About HSAs

If you enroll in a High Deductible Health Plan (HDHP), you are eligible for your own Health Savings Account (HSA). HSAs were created by the federal government to give people a tax-advantaged way to pay for health expenses and save for future needs. Also, your balance rolls over year-to-year and if you leave EVRAZ, the account moves with you. HSAs are individually owned and managed. 

You can use your HSA to:

  • Pay for current eligible expenses, such as copays, deductibles, prescription drugs, coinsurance, dental expenses, or other health care expenses

  • Pay for future eligible health care expenses, even if you are no longer enrolled in a HDHP

*HSAs provide a potential triple-tax benefit:

  1. While you are enrolled in a HDHP medical plan, contributions you make to your health savings account (HSA) are 100% tax-deductible.
  2. Withdrawals for qualified health expenses are also 100% tax-exempt. 
  3. You can invest any funds over a $1 balance and watch your savings grow.  You pay no taxes on the funds earned by the investments.  After an investment balance of $5,000 is reached, accounts are charged an investment balance fee of 0.01% monthly.

*This differs from Traditional and Roth 401(k)s where you either pay taxes before funds are deposited, or when they are withdrawn.  Additionally, at age 65, the funds that remain in an HSA can be used for anything, not just medical expenses, with no tax penalty.

Due to this amazing triple-tax benefit, you will strongly want to consider taking the following actions: 
        1. (First ensure you contribute enough to your 401(k) to get the full employer match, then) Contribute up to the annual IRS maximum for HSA contributions every year.  
        2. Invest all the HSA money you can (set up auto-invest if possible)
        3. Pay for your healthcare expenses out-of-pocket.  Make sure you save your receipts, and you can then submit those receipts for reimbursement at a later date, when desired.  

For those who want to take advantage of the tax-savings benefits more immediately: 
- Note that you can use the funds for medical, prescription, dental or vision expenses not covered by insurance for yourself, your spouse, or your tax dependents.
- Also, ask your carrier for a list of HSA-eligible expenses.  You may be surprised to find over-the counter items and basics on the list (e.g., bandages, pain relievers, sunscreen).  Just make sure you purchase the HSA-eligible items separately and save your receipt.

HDHP Tips:

- Remember to save your receipts for all eligible expenses. 

-Whether you use your HSA to pay for these expenses now or later.  HSAs are individually owned accounts, and you may need to submit proof that the account funds were used for an eligible expense.

-  Though HDHP medical plans have a higher deductible and out-of-pocket maximum than traditional plans, it is good to note that these plans often have a more extensive list of preventive medications (covered at 100%) as compared to traditional plans.  Call the Rx number on your Highmark ID card to inquire.

   - Preventive exams, screenings, and immunizations are covered at 100%.  You can contact your medical insurance carrier and ask for their preventive schedule.

    - You will save money by visiting urgent care vs. the ER, using telemedicine where appropriate, and using services such as quest for lab work.  If you're getting services and have questions on the lowest-cost option, call your insurance carrier for advice on the nearest and best site of care.

     - In general, being in a HDHP causes members to be more conscientious healthcare consumers, and this knowledge is important in the U.S., where healthcare costs continue to rise and many Americans are highly concerned about saving enough for healthcare expenses in retirement.

Important Notes:

  • You can contribute to an HSA only if you are enrolled in a qualified HDHP. You cannot be covered under a non-qualified medical plan, including your spouse’s plan. A non-qualified medical plan includes Medicare, Medicaid, a publicly funded insurance program and TRICARE*.

  • If you have an HSA, you can reimburse eligible individuals (yourself, your spouse, and your tax dependents) for eligible health care expenses tax-free. See www.irs.gov and search for Publication 502 for the full list of qualified and non-qualified medical expenses. IRS Publication 969 provides additional information on HSA rules. See IRS Publication 969 available at www.irs.gov for more information on HSA rules.

  • If you have an HSA, you cannot be enrolled in the EVRAZ general Health Care Flexible Spending Account or your spouse’s Health Care Spending Account. You may participate in a "limited purpose" Health Care FSA. Eligible expenses under a limited purpose spending account include most unreimbursed dental, vision and/or hearing care expenses (including expenses for your dependents) and out-of-pocket medical expenses paid after you meet your plan deductible.

  • If you enroll in the HDHP, you will automatically be enrolled in a qualified HSA bank account. Contributions will begin as soon as administratively feasible after you enroll in the HDHP. You will receive debit cards and you will have access to the funds as they accrue over the course of the year.

*Veterans who are receiving Veteran’s Administration hospital care or medical services for service-connected disability are not disqualified from participating in or contributing to an HSA.