Health Savings Account (HSA)

An 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).

Changes to Your HSA in 2022

The University's current health savings account custodian, Health Savings Administrators (HSA) recently sold all of its health savings account business to HealthEquity, one of the country’s largest health savings account administrators.

The IRS requires a Blackout Period whenever a change like this occurs. The blackout period will be from February 19th through March 2nd. During this time, you will not be able to access your Health Savings account funds.

Please contact Health Equity at 844-396-0221 or HSA at 888-354-0697 with any questions. The University does not have access to any information regarding investments in your health savings account.

Transition Timeline

  1. You may transfer your HSA account to another custodian besides HealthEquity. While it is accurate that you may transfer your funds to another administrator, the University is only authorized to make contributions on your behalf to HealthEquity.
  2. On an annualized basis, your account administration fee with HealthEquity will remain the same as it is today with HealthSavings. The administrative fees associated with your account is paid for by the University. You will not see this charged to your account as an active participant.

Blackout Period

If you have any upcoming qualified medical expenses for copays, prescriptions, etc. during the blackout period, you are able to request an ACH transfer withdrawal in advance from the HSA portal www.healthsavings.com. The payment will take 1-3 business days to be deposited into the bank account you indicate on the withdrawal form. All claims would need to be submitted prior to February 16.

Investment Balances

When your fund investments are transferred to HealthEquity, they will be divided into three categories. A list of the funds in each category can be found here.

  1. Continuing Funds. These fund choices will remain available under the HealthEquity platform. Amounts you have invested in these funds will transfer in-kind to HealthEquity. This means that your investments in these funds will not be affected by the transfer to HealthEquity.
  2. Freezing Funds. These fund choices will be closed to new investments, but amounts already invested in these funds before the blackout period will transfer in-kind to HealthEquity. You will be allowed to hold your investment in these funds or sell at any time.
  3. Liquidating Funds. These fund choices will be liquidated to cash and transferred to HealthEquity and will become part of your cash balance. If you have investments in any of these funds when the blackout period starts, the investments will be sold and the proceeds from the sale will be available for you to re-invest in any of the Continuing Funds after the blackout period ends.

Cash Balances

After the transition, you will be able to allocate the cash in your HealthEquity account to one of the available investment options or have your cash deposited in a HealthEquity’s Bank.

2022 Annual Federal HSA Contribution Limits

  • Single - $3,650
  • Family - $7,300
  • Catch up (age 55 and older) - additional $1,000

2022 Annual University Contributions to Your Account

Income < $40,000 Income ≥ $40,000
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

High Deductible Health Plan - $1,750

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

You are not subject to these eligibility requirements to open an HSA with us if you are only transferring funds from an existing HSA.
*Contact your health insurance provider to confirm that your plan is HSA compatible and any FSA for which you are eligible qualifies as “limited purpose.” Health Savings is not able to determine if your health plan is qualified or if your FSA is “limited purpose.”

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.

Investment Options:

  • Vanguard No-load Mutual Funds - no minimums
  • Debit card from FPS Trust

Learn more about HSAs here.

Enrolling in a Health Savings Account

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

You may receive notification from Health Savings Administrators requesting additional information required to establish your account. The University will not make employer contributions or take deductions from an employees paycheck until we receive confirmation from HSA Administrators that your account has been successfully opened.

Contact HealthSavings Administrators with any questions at 888-354-0697.

Accessing Your Online Account

Your HSA is managed by HealthSavings Administrators. You can access your online account through their website.

To set up your account:

  • Username: Your full Social Security Number
  • Password: Your 8-digit date of birth (format is MMDDYYYY)

Making Changes to Your Account

Managing Your Finances

  • HSAs stay with you for life, so even if you are laid off or furloughed, 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 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 you will need to adjust your contribution limit based on the number of 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 ($3,550 x 6 / 12 = $1,775). If you wish to contribute the $1,000 catch-up contribution since you are over age 55, this should be prorated as well ([$3,550 + $1,000] x 6 / 12 = $2,275). 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 our 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 HealthSavings Administrators, 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.