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Health Savings Accounts
(HSA)
May 2014
0
What is a Health Savings Account?
It's a special savings account for people who
have a qualified high deductible health plan
(HDHP). The HSA allows you to save tax-free
dollars to pay for IRS-qualified medical
expenses the HDHP doesn't cover.
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Who Can Open an HSA?
• Must be: Enrolled in a qualified High
Deductible Health Plan
• Not entitled to Medicare (entitled = eligible +
enrolled)
• May not have coverage under another health
plan or Healthcare FSA, (spouse’s plan) unless
permitted coverage
• Not claimed as a dependent on someone
else’s tax return
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Eligible HSA Expenses
• Medical office visits
• Dental care
• Prescription drugs
• Adult and child orthodontia
• Hospital fees
• Over-the-counter, non-prescription
products and prescribed
medications*
• Lab & x-ray fees
• Chiropractic care and acupuncture
• Vision care (eyeglasses, contacts,
Lasik surgery
• Hearing aids
To find out more, visit www.wageworks.com
*Over-the-counter medicines require a prescription as of 1/1/2011
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HSA Pays for Dependents, too!
• Use HSA to pay for your eligible
dependents’ health care expenses — even
if they’re not enrolled in HDHP
• Eligible dependents include anyone you
can legally claim as dependent on federal
income tax form
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Contributions to your HSA
• You decide how much to contribute and
invest
• 2014 IRS Annual Maximum Contributions
 $3,300 Individual
 $6,550 Family
• Age 55 and older: Additional $1,000 “catchup” contribution allowed
• Contribute pre-tax through DPS payroll
deduction.
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No hassle payment options
• WageWorks Health Care Card — just like
debit card
• Pay My Provider — direct online payments
• Pay Me — direct transfers to your checking
account or checks mailed to your home
• Pay Me Back — traditional reimbursement
with claim forms and explanation of
benefits forms (EOBs)
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It’s Your Money. Period.
• HSA goes with you no matter where you
go
• Don’t have to be enrolled in HDHP to
withdraw money from HSA
• Can use HSA even when switch
employers or retire
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What Costs are Associated with the
HSA?
• No account set-up fee or monthly service charge
• An HSA debit card is included at no cost. Spouse
and dependent cards are also available at no cost
• All overdraft and investment fees associated with
the HSA are the responsibility of the member
• Other costs that may apply are disclosed in
communication pieces provided by HSA Bank in
your welcome kit
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Please take note!
• Withdrawals are tax-free for eligible healthcare
expenses defined by IRS Code Sec.213(d)
• Expense must be incurred on or after date you
established your HSA.
• Withdrawals for non-qualified expenses become
income and subject to income taxes plus a 20%
penalty.
• You will be required to file tax forms related to
your HSA account.
• Tip! Make a file for your receipts and store them
in a safe place.
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Is a CDHP right for you?
Consider CDHP and HSA if you:
 Want to save hundreds or thousands of dollars
a year on health care premiums
 Want coverage for big expenses, but don’t
want to pay for coverage you may never use
 Want to set aside tax-free income now
for future health care expenses
 Want more control over how and when
you spend your health care dollars
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Questions
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