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HSA FAQ's


New for Plan Year 2015, InHealth Mutual is offering High-Deductible Health Plans that qualify for Health Savings Accounts (HSA).

  • What is an HSA? A Health Savings Account (HSA) is a tax-advantaged savings account providing the following:
    • Tax advantage methods to fund out-of-pocket health expenses
    • Qualified medical expenses paid for on a tax free basis
    • Flexibility in account fund usage, which can be used for:
      • Deductibles and coinsurance directly related to a medical plan
      • Other qualified medical expenses
      • Retirement savings
  • What are the benefits from enrolling in an HSA Plan?
    • You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
    • Contributions to your HSA made by your employer (in-cluding contributions made through a cafeteria plan) may be excluded from your gross income.
    • The contributions remain in your account until you use them.
    • The interest or other earnings on the assets in the account are tax free.
    • Distributions may be tax free if you pay qualified medical expenses.
    • An HSA is “portable.” It stays with you if you change employers or leave the work force.
  • How do I set one up?
    1. Select a qualified high-deductible health plan (QHDHP) from InHealth Mutual. A QHDHP is required to open a Health Savings Account (HSA)
    2. Set up the HSA. Once approved for medical coverage, you can now open an HSA. Select which bank you want as your HSA administrator. The HSA administrator will need to receive an HSA enrollment application, a required initial deposit and a signature card.
    3. Start using your HSA account. Once the HSA is opened, you will receive a welcome kit. The kit includes a debit card that may be used to pay for qualified medical expenses. Check writing options are available with some banks. Visit each banks member website for more information about how to fully utilize your HSA.
  • What medical expenses can I pay with my HSA funds?
    The IRS determines what expenses qualify for payment with your HSA. The institution administering your HSA can provide a detailed list; however, a sample includes:
    • Health plan deductibles
    • Prescription drugs
    • Dental services, including braces, bridges, and crowns
    • Vision care, including glasses and Lasik eye surgery
    • Psychiatric and certain psychological treatments
    • Long term care services
    • Medically related transportation and lodging
  • How much can I contribute to an HSA? The IRS determines the minimum and maximum amounts you can contribute to your HSA each year. The IRS allows you to contribute the full annual maximum regardless of what month your coverage begins. Additionally, a one-time transfer of an HSA, Flexible Savings Account (FSA) or an IRA rollover is allowed. Generally, individuals age 55 to 65 can contribute an additional $1,000 per year above the annual maximum, according to a catch-up provision. More information is available in Publication 969 from the IRS.
  • How do I pay for expenses with my HSA?
    After visiting a provider, they will submit your claim to us. We determine if the bill meets your deductible and send you a claims statement (Explanation of Benefits) to tell you how much you have to pay. If there is a balance due, you can pay from your HSA using:
    • Your HSA debit card
    • A check from your HSA administrator
  • Who will administer my HSA?
    Your HSA will be administered by the financial institution you select or already have in place.

HSA FAQ's


New for Plan Year 2015, InHealth Mutual is offering High-Deductible Health Plans that qualify for Health Savings Accounts (HSA).

  • What is an HSA? A Health Savings Account (HSA) is a tax-advantaged savings account providing the following:
    • Tax advantage methods to fund out-of-pocket health expenses
    • Qualified medical expenses paid for on a tax free basis
    • Flexibility in account fund usage, which can be used for:
      • Deductibles and coinsurance directly related to a medical plan
      • Other qualified medical expenses
      • Retirement savings
  • What are the benefits from enrolling in an HSA Plan?
    • You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
    • Contributions to your HSA made by your employer (in-cluding contributions made through a cafeteria plan) may be excluded from your gross income.
    • The contributions remain in your account until you use them.
    • The interest or other earnings on the assets in the account are tax free.
    • Distributions may be tax free if you pay qualified medical expenses.
    • An HSA is “portable.” It stays with you if you change employers or leave the work force.
  • How do I set one up?
    1. Select a qualified high-deductible health plan (QHDHP) from InHealth Mutual. A QHDHP is required to open a Health Savings Account (HSA)
    2. Set up the HSA. Once approved for medical coverage, you can now open an HSA. Select which bank you want as your HSA administrator. The HSA administrator will need to receive an HSA enrollment application, a required initial deposit and a signature card.
    3. Start using your HSA account. Once the HSA is opened, you will receive a welcome kit. The kit includes a debit card that may be used to pay for qualified medical expenses. Check writing options are available with some banks. Visit each banks member website for more information about how to fully utilize your HSA.
  • What medical expenses can I pay with my HSA funds?
    The IRS determines what expenses qualify for payment with your HSA. The institution administering your HSA can provide a detailed list; however, a sample includes:
    • Health plan deductibles
    • Prescription drugs
    • Dental services, including braces, bridges, and crowns
    • Vision care, including glasses and Lasik eye surgery
    • Psychiatric and certain psychological treatments
    • Long term care services
    • Medically related transportation and lodging
  • How much can I contribute to an HSA? The IRS determines the minimum and maximum amounts you can contribute to your HSA each year. The IRS allows you to contribute the full annual maximum regardless of what month your coverage begins. Additionally, a one-time transfer of an HSA, Flexible Savings Account (FSA) or an IRA rollover is allowed. Generally, individuals age 55 to 65 can contribute an additional $1,000 per year above the annual maximum, according to a catch-up provision. More information is available in Publication 969 from the IRS.
  • How do I pay for expenses with my HSA?
    After visiting a provider, they will submit your claim to us. We determine if the bill meets your deductible and send you a claims statement (Explanation of Benefits) to tell you how much you have to pay. If there is a balance due, you can pay from your HSA using:
    • Your HSA debit card
    • A check from your HSA administrator
  • Who will administer my HSA?
    Your HSA will be administered by the financial institution you select or already have in place.