Are you enrolled in NMC’s high deductible health plan? If so, you will choose an institution and set up a Health Savings Account (HSA). Here are some general facts about using your HSA.
How can I find out my account balance and review transactions?
Account balance and claims status information may be available three ways, depending on where your account is opened:
- If your HSA institution provides this service, log on to your online account for balance information.
- Call your Customer Service line for balance information.
- Refer to your printed statements if your HSA institution provides them. Keep in mind that these will not be up-to-date if you used funds since it was last generated.
How will I be able to use my HSA funds?
You should receive a healthcare payment card to access your HSA. You can also pay for eligible expenses with any other form of payment and request reimbursement from your account.
Do I have to use my HSA for all eligible expenses?
You can use your HSA to pay for your eligible expenses as you incur them. However, some people, called HSA savers, pay for current expenses out of pocket so that they can invest their HSA money and grow the account for future use. You should always save your itemized receipts and other paperwork to verify eligible expenses for when you withdraw funds, whether it is now or at some point in the future, in case you are ever audited by the IRS.
How can I add money to my HSA?
You can add funds to your HSA at any time, as long as you are enrolled in a qualified High Deductible Health Plan at the time you deposit it. You can deposit funds pretax by having it deducted from your paycheck, and you can increase or decrease your contributions throughout the year. Email Kelly Westphal if you want to change or start your HSA contribution amount. If you deposit money directly, you can get a tax break at the time you do your annual income taxes.
What happens if I leave the college or retire during the plan year?
HSAs are completely portable, which means you retain ownership of the funds after you leave NMC.
Can I borrow against my HSA?
No. You cannot borrow against or pledge funds in your HSA.
What happens to the money in my HSA after I turn age 65?
You can continue to use your account tax-free for out-of-pocket health expenses. When you enroll in Medicare, you can use your account to pay Medicare premiums, deductibles, co-pays, and coinsurance under any part of Medicare. You cannot use your account to purchase a Medicare supplemental insurance or “Medigap” policy.
Once you turn age 65, you can also use your account to pay for things other than medical expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. Individuals under age 65 who use their accounts for non-medical expenses must pay income tax and a 20% penalty on the amount withdrawn.
What happens to my HSA when I pass away?
If you are legally married at the time of your death, your spouse becomes the owner of the HSA when you die unless a different beneficiary is specified. If you are not married at the time of your death, the HSA becomes part of your taxable estate.
If you have questions about your HSA account, you can learn more on Priority Health’s website, or visit the IRS website for detailed information about HSAs, including an example of potential tax advantages, legislative information and answers to frequently asked questions. go to irs.gov now. –