Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-deductible savings account. Withdrawals are tax-free when the money is used exclusively for paying or reimbursing qualified medical expenses (doctor visits, prescription drugs, over-the-counter medicines prescribed by a doctor) of the account owner, spouse and dependents.

To make contributions to an HSA the account owner must meet all of the following requirements:

• Must be covered under a High Deductible Health Plan (HDHP)
• Is not covered by any other health plan that is not an HDHP
• Is not enrolled in Medicare
• Cannot be claimed as a dependent on another person's tax return

What is a High Deductible Health Plan? It is a medical insurance plan that has a deductible of at least $1,200 (for single coverage - account owner only) with a maximum out-of-pocket cap of $5,950 (2011) / $6,050 (2012). For family coverage the deductible is at least $2,400 with a maximum out-of-pocket cap of $11,900 (2011) / $12,100 (2012). These amounts are adjusted annually for inflation.

Contributions for the current year can be made until April 15 of the following year.

Start saving for future healthcare today!

• Log in to MemberConnect
• Call the Contact Center at 888.732.8562
• Visit your local branch