Health Savings Account

Provided by: Clarity

The HSA is only available to employees who elect the Med 1 EPO HSA Plan option and are otherwise eligible according to HSA eligibility rules. HSAs are known for their triple tax advantage — contributions are made pre-tax, growth is tax-free, and withdrawals used for qualified health-care expenses are also untaxed.

HSA Highlights

An HSA is portable, meaning that if you leave your employer, you can take your HSA funds with you. There is no “use it or lose it” provision with an HSA. If you don’t use the money in your account by the end of the year, it just stays there and collects interest on a tax-deferred basis.

HSA Eligible Expenses Include:

• Medical and prescription drug deductibles, coinsurance, and copayments
• Dental deductibles, coinsurance, and copayments
• Orthodontia or other dental care
• Eye exams, contact lenses, and glasses

HSA Eligibility

You may contribute to an HSA if you:

• Are covered under an HSA Qualified High Deductible Health Plan (HDHP)
• Do not have disqualifying coverage such as other “first dollar” medical coverage etc.
• Are not entitled to (eligible and enrolled) Medicare
• Cannot be claimed as a dependent on someone else’s tax return

HSA Contributions

The maximum amount that can be contributed to an HSA in a tax year is established by the IRS and is dependent on whether you have single or family coverage. For 2025, the contribution limits are: $4,300 for individual coverage and $8,550 for family coverage. The annual catch-up contribution for individuals age 55 and older is $1,000.

Getting Started is Easy!

If you enroll in the Med 1 EPO HSA Plan for 2025 and wish to participate in the HSA, you need to make your election via the ADP enrollment site. If you are turning 65 or older, please see www.medicare.gov for restrictions on HSA accounts.

For more information on eligible expenses, please visit www.irs.gov/publications/p502

REMINDER: You cannot participate in both the Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA).