Health Savings Account (HSA)
If you enroll in the Medical Savings Plan and you choose to participate in the HSA, you will be required to contribute a minimum of $25 to your HSA. To receive matching contributions from ECU Health in your HSA, you will need to be actively contributing each pay period.
The HSA is a savings account used to pay for qualified medical expenses directly with your HSA debit card or to reimburse yourself at any time for medical expenses paid out of pocket. There is no time limit to reimburse yourself.
Who Can Contribute
You can contribute to an HSA only if you are enrolled in the Medical Savings Plan and are not covered by any other traditional medical plan (including your spouse’s plan or Medicare) or flexible spending account. ECU Health will make a quarterly matching contribution to your HSA in 2023: up to $600 for single coverage or up to $1,200 for “family” coverage, based upon your enrollment date. Note—coverage that takes effect Oct. 2, 2023 or later will not receive employer contributions for the 2023 year. Family coverage for this plan is defined as any coverage other than single.
Maximum contributions are set by the IRS. For 2023, the maximum contribution is $3,850 for single coverage, or $7,750 per household. An annual catch-up amount of $1,000 is available for team members ages 55-65.
HSA vs. FSA
To contribute to an HSA, you cannot maintain a Flexible Spending Account (FSA) except for a Limited Purpose Flexible Spending Account. If you are contributing to an HSA and you have a balance of $610 or less in your FSA as of Dec. 31, 2023, your account will be converted to a Limited Purpose FSA for 2024. Any amounts over $610 in your FSA as of Dec. 31, 2023 will be forfeited.
If at any point you change medical plans and are no longer enrolled in the Medical Savings Plan, you cannot continue to contribute to your HSA. However, you may still use any funds in your HSA to pay for qualified medical expenses.
The HSA is administered by WEX. You can connect to WEX at wexinc.com or call 866-451-3399. Remember your money is saved pre-tax, grows tax-free and is withdrawn tax-free. You own your HSA. Your account carries over from year to year and goes with you if you take a job with another employer. More information can be found on the WEX, IRS, or AskPhin websites.