Health Savings Account (HSA)

Health Savings Account (HSA)

If you enroll in the High Deductible Health Plan (HDHP + HSA), you are eligible to open a Health Savings Account (HSA), administered by Transamerica. An HSA can help you pay for eligible health care expenses such as medical, dental, vision care, prescription drugs, and other health care expenses.

What’s In It for Me?

  • Amy’s contributes to your HSA! It’s FREE money! See the chart below for contributions.
  • You can set aside pre-tax money from your paycheck to help pay for additional out-of-pocket health care expenses. HSAs give you triple tax advantages:
    • Your contributions to the HSA are not taxed*
    • Payment of qualified expenses is tax-free
    • Earnings are tax-free*
  • The HSA is an individual account you own! The entire balance is yours to keep. If you leave the company, the account goes with you.
  • You can make changes to your HSA contributions at any time. Unused funds always roll over to the next plan year.
  • Freedom to control and manage your health care spending and savings to grow your balance for future qualified medical expenses, such as those in retirement.

How Much Can I Contribute in 2027?

Contributions cannot exceed the annual IRS maximums. In 2027, the IRS maximum for individual coverage is $4,500 and for family coverage is $9,000. If you are age 55 or over, you may contribute an additional $1,000.

Coverage Type Amy’s Annual HSA Contribution Maximum Employee Contribution Maximum Contribution Limit
Individual $1,000 $3,500 $4,500
Family $2,000 $7,000 $9,000
Age 55+ Additional $1,000

HSA Eligibility Requirements

  • You must be enrolled in the HDHP + HSA plan.
  • You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account.
  • You cannot be enrolled in Medicare or Tricare.
  • You cannot be claimed as a dependent on someone else’s tax return.

*State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor.

How Does It Work?

With the HDHP + HSA, you are responsible for the full cost of care until you reach your deductible ($4,000 individual / $8,000 family). After you meet your deductible, the plan starts splitting the cost for care with you. That means you should be prepared to pay your full deductible at any time, and the HSA—with Amy’s contribution!—can help.

HDHP + HSA Tips

1. Compare Your Paycheck Cost

Look at the biweekly cost of each medical plan. If the HDHP + HSA costs less than the EPO or PPO, consider putting some or all of that savings into your HSA.

2. Start With Money From Amy’s

Amy’s contributes to your HSA, giving you a head start on paying for care. For individual coverage, the $1,000 contribution equals 25% of the $4,000 deductible.

3. Use Your HSA for Care

In-network preventive care is FREE, with no deductible to meet. For other care, use your HSA debit card to pay eligible expenses. You can also ask your provider for a cost estimate before your visit.

4. Keep What You Don’t Spend

Unused HSA money rolls over from year to year and stays with you—including money from Amy’s. Your balance may also earn interest, helping you build savings for future health care expenses.

Picture This

You enroll in individual coverage with the HDHP + HSA and Amy’s contributes $1,000 to your HSA. You decide to contribute $100/month to your HSA from your paycheck. During the year, you use FREE preventive care and spend $500 from your HSA to help pay for doctor visits and prescriptions. You end the year with $1,700 left in your account—that money rolls over and stays yours—giving you a head start on next year’s expenses or helping you build savings for future health care.

See Your Benefits In Action

Alex* usually doesn’t need much medical care, beyond annual preventive care visits. But this year, he requires an outpatient surgery.

Benefits in Action broccoli iconHDHP + HSA
With individual HDHP + HSA coverage, Alex’s estimated cost for care is $5,240. Amy’s HSA contribution can help reduce his final cost.
Total estimated cost of care
(Urgent care, ER, CT scan, and surgery)		 $10,200
Alex’s annual deductible $4,000
Amy’s deductible credit N/A
Remaining deductible Alex must meet $4,000
Alex’s coinsurance applied to cost remaining after deductible (20% of $6,175) = $1,240
Alex’s total cost of care $5,240
Amy’s HSA contribution $1,000
Alex’s final cost $4,240

*Example is for illustrative purposes only. Actual costs and benefits will vary.

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