Health Savings Account

A Health Savings Account (HSA) helps you save for current and future healthcare expenses. It can be used for copays, deductibles and other health-related purchases like eye exams and glasses.

When you enroll, your Health Savings Account will be set up through WEX.

Learn more about Health Savings Account

About Health Savings Accounts

Basics

A health savings account (HSA) is an account funded to help you save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment.

Personal bank account: Dedicated for healthcare expenses, this account is owned and managed by you.
Control your contributions: You choose your contribution amount and can change your contributions at any time during the year so long as you do not exceed the annual maximum.
Contributions are pre-tax: No tax on contributions, interest, or withdrawals.
No expiration: Money carries over from year to year, unlike funds in a flexible spending account.

Advantages

Security: Your HSA can provide a buffer for unexpected medical bills.

Affordability: In most cases, you can lower your health insurance premiums by switching to health insurance coverage with a higher deductible.

Savings: You can save the money in your HSA for future medical expenses and grow your account through investment earnings.

Portability: Accounts are completely portable, meaning you can keep your HSA even if you change jobs or medical coverage, unemployed, move to another state, or change your marital status.

Tax Savings: An HSA provides you triple tax savings through tax deductions when you contribute to your accounts, tax-free earnings through investment, and tax-free withdrawals for qualified medical expenses.

Eligibility

You must be enrolled in a qualified high-deductible health plan (HDHP), and you cannot be enrolled in another health plan elsewhere, such as:

Spouse’s employer-sponsored non-qualified HDHP
Individual health plan
Medicare enrollment
Retiree military benefit plan (e.g. TRICARE)

HSA Contribution Limits

To contribute to an HSA, you must be enrolled in the High Deductible Health Plan (HDHP) and not be covered by other health insurance (including Medicare). Contributions to an HSA may be made with before-tax payroll deductions or personal contributions (personal contributions are also tax deductible). If you elect to make contributions through payroll deduction, your annual contribution will be divided evenly and deducted each pay period.

See IRS Publication 969 for more information.

Individual

This is the IRS Contribution Limit for individual accounts for the 2026 calendar year. Your total annual contributions should not exceed this amount.

$4,400

Employer Contribution

$500

Your Total Maximum Contribution

$3,900

Family

This is the IRS Contribution Limit for family accounts for the 2026 calendar year. Your total annual contributions should not exceed this amount.

$8,750

Employer Contribution

$1,000

Your Total Maximum Contribution

$7,750

Individual

This is the IRS Contribution Limit for individual accounts for the 2027 calendar year. Your total annual contributions should not exceed this amount.

$4,500

Employer Contribution

$500

Your Total Maximum Contribution

$4,000

Family

This is the IRS Contribution Limit for family accounts for the 2027 calendar year. Your total annual contributions should not exceed this amount.

$9,000

Employer Contribution

$1,000

Your Total Maximum Contribution

$8,000

Catch-Up Contribution

$1,000

If you are age 55 or older and are eligible to add money to your HSA, you can add money above the regular limits, referred to as a “catch-up” contribution.

Eligible Expenses

Visit the HSA Store

Medical

Out-of-pocket expenses such as deductibles, coinsurance, and copays
Hospital, lab and diagnostic services
Fertility or infertility treatment
Chiropractic care
Learning disability treatment
Smoking cessation programs
Doctor-prescribed weight loss programs
Over-the-Counter medications including aspirin and allergy/flu medication
Menstrual Care products
Hearing care

Dental

Artificial teeth
Dental treatments including cleanings, fillings, and extractions (cannot be cosmetic in nature)
Orthodontics

Vision

Contact lenses
Prescription glasses
Eye exams
Laser eye surgery
Prescription sunglasses
Prescription eye drops

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a personal bank account used to save and pay for eligible healthcare expenses on a tax-advantaged basis. To open and contribute to an HSA, you must be enrolled in a qualified High Deductible Health Plan (HDHP). The account belongs to you, and the money remains yours even if you change jobs or retire.

What are the tax advantages of an HSA?

HSAs offer a unique "triple tax advantage":

Contributions are generally made pre-tax.
Interest and investment earnings grow tax-free.
Withdrawals for qualified healthcare expenses are tax-free.

