Health Savings Account (HSA)

What is an HSA?

An HSA is an individual savings account to help individuals cover out-of-pocket medical expenses. While HSAs are typically offered through an employer, anyone can open an HSA if they are enrolled in a high-deductible health plan (HDHP). Per the IRS, HSAs may only be used to purchase qualified eligible items or pay for eligible medical expenses. HSAs never “expire,” as funds roll over year over year. Also, if you leave your place of employment, your HSA is fully portable, and you can retain the account for life. The amount you can save each year depends on your coverage level.

Why enroll in an HSA?

HSAs help fill the gap between your out-of-pocket expenses and full insurance coverage. If you have a $3,500 deductible, you might have to pay that much with your own funds if you have a hospital or emergency event. You will also pay outright for doctor visits, instead of the customary co-pay amount. Setting aside pre-tax funds in an HSA means that you’ll have that safety net to cover these expenses. And, you never pay payroll taxes on the money during contribution or taxes on it upon disbursement. You can use this money to pay for your deductible and any out-of-pocket costs. If you don’t use all the money, it stays in your account. Additionally, many people use their HSA as a means of funding medical costs into their retirement by taking advantage of the built-in investment feature and allowing their HSA to grow. You never forfeit anything in your HSA, and the account is yours if you leave your employer. Some employers even help you pay for your healthcare costs by contributing money to your HSA.

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What is an HSA?

HSA Advantages

Tax-free

HSAs allow you to save pre-tax dollars for your healthcare costs. The amount contributed to your HSA is taken from your pay before payroll taxes are calculated, which can help you pay less in taxes.

Portability

HSAs are fully portable, regardless of your employer. If you leave for another organization, your HSA remains intact, with all the money you’ve contributed. You may always withdraw from it for qualified eligible expenses, and you may continue to contribute to it as long as you’re covered under a high deductible health plan (HDHP).

True savings account

As an individually owned account, the funds in your HSA do not forfeit at the end of the plan year and always belong to you. HSA optimizers may build their funds year over year to ensure they have money for medical expenses when they need them. Uninvested funds are FDIC-insured and gain interest over time.

Investment options

Once your balance reaches a specified level, you may invest* HSA funds like you would in a retirement account.

*Investments in securities through HSA investments are:

  • Not FDIC insured
  • May lose value
  • Not guaranteed by any bank

How to Request Funds

For yourself

The easiest way to access your HSA is to use your MyChoice Accounts Visa debit card. If you have paid for an eligible expense out of pocket and would like to reimburse yourself, you may put in a fund request.

  1. Log in to your account online or on the mobile app (iOS or Android) and locate the piggy bank icon labeled MyChoice Accounts (web) or Accounts (mobile).
  2. For an automatic transfer to your bank account, go to Manage > Bank Accounts to set up your account information in our secure portal.
  3. Return to your HSA accounts and select Transfer funds and fill in the amounts. Use the description section to identify the expense type for your personal records (optional).
  4. If you have not set up your bank account in our system and would like to receive a reimbursement, please use the Submit Claim function.

For a provider

If you have a bill for a doctor, dentist, hospital, etc. you may pay it directly with our provider pay option or use your debit card to pay the bill.
  1. Log in to your account online or on the mobile app (iOS or Android).
  2. From the web: Navigate to MyChoice Accounts by clicking the piggy bank icon, then select your HSA account. Select Submit Claim, then choose Provider for “Who do you want to pay?” Fill in the required fields and upload any supporting documentation for your records, if needed. Receipts are not required for HSA requests.
  3. From the mobile app: Open the app and select the Accounts tab at the bottom of the screen. Select Submit Claim, then choose Provider for “Who do you want to pay?” Fill in the required fields and upload any supporting documentation for your records, if needed. (Receipts are not required for HSA requests.) To finish, select Review and then Submit.