Is there a minimum contribution to an HSA?

The minimum contribution needed to enroll in a Health Savings Account depends on the custodian bank you chose. For example, JPMorgan Chase requires at least $100 to establish your account.

How do I make Health Savings Account contributions?

You will need to contact the custodian bank you choose for options.

What happens if I contribute more than the limit?

Contributions you make to your HSA that exceed the amount allowed by law are called “excess contributions.” Excess contributions are included in your gross income and you must pay income tax on them. There is also a six percent penalty on the excess funds, including any earnings through interest or investments for each year they remain in your HSA. However, you can avoid this excise tax on the excess contribution if you don’t deduct the contributions on your taxes, and you take them out of your HSA along with any interest or capital gains they’ve earned before the due date for filing your federal income tax return, including extensions for the year in which you made the excess contributions.

Can I get a High Deductible Health Plan from HumanaOne, but choose another source for my Health Savings Account?

Yes. If you’re eligible for a Health Savings Account, you can open your account with any of our preferred HSA partner banks, or you can contact any qualified Health Savings Account trustee or custodian to set up your account. Remember, the Health Savings Account is a bank account, not an insurance product, so you’ll want to compare many of the same things you look at when shopping for a bank – factors like fees, interest rates, and convenience.

How do I access my Health Savings Account?

Most Health Savings Account banks send a debit card in the mail. Use the card to pay for eligible expenses from your Health Savings Account automatically. Check with your HSA trustee for details and options.

What’s an eligible expense?

Health Savings Account funds can be used tax-free for IRS-approved expenses like:

• Doctor, hospital, and laboratory bills that apply to your deductible
• Over-the-counter and prescription medications
• Diabetic supplies
• Eye exams, eyeglasses, contact lenses and solution, and laser surgery
• Hearing aids
• Orthodontia, dental cleanings, and fillings
• Physical therapy, speech therapy, and chiropractic expenses
• Specialized equipment and devices for disabled persons
• Transportation expenses related to medical care
• Weight reduction programs for doctor-diagnosed obesity

Please note that this list is not all-inclusive. For a complete list, visit www.irs.gov.

Does all the money I contribute need to be in my Health Savings Account before I can use it?

You can only withdraw the amounts that have been deposited in your account.

What if my health expense is more than the amount in my Health Savings Account?

If your medical expense is more than the current balance of your Health Savings Account, you need to pay the remaining costs out-of-pocket. Then, once more funds are added to your Health Savings Account, you can reimburse yourself from the HSA on a tax free basis.

What happens when my Health Savings Account funds are gone?

Once you use up your Health Savings Account funds, you are responsible for medical and pharmacy expenses until you reach your deductible.

What if I don’t use all of the money in my Health Savings Account during the plan year?

The funds carry over to the next year and continue to accrue interest. You never have to worry about losing the funds. Even if you die, the remaining funds pass to your beneficiary.

Who makes sure my expenses are eligible?

You’re responsible for complying with Health Savings Account spending regulations. The IRS may ask you to prove an expense is eligible, so always save itemized receipts when you spend Health Savings Account funds.

What if I use the Health Savings Account for ineligible expenses?

In the event you use Health Savings Account funds for an ineligible expense, you must pay taxes and penalty (10 percent) on the ineligible distribution. Check with your tax advisor for specific advice on handling this situation.

How do I earn money on my Health Savings Account?

A Health Savings Account is an interest-bearing savings account that allows you to set aside pre-tax monies for qualified medical expenses, and have easy access to the money when you need it for eligible medical expenses. All contributions to your account go into this savings account. Then, once you build your account to a certain level, you’ll have the opportunity to put some of your unused funds in an investment account. Investing your Health Savings Account money is completely optional.

Do I have to pay account fees?

Whether you invest your money or leave it all in the savings account, you will have account fees, as with any other bank account. For details on fees, please contact your financial institution. To avoid overdrafts, make sure you have enough in your account to cover any fees.

Are there minimum balance requirements?

The cash account minimum balance required to open an investment account is usually $2,000 with our preferred banks. If you’re thinking about investing Health Savings Account money, remember that you can transfer money from the investment account back to the savings account – but it could take a few days, so it’s smart to leave enough money in your account to cover potential medical expenses.

Do I need to file any forms with my taxes at year-end?

Yes. Your custodian bank will send the necessary forms (1099-SA and 5498), along with filing instructions, after each calendar year. HSA participants will complete tax form 8889 each year as part of their individual tax return.

What happens if, in the future, I enroll in a health plan through an employer?

• If your new employer offers a High Deductible Health Plan, you can leave your Health Savings Account funds where they are or roll them into a different account through another Health Savings Account provider.
• If you stop participating in a High Deductible Health Plan, you can continue to spend any remaining funds to pay for qualified medical expenses, and you will continue to earn interest on your balance, but you can’t put new money in the Health Savings Account.