March 9, 2023
For your clients who chose our Bronze HSA plan, a high-deductible health plan with a health savings account (HSA) can have real advantages:
- Great basic coverage
- Lower monthly premium
- Chance to save tax-free money to use on qualified medical expenses
For clients new to an HSA plan, all the benefits and details can be confusing. Here are some quick tips about HSAs to help your clients make the most of their plan.
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 non-preventive care medical and pharmacy expenses until they've met their annual deductible. Preventive services are still covered in full. Once their out-of-pocket maximum is met, their plan pays 100% of their expenses for the rest of the plan year.
HSA benefits
The following benefits are 5 of the top reasons clients select our Bronze HSA health plan:
- HSA contributions are tax-free
- HSA money can be used to pay copays, deductibles, and coinsurance
- HSA money rolls over every year
- HSA money never expires—even if you change jobs, health plans, or retire
- HSA money can be invested in a range of mutual funds, stocks, and bonds
HSA plan administrator
While an HSA can be set up with any bank or credit union, we partner with Optum Financial for HSA administration. Optum 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
Annual HSA contribution limits
Each year, total contributions to an HSA may not exceed the annual limits set by the IRS. The 2023 limits are:
- Deductible minimum that qualifies for an HSA: $1,500 for individual; $3,000 for family
- Maximum out-of-pocket: $7,500 for individual; $15,000 for family
- HSA contribution limit: $3,850 for individual; $7,700 for family
- Catch-up contribution for 55+ years: an extra $1,000
More information
General information for clients is available on the LifeWise Health Savings Account web page. To view qualified expenses, encourage clients to sign in to the Optum Financial website.