Northern Benefits

Health Savings Accounts are savings accounts that you use to pay for your routine health care expenses with.

• HSAs contain funds that are owned and controlled by you, the account holder. These accounts can be funded yearly with an amount equal to the $2250 deductible for a single person or $4500 for a family.
• Health savings account monies not used rollover every year for your health care expenses and/or retirement.
• A health savings account is portable; the funds remain with you regardless of employment.

Money deposited into an HSA, up to the IRS limits, is tax-exempt and all withdrawals to cover qualified healthcare expenses are tax-free, including expenses for services not typically covered by medical insurance such as:

• Eye care, including contact lenses, eyeglasses & LASIK
• Dental, including orthodontics
• Chiropractic care
• and much more!

What power does health savings account give to you?
• You are given the power to choose the health care professionals, services, and products that are best for you.
• There is also the power to save money by purchasing a lower-cost, high deductible insurance plan.
• Health savings account funds pay for your qualified and routine health care expenses; insurance kicks in when you have extraordinary health care expenses.
• Account contributions that are tax deductible and earn interest tax deferred.

Employer contributions are tax deducted by the employer and are not included as income for the employee.
• If you leave your company, you can keep and continue your current HSA, if you or your next employer retain a high-deductible health care plan.
• If your new employer doesn’t offer an HSA program you can keep the money in your HSA and use the funds for qualified expenses as you did when you were eligible. However, you can no longer add dollars to a federally qualified account.

Frequently Asked Questions

Who is eligible for a federally tax-deferred HSA?
Any persons with a qualifying high-deductible insurance plan.

What expenses can I use my HSA account for?
Your HAS may be used for qualified medical, dental, vision and prescription drug expenses as defined in IRS Publication 502. Funds can be withdrawn as supplemental retirement income at age 65. Fund withdrawn at that time are considered taxable income. Funds withdrawn prior to age 65 for non-qualified expenses are taxable income and are subject to a 10% penalty.

Can I see any doctor with the HSA plan?
Yes! An HSA is NOT an HMO! With an HSA, you are free to use any doctor and any hospital you choose. Savings are available to you for choosing an in-network provider for care.

What happens if my medical expenses exceed the amount of my deductible?
If your covered expenses for the year exceed the deductible of your HSA major medical insurance plan, the policy will take over and pay the balance of the qualified expenses at 100% up to the maximum of your policy.

Do I have to fund my account every year?
No, you do not have fund your account each year but you do need to maintain a low minimum balance in the HSA.

How does an HSA work?

Health Savings Account
High Deductible Insurance	+	Savings Account
Protects from catastrophic medical expense		Used to pay deductible expenses
Protects from catastrophic medical expenses		Tax deductible deposits
Provides 100% coverage after deductible		Tax deferred growth
		Additional health care not covered by HDI

To learn more about Health Savings Accounts: contact us