Health Savings Account
A Health Savings Account (HSA) is a tax-favored account you can use to pay for eligible health care expenses, on a pre-tax basis, now or in the future. It's separate from the PPO Consumer Directed High and PPO Consumer Directed Low medical plans. But, the HSA is designed to work with your medical plan to provide a tax-free way to pay for the care you receive. Here's a quick look at how to enroll and use your HSA:
- Get Started
- Pay or Save
If you participate in the PPO Consumer Directed Plan High or PPO Consumer Directed Low you can open an HSA.
- To receive Huntington’s full contribution, you will need to open an HSA when you enroll with at least a $5 per pay period contribution. If you open an HSA mid-year, Huntington's contributions will be pro-rated.
- HSA contributions will be deposited at HSA Bank. Both Huntington’s and colleague’s contributions will be deposited in a FDIC insured HSA bank account.
- You’ll receive important information from HSA Bank that includes your account number, disclosure statement and current fee and rate schedule.
- Register with WageWorks, the HSA administrator, to manage your account 24/7 online or by phone.
Your 2014 HSA is funded by Huntington contributions and colleague contributions up to the IRS annual maximum limit.
- Core contribution made when you initially open an HSA and each January thereafter.
- Wellness rewards contribution made to reward you and your spouse/household member for participation in wellness-related activities, including a Health Assessment and biometric screening.
- Automatic, pre-tax contributions deposited each pay period. (Note: You can increase or decrease your contribution at any time).
With an HSA, you decide how to use your account -- pay for eligible health care expenses on a pre-tax basis, or save your HSA funds for future expenses:
- At the pharmacy, it’s easiest to pay with your Health Care Card – expenses are paid directly from your available HSA funds.
- When you get a medical bill, always compare it with your EOB. If there are discrepancies, contact your insurance company before paying the bill from your HSA.
- Pay health care expenses now with your HSA. WageWorks, the HSA administrator, provides several ways to pay:
- On-the-spot with a Health Care Card (like a debit card)
- Online payments to your provider through WageWorks.
- Pay with your own money by direct deposit or check and reimburse yourself.
- Save money in your HSA for future eligible health care expenses – even into retirement.
- There’s no “use it or lose it.” Leftover money in your HSA rolls over each year.
- You own your HSA. The money in your account is always yours, even if you change health plans, jobs or retire. Be sure to complete the HSA Designation of Beneficiaries Form so that your beneficiary(ies) receive your account balance.
- Invest your HSA. Put some or all of your HSA funds in an investment account. Choose from a variety of mutual funds, including Huntington Funds. Earnings are tax-free
Below is a high level overview of the 2014 HSA. For details, review the Health Care Part 1 Employee Handbook.
|HSA Eligibility||To open an HSA the following eligibility requirements apply:
(IRS Annual Contribution Limit)
|As specified by the IRS, the maximum amount that can be contributed to an HSA:
|Huntington*||Funded in January.
|Colleague*||Your contributions are automatically deposited into your HSA on a pre-tax basis from each paycheck throughout the year.
You decide how much you want to contribute up to IRS limits as follows:
* If you are age 55 or will attain age 55 by the end of 2014, you can contribute up to an additional $1,000 as a “catch-up” contribution.
|Coordination with health care flexible spending accounts||According to IRS rules, if you enroll in both the HSA and the HCSA in the same year, your HCSA cannot reimburse medical or prescription drug expenses that could be paid from your HSA until you have reached your deductible in the PPO Consumer Directed High or PPO Consumer Directed Low.|
|Using your HSA||Pay for your medical expenses out-of-pocket and let your HSA grow earning interest for future eligible expenses. Or, use your HSA to pay for eligible medical expenses such as your annual deductible, copays and coinsurance. Because your HSA contributions are made on a pre-tax basis, you can reduce your out-of-pocket costs by up to 40% because of federal and state tax savings (actual percentage depends on your tax bracket).|
|Eligible Expenses||Eligible expenses are defined by the Internal Revenue Service (IRS), including:
To receive reimbursement, the expenses must be incurred by you or your qualified relative.
|Tax Documentation||HSA Bank will send you HSA tax-related documentation:
|Portability – when you leave Huntington||At year end, any unused balance carries over. So if you leave Huntington, switch to another medical plan or even retire, your HSA and the money in it is yours to keep.|
|*Huntington and colleague contributions are pro-rated based on the number of months you are enrolled in one of the high-deductible medical plans – PPO Consumer Directed High or PPO Consumer Directed Low.|