Health Savings Account (HSA)

A HSA is an account that functions much like an IRA and a medical flexible spending account, where employees can invest money, reduce taxable income for the amount invested, and use the money without penalty for eligible medical expenses. The interest gained over the duration of the account is also tax free.

High Deductible Health Plan (HDHP) participants may participate in the HSA. HDHP participants may not participate in the medical flexible spending account (FSA).

The University's current health savings account custodian is HealthEquity, one of the country’s largest health savings account administrators. Please contact Health Equity with any questions you may have regarding your account. The University does not have access to any information regarding investments in your health savings account.

 

2024 Annual Federal HSA Contribution Limits

  • Single - $4,150
  • Family - $8,300
  • Catch up (age 55 and older) - additional $1,000

2024 Annual University Contributions to Your Account

Income < $40,000 Income ≥ $40,000
Base High Deductible Health Plan - $4,000

Individual: $1,500

Employee/Child(ren): $2,500

Employee/Spouse: $2,500
Family: $3,000

Individual: $1,000

Employee/Child (ren): $1,500

Employee/Spouse: $1,500
Family: $2,000
Value High Deductible Health Plan - $2,500

Individual: $500

Employee/Child(ren): $750

Employee/Spouse: $750
Family: $1,000

Individual: $500

Employee/Child(ren): $750

Employee/Spouse: $750
Family: $1,000

HSA Eligibility

Federal regulations require you meet all of the following eligibility requirements to open and contribute to an HSA:

  • Covered under a qualified high deductible health plan on the first day of the month
  • Not covered by any other health plan, including your spouse’s health insurance
  • Not covered by your own or spouse’s medical Flexible Spending Account (FSA) (unless it qualifies as a “limited purpose” FSA)
  • Not enrolled in any part of Medicare or Tricare
  • Have not received Veteran’s health benefits in the past 90 days for a non-service connected disability
  • Not claimed as a dependent on another person’s tax return

Investing in an HSA

Contributions to the HSA can be made via payroll deduction and/or directly to the account. Participants are immediately vested in their HSA, and there is no "use it or lose it" stipulation. It's the participant's account; it's portable and can be built on over the years.

Learn more about HSAs here.

Enrolling in a Health Savings Account

To enroll in a Health Savings Account (HSA), please go to the WEX Benefits Portal at benefitexpress.richmond.edu.

You may receive notification from Health Equity requesting additional information required to establish your account. 

Contact Health Equity with any questions.

Accessing Your Online Account

Your HSA is managed by Health Equity. You can access your online account through the Health Equity website.

Visit my.healthequity.com

  • You will receive information in the mail from Health Equity on how to register online along with a debit card to use your account for eligible expenses.

Making Changes to Your Account

  • To change your HSA contribution, please visit the WEX Benefits Portal at benefitexpress.richmond.edu.
  • To update the email attached to your online HSA account, log in to your Health Equity account and select "My Account".

Managing Your Finances

  • HSAs stay with you for life, so even if you terminate your employment or retire, you can continue to use your account.
  • You can use HSA funds to pay COBRA premiums or any other health insurance premiums if you are receiving federal or state unemployment benefits. If you need cash, you can reimburse yourself tax-free from your HSA for previous medical expenses that you paid for out-of-pocket.
  • You can continue to contribute as long as you still have an HSA-qualified plan and meet HSA eligibility requirements.
  • View examples of HSA-eligible items here.

How Medicare Impacts Your HSA

Download the guide: HSA Guide to Medicare

When you turn 65, you become eligible for Medicare. You can keep your HSA after you enroll in Medicare, but you and the University can no longer make contributions. Everything else stays the same — the funds are still yours, you can still invest them or use them for eligible medical expenses, and you can still use your account as a way to transfer your wealth to your beneficiary(ies).

If you enroll in Medicare mid-year, you’re still eligible to contribute, but only for the months you are not enrolled in Medicare.

For example, if you have a single high deductible health plan (HDHP) and enroll in Medicare on July 1, 2021, you may contribute up to 6/12th of the annual contribution limit for the 6 months you weren't enrolled in Medicare ($3,850 x 6 / 12 = $1,925). If you wish to contribute the $1,000 catch-up contribution since you are over age 55, this should be prorated as well ([$3,850 + $1,000] x 6 / 12 = $2,425). If applicable, be sure to stop or adjust employer contributions or any other automatic contributions.

Medicare enrollment, not eligibility, is what disqualifies you from being eligible to contribute to your HSA.

If you wait to enroll in Medicare Part A, B or D, you can still contribute to your HSA just like normal. Please note that if you are currently receiving Social Security monthly benefits, you cannot opt out of Medicare Part A. When you do enroll in Medicare, your coverage will retroactively cover you from when you turned 65.

So, if you plan to wait to enroll in Medicare, make sure to follow the guidelines below for stopping your HSA contributions:

  • If you plan to enroll in Medicare less than 6 months after you turn 65, stop making contributions when you turn 65.
  • If you plan to enroll in Medicare more than 6 months after turning 65, stop making contributions 6 months before you plan to enroll in Medicare.
  • If you know you have already mistakenly over-contributed, complete and submit an Excess Contribution Removal Form prior to filing your taxes and you will not be penalized by the IRS.

After Medicare enrollment, you can use your existing HSA funds to pay for Medicare and IRS-approved health insurance premiums.

Once enrolled in Medicare, your premiums for Part A, B, D, and Medicare Advantage Plans are considered eligible medical expenses that can be paid with your existing HSA funds for both you and your spouse. However, you cannot use HSA funds to pay for Medicare supplement (Medigap) premiums. If you are eligible for any employer-sponsored health insurance, these premiums are also considered eligible medical expenses.

You may find complete IRS guidelines about Medicare and HSAs on pages 6, 8 and 9 of IRS Publication 969.

Leaving the University - Next steps with your HSA

When you leave the University, the money in your health savings account is yours to keep, and rolls over year after year. You can continue to use it for qualified medical expenses for you, your spouse, and your tax dependents, and your account will remain open until you choose to close it. Just note that UR has been paying the monthly $3 administrative fee for your account, so you'll be charged with the fee each month once you leave.

If you remain enrolled in the high deductible health plan (HDHP), either through a new employer, COBRA, or an individually-purchased insurance policy, then you'll be eligible to contribute to your HSA.

If you have a HDHP through a new employer with an HSA administrator other than Health Equity, you can:

  1. Have two health savings accounts
  2. Ask your new employer to contribute to your current health savings account
  3. Roll over money from your current HSA to a new one

If you have a HDHP through an individually-purchased insurance policy or via COBRA, you may continue to contribute money to your HSA online, through payroll deduction, or via check. Your account will not change -- the account number and the debit card(s) will remain the same, and your online access will remain the same. When you login to your account, you'll see your former account, as well as your new individual account.