Health Savings Accounts (HSAs)

Basic Coverage, lower premium

Our high-deductible health plans with health savings accounts (HSAs) offer your clients great basic coverage, a lower monthly premium, and the chance to save tax-free money to use on qualified medical expenses.

5 benefits of having an HSA

1. HSA contributions are 100% tax free.
2. HSA funds can be used on copays, deductibles, and coinsurance, along with other qualified medical expenses.
3. HSA funds are owned by the member, roll over every year, and accrue interest.
4. HSA funds can be invested in a range of mutual funds, stocks, and bonds.
5. 100% paid coverage for preventive care and certain preventive prescription drugs.

Is your client eligible for an HSA?

Before an HSA can be opened, your client must be covered by a qualified, high-deductible health plan. They must also be able to answer "NO" to the following questions:

• Are they claimed as a tax dependent on another person's taxes?
• Are they enrolled in Medicare?
• Have they received any Veterans Affairs health benefits in the last three months?
• Are they covered by their own or a spouse's flexible spending account (FSA), health reimbursement arrangement (HRA), or non-HSA health plan? Exceptions: limited-purpose FSA or post-deductible HRA.

How a high-deductible health plan with an HSA works

After enrolling in a qualified, high-deductible health plan, your client pays—out of pocket or with their HSA funds—for all medical and pharmacy expenses until they've met their annual deductible. Once their deductible has been met, their plan will pay for 100% of their expenses for the rest of the plan year.

We offer HSA administration through Optum Financial, which gives your clients the ability to maintain records through both their mobile app or website. In addition, the Optum Financial website features helpful information on how to make the most of their HSA for medical expenses and investments.

Optum Financial administration includes:

• No monthly service fees
• A healthcare payment (debit) card
• 24/7 online access to track and manage qualified healthcare expenses
• Investment opportunities without loads or transaction fees

How your client can set up their HSA account

If they’re enrolled in a qualified high-deductible health plan and meet the eligibility requirements, they’ll need to complete the HSA enrollment form and mail it in. More information is available on the LifeWise member HSA page.