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HSA & FSA

Your Health Savings Account (HSA) and Flexible Spending Account (FSA) is a tax advantaged way to plan for costs of healthcare.

Health Savings Account (HSA) from Empower: you choose how much to contribute

A health savings account (HSA) is a tax-advantaged account that can help you pay for qualified medical, dental and vision expenses. Employees who are participating in a THG medical plan are eligible to contribute to these accounts via payroll.

Free "Seed Money" From Your Employer

If you enroll in our health plan and open an Optum Health Savings Account (HSA), your employer deposits free "seed money" to your account.

Triple Tax Advantage

  1. Tax deductible deposits
  2. Tax free savings
  3. Tax deferred growth
Why contribute to your HSA?

Your HSA is a great way to plan for future medical, dental and vision expenses. You can use HSA funds for certain Medicare premiums in retirement. The money you put into your HSA is not taxed when you contribute it, and as long as you spend it on qualified medical, dental and vision expenses, you never pay income tax on it.

Employer contributions to your HSA, called “seed money,” are indeed generous, but they typically are not enough to cover all health care expenses. You will need to decide how much more money you’d like to contribute on a pre-tax basis through automatic payroll deductions.

Total annual contributions from you and your employer cannot exceed the annual IRS limits.

Benefits of HSA
  1. You own the savings account
  2. Your HSA earns interest from Day One
  3. Funds build over time. You choose how to use them for qualified medical expenses
  4. You can use it to pay future eligible expenses tax free
  5. It’s portable—the funds are yours even if you change employers
Who is eligible?

In general, you’re eligible to contribute to your HSA and receive employer contributions if:

  • You’re covered by a qualifying HDHP that meets IRS guidelines (ours do!)
  • You are not covered by any other health plan
  • You are not enrolled in Medicare, TRICARE or TRICARE for Life
  • You have not received VA benefits within the past three months, except for preventive care; if you are a veteran with a disability rating from the VA, this exclusion does not apply
  • You cannot be claimed as a dependent on someone else’s tax return
  • Other restrictions and exceptions may also apply; request help from a tax, legal or financial advisor to discuss your personal situation
What can I do with an HSA?

You can pay for expenses like these:

  • Deductibles
  • Dental visits (exams, cleaning, orthodontia, emergencies)
  • Vision exams (contacts, frames, surgery)
  • Hearing aids (batteries)
  • Physical therapy
  • Counseling
  • Prescription medications
  • Elective surgeries
  • Emergencies and chronic conditions

Check out the full list of qualified expenses at: store.optum.com/expense-eligibility/

Will I lose money if I don’t use it?

No. There is no “use it or lose it” rule for HSAs. Your money carries over from year to year, and the account is yours Whether you change jobs, change health plans or retire, you keep the funds you’ve saved in your HSA.

Annual Employer Contribution (“seed money”) & IRS Contribution Limits
 
How to invest HSA Funds?

Once you reach the minimum HSA balance to invest, you can invest part of your HSA in mutual funds. These funds could grow in value, creating a nest egg for health costs in retirement.

Like any investment, mutual funds carry risks, and the money is not guaranteed to grow. Mutual funds can lose value, and investment funds are not insured by the Federal Deposit Insurance Corp (FDIC).

If you do pursue an investment account, you can choose how to spread your money among available mutual funds. You can move money out of (or between) funds at any time that you like.

Learn more by visiting empower.com and be sure to check out the HSA Investment FAQs in the Total Rewards and Benefits Portal.

Flexible Spending Account (FSA)

Flexible Spending Accounts (FSAs) allow you to set aside money on a pre-tax basis to pay for eligible health and dependent care expenses incurred during the elected plan year

TIP! If you’re participating in an HDHP but not maxing out your HSA contributions, contribute the extra money there instead of into a Health FSA.

  • You can use your HSA on eligible health, dental and vision expenses
  • HSA funds roll over each year, while FSA funds that are not utilized during the calendar year are forfeited
FSA Plan Types

Limited Purpose FSA (dental and vision expenses only) from isolved Benefit Services: (optional)

If you anticipate a major dental or vision care expense this year, you can set aside money on a pre-tax basis with a health FSA. You can pay for eligible expenses using the convenient isolved Benefit Services FSA debit card, which you’ll receive upon enrollment. Note: You must enroll in an HDHP to set up an FSA.

Dependent Care FSA from isolved Benefit Services (optional)

If you expect to need services like daycare, after-school care or eldercare this year, you can save and pay for them with a Dependent Care FSA. This type of account allows you to set aside money on a pre-tax basis to pay for eligible expenses.

FSA Plan Highlights
 Limited Purpose FSADependent Care FSA
Who is Eligible?Employees enrolled in the $2,800 HDHP or $4,000 HDHPAvailable to all benefits-eligible employees
Sample Expenses CoveredONLY eligible for dental and vision expenses, such as contact lenses, eyeglasses, dental surgery/crowns, orthodontia, etc.Daycare, After-School Care, Elder Care
Minimum Employee Contribution$250$250
Maximum Employee Contribution$2,750
$5,000 (Single OR married filing a joint tax return)
$2,500 (Married filing a separate tax return)
Guidelines for Limited Health FSA
  1. Annual pledged contribution is available on your effective date of coverage.
  2. The IRS requires you to keep copies of all expenses for which your FSA funds were used.
  3. Funds must be used by December 31. The IRS “use it or lose it” rules apply. The plan includes a rollover feature that allows you to roll over the IRS allowable amount of your unused annual funds into the next calendar year.
  4. The period to submit claims is 90 days from date of separation or end of calendar year. Claims incurred throughout 2024 must be submitted prior to 3/30/2025
Guidelines for Dependent Care FSA
  1. Annual pledged contribution is available to the extent of employee contribution.
  2. The IRS requires you to keep copies of all expenses for which your FSA funds were used.
  3. The period to submit claims is 90 days following the end of calendar year.
  4. Please note, you will not receive a debit card for your Dependent Care FSA account. Instead, once you’ve enrolled, you will submit eligible dependent care expenses via the isolved Benefit Services portal. Verify with your care provider that their funds qualify. Funds must be used by December 31, 2024, or they will be forfeited.

Forms

HSA Payroll Deduction Change Authorization Form
Download

HSA Rollover/Transfer Form
Download

Resources

HSA Seed Money Deposit Schedule (2024)
Download

Learn how to put your HSA to work!
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HSA Investment FAQs
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Access Your Optum HSA Account
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FSA - Eligible Expense List
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File an FSA Claim
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Beware of Identity Theft
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