Health Savings Account (HSA)
Save on Health expenses and create an account that stays with you
An HSA allows you to contribute pre-tax funds through payroll deductions to an account that you can use for qualified medical, dental, vision, and pharmacy expenses. Since your HSA is yours to keep (even after employment ends), you can use your account to pay for current expenses or save it to spend later. You can even invest in your HSA after it has met a dollar value threshold.
This page explains the HSA for employees who have not yet enrolled. Click here if you have already enrolled and want to know how to use your Plan.
Am I eligible?
To be eligible to contribute to an HSA, you must meet all of the following:
- You are covered by a qualified High Deductible Health Plan (HDHP).
- You aren’t enrolled in Medicare.
- You have no other health coverage.
- You cannot be claimed as a dependent on someone else’s tax return.
If you and your spouse have HDHP coverage, you cannot generally have any other health coverage. However, you can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan
Employee Owned
Starting at age 65, funds may be withdrawn for any reason and are taxed as income. Expenditures for qualified expenses are tax-free.
How an HSA Saves You Money
Your contributions to your HSA are made pre-tax. This reduces your taxable income, allowing you to save on eligible expenses.
Example:
John and Mary’s combined gross income is $30,000. They have two kids and file their income taxes jointly. Since the couple expects to spend $5,300 on braces in the next Plan Year, they decide to contribute a total of $5,300 into their EMPOWER HSA.
HSA Contributions
Adjusted Income
Estimated Taxes
Out-of-Pocket Expenses
Remaining Income
Spendable Income Increase with HSA
With HSA
$5,300
$24,700
$1,890
$0
$20,314
$1,359
Without HSA
$0
$30,000
$2,295
$5,300
$18,955
$0
How an HSA Works
Enrollment
Enroll in the HSA through your Employer during your Employer’s open enrollment. Choose your annual election. Ask your Employer for the current IRS allowed yearly contribution.
EMPOWER Online Portal & Mobile App
After EMPOWER processes your enrollment, you will be able to create your account on the Online Portal and/or download the EMPOWER Flex Mobile App. Both allow you to check your balance, submit claims, and even invest your funds after your account meets a dollar value threshold.
EMPOWER Visa Debit Card
EMPOWER will mail two Debit Cards to you. These cards make it easy to pay for eligible expenses. You may also pay for expenses with a different method and file a claim to EMPOWER for reimbursement.
Contributions
Each payday, your Employer will deduct a prorated, pre-tax amount from your paycheck.
Available Funds
Funds are available in your HSA after they have been deducted from your paycheck.
How to Enroll
Employees generally enroll in the HSA through their Employer during open enrollment. However, you may enroll at any time as allowed by your Employer. During enrollment, you will choose your annual election.
