Bank℠ HSA account, or, when you achieve a minimum balance of $2,000, you can choose to place your savings in select mutual funds. Unlike your savings, however, investments are not FDIC-insured, are not guaranteed by Optum Bank℠ and may lose value over time.
Optum Bank℠ offers a broad list of well-established mutual funds available for investment.
Funds contributed to your Optum Bank℠ HSA are FDIC insured. The maximum yearly contributions (and their associated tax deductions) are determined each year by the IRS.11
Unless certain circumstances exist, there is no minimum contribution required to open an HSA, and you do not have to contribute the maximum each year. But regular contributions will help you save more for medical expenses and maximize the tax benefits HSA plans offer.
Enjoying the tax-advantages of your HSA is easy:
3 Qualified medical expenses may not be covered under your plan.
7 Adjusted annually in accordance with the Consumer Price Index. All of our high deductible insurance plans offered with an HSA meet the IRS requirements.
8 Availability varies by state.
10 Adjusted annually in accordance with the Consumer Price Index. All of our high deductible insurance plans offered with an HSA meet the IRS requirements.
14 U.S. Department of the Treasury, Resources: Health Savings Accounts, 2013.
Health savings accounts (HSA) are individual accounts offered by Optum BankSM, Member FDIC, and are subject to eligibility and restrictions, including but not limited to, restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change. HSA is not insurance. For costs, benefits, exclusions, limitations, eligibility, and renewal terms, call a licensed Product Advisor to discuss your health insurance options at 1-866-310-7451 or get a free health insurance quote.