Who decides if the money I spend from my HSA is for a qualified healthcare expense?

You are responsible for spending your HSA money on eligible expenses and maintaining records of those expenses. Be sure to keep receipts and supporting documentation with your tax records in case of an IRS audit. For a complete list of eligible expenses, visit IRS.gov and review Publication 502.

What expenses are eligible for HSA reimbursement?

Eligible expenses generally include medical, prescription drug, dental, and vision expenses for you, your spouse, and eligible tax dependents. Examples include:

Doctor visits
Deductibles and coinsurance
Prescription medications
Dental exams and treatment
Vision exams, eyeglasses, and contact lenses
Mental health services

For a complete list of qualified expenses, visit IRS.gov and consult IRS Publication 502.

Can I use my HSA to pay for medical expenses incurred before I opened my account?

No. An expense must occur after your HSA has been established in order to be reimbursed with HSA funds.

I have an HSA but no longer have a High Deductible Health Plan. Can I still use the money tax-free for medical expenses?

Yes. Even if you are no longer enrolled in an HDHP, you can continue using your HSA balance tax-free for eligible healthcare expenses. There is no deadline for using the funds. You simply cannot make new contributions unless you meet HSA eligibility requirements.

Does my HSA money expire?

No. HSA funds never expire and there is no "use-it-or-lose-it" rule. Unused funds roll over from year to year and remain available for future healthcare expenses.

If I am enrolled in an individual HSA-qualified medical plan, can I use my HSA funds for my dependents' medical expenses even if they are not covered under my medical plan?

Yes. You may use your HSA funds to pay for qualified healthcare expenses incurred by your eligible tax dependents, even if they are not enrolled in your medical plan.

Can I pay for medical expenses in another country using my HSA?

Yes. Medical services received outside the United States may be eligible if they meet IRS requirements for qualified medical expenses. As always, keep your receipts and documentation for tax purposes.

Can I use my HSA to pay health insurance premiums?

In most cases, no. HSA funds generally cannot be used to pay health insurance premiums. However, exceptions include:

COBRA premiums
Certain long-term care insurance premiums
Health coverage premiums while receiving unemployment compensation
Some Medicare premiums after age 65

How do I use my HSA to pay for medical expenses?

When receiving medical care, ask your provider to bill your health insurance first. After the claim is processed, you'll receive an Explanation of Benefits (EOB) and a bill reflecting your responsibility. You can then use your HSA debit card or reimburse yourself from your HSA to pay the amount you owe.

Can I change my HSA contribution amount during the year?

Yes. You may generally increase, decrease, stop, or restart your HSA contributions throughout the year, provided you do not exceed the IRS annual contribution limit.

What happens if I use my HSA for a non-qualified expense?

If you use HSA funds for a non-qualified expense:

The amount withdrawn becomes taxable income.
If you are under age 65, you may also owe an additional 20% tax penalty.

Once you reach age 65, you may withdraw HSA funds for any purpose without the 20% penalty; however, non-medical withdrawals are still subject to ordinary income taxes.

Are people age 65 or older eligible to contribute to an HSA?

Eligibility to contribute to an HSA depends on Medicare enrollment, not age. If you are enrolled in Medicare, you cannot contribute to an HSA or receive employer HSA contributions. However, you can continue using existing HSA funds for qualified healthcare expenses tax-free.

Can I invest the money in my HSA?

Many HSA providers allow you to invest a portion of your balance in mutual funds, stocks, bonds, or other investment options. Any investment earnings remain tax-free when used for qualified medical expenses. Investment options vary by HSA administrator.

What happens to my HSA if I change jobs or retire?

Your HSA is portable, meaning you own the account. The funds remain yours regardless of employment status, retirement, or changes in health plans. You can continue using the money for qualified healthcare expenses.

Do I need to save my receipts?

Yes. The IRS requires HSA account holders to maintain records proving that withdrawals were used for qualified medical expenses and were not previously reimbursed by another source. Many people save receipts indefinitely for potential future reimbursement and tax documentation purposes.

Contact the provider of these benefits by calling this phone number or visiting this website: (866) 451-3399, www.wexinc.com

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