Health Savings Accounts

Overview 

A Health Savings Account (HSA) is an individually-owned, tax-advantaged savings account. You may use HSA funds to pay for medical, dental, prescription and vision expenses. When contributing money to your HSA via payroll, your contributions are tax-free at time of deposit.

The HSA program is administered by Health Equity.  

Key Features

  • HSAs offer a triple tax advantage by making the following tax free:
    • Contributions
    • Distributions
    • Investment Earnings
  • You decide how much you want to contribute and the money in your account rolls over from year to year.
  • The HSA money is yours to keep-you can take it with you if you leave the university and/or use it during retirement.
IRS Eligibility Rules

 In order to be eligible to contribute to an HSA:

  • You must be covered by a qualifying High Deductible Health Plan (HDHP) - like the HSA-Advantage HDHP or MESSA ABC Saver.
  • You can't also be covered by any other non-HDHP plan, even if the coverage is secondary. Examples:
    • You can't have other coverage on your spouse's traditional PPO or HMO plan.
    • You can't be enrolled in any Medicare or TRICARE.
    • You can't be eligible for VA benefits and have received health benefits from the VA within the last 3 months unless for a service-connected disabilty.
  • You can't be claimed as as a dependent on someone else's tax return (other than your spouse).
  • You or your spouse can't be enrolled in a general purpose (or traditional) Health Flexible Spending Account (FSA) or Health Reimbursement Account (HRA).
Important Reminder:  If you are already enrolled in Medicare, you are not eligible to enroll in a HSA, per the IRS.  Medicare elgibility usually begins at age 65 and you can be retroactively enrolled in Medicare Part A, unless you can postpone your Medicare enrollment.  Medicare Part A is mandatory for those who receive Social Security income.  Check with the Social Security office to determine your eligibility to postpone Medicare enrollment.

Forms & Resources

Medicare and HSAs

Quick Overview

FAQs

 HSA's and Medicare


There are important legal and tax rules regardings HSAs.  A summary of those rules is contained in IRS Publication 969 "Health Savings Accounts and Other Tax-Favored Health Plans".  If you have an HSA, you should carefully review the IRS Publication.  If you have legal, tax or financial questions about HSAs, consults your tax advisor.