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Frequently Asked Questions
Who is eligible for an HSA?
If you are covered by a qualified high deductible health plan you are generally eligible for an HSA; however, there are exceptions. If you participate in a program or policy that pays medical expenses before your deductible is met, you may not be eligible for an HSA.*
How do I use my HSA?
After enrolling, you will receive a debit card that you can use to access your Blue Healthcare Bank HSA. Personal spending account debit cards can only be used for qualified expenses and cannot be used at all merchants that accept debit cards or at any ATM. You can also use the online bill payment system to pay for medical bills out of your HSA or reimburse yourself for healthcare expenses you paid out-of-pocket. Instead of using HSA dollars to pay current medical expenses, you may invest HSA dollars for future needs or retirement.
How much can I contribute to my HSA?
For 2009, the maximum contribution to your HSA is $3,000 if you have individual coverage and $5,950 if you have family coverage. In 2010, the maximum contribution to your HSA is $3,050 for individual coverage and $6,150 for family coverage. Contributions made by others, including your employer, count towards the maximum limit. If you are 55 or older in 2009, you may make "catch up" contributions of up to $1,000 per year. You must be covered by an HDHP for at least one month to be eligible to make the full contribution for that year. For more details visit http://www.treasury.gov/offices/public-affairs/hsa/.
What happens to my HSA at year-end or if I change jobs?
Funds remaining in your account at year-end accumulate for future use. You own your HSA and can take it with you when you change medical plans, move jobs, or retire. Funds in the account are non-forfeitable and completely portable.
What healthcare expenses does my HSA cover? Your HSA funds can be used tax-deferred to pay for qualified medical expenses, even if the expenses are not covered by your HDHP. This includes expenses incurred by your family. There are hundreds of qualified medical expenses, including many you might not expect like dental visits, orthodontics, and glasses. Refer to IRS Publication 502 for a complete list of qualified medical expenses.
Click here to view more FAQs on the U.S. Treasury website.
*Please be reminded that Health Savings Accounts have tax and legal ramifications. Blue Healthcare Bank does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products.