Should you enroll in the HDHP $1500 ASBAIT medical plan, you are eligible to make pre-tax contributions to a Health Savings Account (HSA) offered by Health Equity. We encourage you to review the resources in this section and contact Health Equity with any questions or concerns.
The benefits of making pre-tax payroll contributions to a HSA include:
- Significantly lower monthly health insurance premiums
- HSA contributions are not taxed
- You earn tax-free interest on HSA balances.
- HSA funds used for qualified medical, dental and vision expenses are not taxed
- With an HSA, you own the account and all contributions. Unlike flexible spending accounts (FSAs), balances in an HSA roll over each year and remain available for qualified expenses even if you change health plans, retire or leave the District.
Who can participate in the HSA?
- You must be covered under the $1,500 HDHP plan (Can’t be enrolled in the Gold or Silver plans)
- Cannot be covered under a health plan with less than a $1,500 deductible (specific illness/accident policies are okay)
- Employees enrolled for benefits under Medicare, Tricare, or AHCCCS are NOT eligible to contribute towards their HSA
- Not covered as a dependent under another person’s tax return (other than your spouse)
What are the rules for using the money in the HSA?
There are some rules for using your HSA funds. If you are under the age of 65, you MUST use your HSA funds on qualified medical, dental, vision, and prescription expenses. Some examples or qualified expenses are:
- Chiropractic Care
- Dental Treatment
- Smoking Cessation Programs
See IRS Publication 502 for a complete listing. For your convenience here is the link http://www.irs.gov/taxtopics/tc502.html