- Human Resources
- Employee Benefits
- Your Benefits
- Health Savings Account (HSA)
Health Savings Account (HSA)
Our High-Deductible Health Plan (HDHP) with Health Savings Account (HSA) offers comprehensive health care coverage at a lower premium and higher deductible than traditional health care plans. As its name suggests, the plan also features an HSA. You can use funds in this account to pay for eligible services, or you can choose to pay for these expenses out of your own pocket and save your HSA funds for future expenses on a tax-free basis. Note: You can only use HSA funds as they are deposited in your account. You can always reimburse yourself later once you have accumulated funds in your account.
League City Contributions
If you enroll in the HDHP with HSA , you will receive an annual League City contribution of $1,500 for individual coverage and $2,000 for all other tiers into an HSA. This contribution is meant to partially offset the HDHP with HSA’s higher deductible.
There are several ways to contribute money to your HSA:
- Pre-tax contributions through payroll deductions
- After-tax cash contributions that are deductible when you file your taxes
- Catch-up contributions up to $1,000 per year if you are over age 55 (until you enroll in Medicare)
Total Annual Contribution Limit
It is important to note that your contributions, when combined with any contributions from League City, may not exceed the IRS annual maximum of $3,600 for individual coverage and $7,200 for family coverage in 2021. Note: Individuals 55 and older may make additional “catch-up” contributions up to $1,000 each year until they enroll in Medicare.
*You must be enrolled in a qualified high-deductible health plan to contribute to an HSA.
The HSA enables you to pay for the following qualified health care expenses on a tax-free basis:
- Qualified medical, dental and vision expenses not covered by the plan, as defined by the IRS in Publication 502 (PDF)
- COBRA premiums
- Qualified long-term care insurance and expenses
- Health insurance premiums when receiving unemployment compensation
- Medicare and, for those over age 65, retiree health insurance premiums (excluding Medicare Supplement and Medigap premiums)
To be eligible to open an HSA and receive the League City contribution (if applicable):
- You must be enrolled in an HSA-qualified high-deductible health plan (HDHP).
- You cannot be covered by any other medical plan that is not an HSA-qualified HDHP.
- You must not be eligible to be claimed as a dependent on another individual’s tax return.
- You must not be enrolled in Medicare or TRICARE.
- If you are a veteran, you must not have received veteran benefits within the last three months, except for preventive care.
- You must not be active military.
- You and your spouse must not have a health care flexible spending account (FSA).