What is an HSA?

The HSA is a tax-favored account used in conjunction with an HSA-compatible health plan. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical, dental and vision expenses. Eligible expenses are defined by the IRS Publication 502 on irs.gov. If you don’t use all the money in your account, the balance rolls over to following years. Those dollars continue to earn interest — and continue to be available for medical expenses year after year.

If you elect the HDHP, you will be provided with the opportunity to enroll in a health savings account that you can use in conjunction with the consumer-driven health plan. Below are frequently asked questions and answers surrounding the HDHP and HSA.

HSA and HDHP FAQ

The HSA is a tax-favored account used in conjunction with an HSA-compatible health plan. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical, dental and vision expenses. Eligible expenses are defined by the IRS Publication 502 on irs.gov. If you don’t use all the money in your account, the balance rolls over to following years. Those dollars continue to earn interest — and continue to be available for medical expenses year after year.

You are eligible to open an HSA provided you have met the following criteria:

  • Must be enrolled in a HDHP and not also be covered by another health plan that is not a HDHP
  • Not listed as a dependent on another person’s tax return
  • Not be enrolled in Medicare

Health insurance premiums are lower than the cost of traditional health insurance. The average premium reduction is 20-30% as compared to traditional health insurance.

In most cases, doctors are generally encouraged to wait for the insurance company to process your claim before they request payment from their patients. You should also wait for your insurance to process your claim before making any payment to the providers. Aetna negotiates a price with its network doctors which is usually much less than what the doctor typically charges, and that savings is passed on to you.

If you are enrolling in the HDHP and currently have an FSA, you cannot contribute to an HSA at the same time. These are IRS rules and can be referenced at irs.gov.

The principal balance may be held in a guaranteed fixed interest rate investment option. Interest is tax-free and higher than in many other types of savings accounts. Distributions for qualified expenses are also tax-free.

Yes. With an HSA eligible HDHP, you are free to use any in-network doctor and hospital you choose. With an HSA eligible HDHP, you will still have an insurance ID card, and you will need to make sure that you present this card anytime you go to the doctor or pharmacy. This will ensure that you always get any network discounts available to you, and your medical provider will be able to file a claim with Aetna so any out-of-pocket amounts will be applied to your deductible.

Since an HSA is a tax advantaged account, you will need to be able to prove that money you spend from your HSA is for eligible medical expenses. Remember to save your receipts for all of your HSA expenses. You are not required to submit your receipts when you use your funds, but you will need them if you are ever audited by the IRS. You can use your HSA debit card to pay for expenses when you are billed, or you can pay out-of-pocket and reimburse yourself at a later date.

For 2024, you can save up to the maximum contribution limit of $4,150 for an individual HSA health plan and $8,300 for a family HSA health plan each year.
If you are married and your spouse has a family HDHP, then both spouses are determined to have family coverage. This is true even if one spouse has a family plan and the other has a self-only plan. Each spouse may have an HSA, and together you may contribute up to the family limit. You may not each contribute up to the family limit.
If you are age 55 and older you may contribute an additional $1,000 to your HSA. This is a “catch up” contribution that may be made each year that you are eligible for a HDHP. You may no longer contribute once you enroll in Medicare.

Yes. You keep your HSA even if you change jobs, change medical coverage, retire or make other life changes.

Aetna partners with PayFlex to manage your HSA. When you enroll in the HDHP, you will need to open an HSA through PayFlex. You will receive a PayFlex card in the mail which will help make it easy for you and your family members to pay for eligible expenses with the funds in your account.
There is a $4.20 Monthly Account Maintenance Fee associated with your PayFlex HSA.
You can access your account online at PayFlex.com, where you can view educational materials, forms, frequently asked questions and eligible expense listings. You will need to register your first time logging in. PayFlex customer service representatives are also available to help you with any questions. To speak with a representative, call the toll free number at 1-844-PAYFLEX.