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Health Savings Account Administration
Health Savings Accounts are for employer sponsors who choose
to offer this funding option in conjunction with a qualified High Deductible Health Plan.
Employees have instant access to HSA claims status and account
balances through myFirstChoice.
Health Savings Account (HSA) Defined
The HSA is an account used to pay for qualified medical expenses,
including prescriptions. The HSA can be employer-funded with pre-tax contributions and
can also include pre-tax employee contributions. The HSA must be coupled with a qualified
high deductible health plan. Distributions from the HSA are typically on a tax-free
basis. An HSA is very similar to an Individual Retirement Account that is used only
for health care, except that the funds can be spent at any time without a tax penalty
as long as they are spent on health care.
HSA Advantages
- Use of pre-tax dollars reduces taxable income.
- Unused funds roll over from year to year.
- Funds are owned and controlled by the employee.
- Funds and earnings are never taxed.
HSA Enrollment
Enrolling in an HSA first requires that you are enrolled in
a qualified High Deductible Health Plan and you have not enrolled in any other non-HDHP
plan. As long as these two criteria are met, you can enroll in an HSA. If your employer
offers a qualified HDHP, but does not also offer an HSA, you can still enroll in an
HSA, but First Choice would not be the administrator.
HSA Reimbursement
Pre-tax dollars (contributed by you or your employer) are
distributed into your HSA. You will receive a Debit Card to pay for healthcare expenses
directly out of your HSA. There are guidelines around qualifying expenses, but it is
to the discretion of the employee to use the HSA funds for appropriate health care expenses.
HSA Debit Card Integration
FCHA offers an optional integrated Debit Card solution through
SmartFlex.
Participants use their Debit Card to pay for qualified expenses directly out of their
HSA. Participants are not required to submit receipts for their medical expenses when
using a debit card.
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