What is an HSA?

A Health Savings Account or HSA Account is a tax exempt account that allows individuals to set aside tax deductible funds into an account to pay for medical related expenses. Unlike the FSA and HRA programs, a Health Savings Account requires an individual to be enrolled in a qualified High Deductible Health Plan. The 2009 definition of a High Deductible Health Plan:

Calendar Year 2009 Health Savings Account IRS Limits
	Individual Coverage	Employee Plus Coverage
Minimum Deductible	$1,150	$2,300
Maximum Out-of-Pocket	$5,800	$11,600
Contribution Limit	$3,000	$5,950
Catch-up Contribution (55 & Older)	$1,000	$1,000
Spouses over the age of 55 must establish their own HSA Account to receive the $1,000 catch-up provision.
Calendar Year 2010 Health Savings Account IRS Limits
	Individual Coverage	Employee Plus Coverage
Minimum Deductible	$1,200	$2,400
Maximum Out-of-Pocket	$5,950	$11,900
Contribution Limit	$3,050	$6,150
Catch-up Contribution (55 & Older)	$1,000	$1,000
Spouses over the age of 55 must establish their own HSA Account to receive the $1000 catch-up provision.

Participants determine the frequency and amount to fund into the HSA.  Funding can be made by the employer, with employee pre-tax contributions, and after tax contributions.  Funds that are not claimed during the plan year are rolled over to future years allowing participants to save tax advantage funds for potential post-retirement medical expenses.

HSAs are personal health care accounts, allowing you to determine what expenses are eligible for reimbursement.  Account holders are not required to follow the same documentation requirements that exist for Flexible Spending Accounts and Health Reimbursement Arrangements.  

CareFlex has partnered with HSA Bank to provide trusted solutions for Health Savings Account services. For additional resources on HSAs, Accounts please visit HSA Bank.