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Health Savings Accounts (HSA)

Health Savings Account Account (HSA)

A healthHealth savingsSavings accountAccount (HSA) is available to employees enrolled in the Health Savings Plan.Plan and allows you to save and grow savings tax-free for medical expenses.

The HSA is administered through OptumConnectYourCare, Financial.where  Youyou maycan checkmanage your account and submit expensesclaims online online. here.

To be eligible for the HSA, you must be enrolled in the Health Savings Plan.

Here’s how the Health Savings Account works:

  • Once enrolled in the Health Savings Plan, you will be eligible to open a Health Savings Account.
  • You’ll receive a debit card to pay for your eligible healthhealthcare care expenses, along with detailed information about the account.expenses.
  • You can havecontribute pre-tax contributionsdollars deducteddirectly from your paycheck and deposited into your HSA.paycheck.
  • MoneyFunds inroll over each year — your HSA money is yours -to keep, even if you don’tchange usejobs youror entire balance during the year, it will roll over to the next year.retire.

What is a Health Savings Account?

A Health Savings Account (HSA) is a type of personal savings account you can set up to pay certain health care costs. An HSA allows you to put pre-tax money away to pay for qualified medical expenses, like deductibles, copayments, coinsurance, and more. With an HSA-eligible plan, the monthly premium is lower, but you pay more out-of-pocket health care costs yourself before your plan starts to pay its share.

How much can I contribute to my HSA?

The2026 annualIRS maximumMaximum contributionContribution forLimits

individual
    coverage
  • Individual isCoverage: Up to $4,150.400
    • The
  • Family maximumCoverage: contributionUp for family coverage isto $8,300.

    750
  • Age 55 or older: Additional $1,000 “catch-up” contribution

How is an HSA different from an FSA?

  • FSAs and HSAs both offer tax benefits and have annual contribution limits.
  • Funds in an HSA roll over year to year. There is no “use it or lose it” rule.
  • FSAs are "use it or lose it." That means you'll lose any funds you don't spend by the end of the grace period.
  • You can use your FSA to cover eligible healthcare costs at the start of the year. The entire amount is available on day one.
  • With the HSA, you cannot spend more than the funds deposited in your HSA. However, you can save receipts for qualified medical expenses and file for reimbursement after your balance has grown.
  • You can't contribute to an HSA and an FSA in the same year.

Do I have to contribute to my HSA?

No. You are not required to contribute to the HSA.

Does Arkansas State University contribute to my HSA?

ASU System will contribute $500 for employee coverage or $1,000 for family coverage if you are enrolled in the Health Savings Plan with Health Savings Account. Half of these health plan contributions will be deposited into the HSA in mid-January,January and half will be deposited in mid-August. Contributions for employees hired Jan. 1 -– July 31, 202531, will be $250 for individuals and $500 for families. Employees hired Aug. 1 -– Dec. 31 will not receive a contribution.

What happens to the money in my HSA if I leave Arkansas State University?

If you leave Arkansas State University, you won't lose your HSA. Your HSA and its funds, including the funds your employer contributed, are owned by you.

Can I contribute to an HSA and also enroll in the healthcare Flexible Spending Account?

No. You're eligible to contribute to an HSA only if you are enrolled in the Health Savings Plan. If you are enrolled in the Classic or Premier Plan, you are eligible to contribute to the healthcare FSA.

Can I use the money in my HSA for eligible dependents even if they are not covered by my insurance Plan?

Yes, you may use the money in your HSA to pay your spouse's or other eligible dependent's eligible expenses.

Additional information regarding Health Savings Accounts (HSA) is available through the ASU System Benefits Page.  

 

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