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How HSAs Work
Employees choose their contribution level, and the account is funded by deduction with pre-tax dollars. The employees use the contributions to pay current medical expenses or build savings.
An individual may contribute up to $3,000 and a couple up to $5,950 a year. Enrollees over age 55 may make an additional "catch-up contribution." For 2009 and beyond, the maximum catch-up contribution allowed is $1,000 per eligible individual. As healthcare needs arise, employees choose when and where they seek treatment and pay for it from their tax-free HSA account.
Roll over the graphic below to learn more:
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There’s not just one reason millions of HSA accounts are being opened every year. There are dozens!
Health Savings Accounts provide a variety of benefits to both employers and enrolled employees. Reduced healthcare insurance cost. Tax sheltered savings. Complete freedom of choice in managing healthcare expenses. Learn more about HSA accounts and how they benefit participants with the graphic at the left. Then, for even more information, contact us. We’ll show you how PilotHSA provides the experience and expertise to make HSAs work best for everyone.
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HSAs help the employer maintain benefit levels while containing benefit costs. The tasks: Adopt a qualified High Deductible Health Plan and allow for employee contributions through payroll deductions. Ensure IRS compliance. Set an employer contribution level for the HSA plan to encourage enrollment and adopt a high deductible health plan. Provide employee information and an enrollment program. This is part of Pilot’s service. Make contributions to HSA accounts according to the plan. The benefits: HSAs, with a high deductible health plan, reduce company healthcare benefits cost and the employee’s healthcare cost. Pilot removes the administrative burden by providing education, enrollment and reporting. HSAs help the participant lower health care expenses and save for the future. The tasks: Enroll in the company’s qualified health savings account and in the high deductible health plan. Pay health care expenses using Pilot’s debit card. It works just like cash or any other debit or credit card. The benefits: The participant’s contributions, and employer contributions, are tax-free if funds are used for qualified medical expenses. HSAs provide freedom of choice. The enrollee chooses which healthcare providers to use, how much to use for medical expenses, and which medical expenses to pay from the HSA. Tax reporting is just as easy, using Pilot’s reports. A qualified HSA/HDHP (Health Savings Account plus High Deductible Health Plan) provides full coverage at a lower cost.
Plan details: High deductible health plans can lower total plan costs significantly.
With HSAs, healthcare expenses are assured from the first dollar.
All amounts in the HSA account are owned by the employee.
Unspent account balances roll over year-to-year. There is no use-it-or-lose-it; funds remain in the account until spent.
Accounts can grow through investment like IRAs.
Participants use the PilotHSA debit card to pay for any qualified medical expenses.
Qualified medical expenses include typical healthcare expenses such as doctor visits and hospital bills. They also include a wide range of other healthcare expenses such as equipment required because of illness (braces, crutches, splints, etc.) and telephone or TV equipment to assist the hearing impaired. For a complete list of qualified medical expenses click here.Some expenses may be paid from the HSA, even though they are not included in the high deductible health plan. Medical expenses are paid using the PilotHSA debit card. There are no forms to file. Unlike some plans, HSAs are not “use it or lose it.” Unspent dollars act as a retirement savings account.
Any HSA funds not used in the current year will be rolled into the next year. The savings — and the growth — keep increasing year after year.
Any investment growth in the account is tax deferred.
The participant chooses which expenses to pay from the HSA, saving as much as he or she wishes for future uses, such as retirement.
HSAs provide the same investment options and investment limitations as IRAs.
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