Business Services: Health Savings Account
A Health Savings Account (HSA) allows you to deduct money from your payrolls pre-tax to deposit into a savings account. These funds are available for out-of-pocket, qualified health-related expenses. Like traditional savings accounts, interest accrues on the balance but unlike traditional savings accounts, the interest isn’t taxable!
HEALTH SAVINGS ACCOUNT OVERVIEW
To enroll in the HSA or to if you would like to continue contributing to your MBO HSA in 2020, you must take the following steps:
- Read and complete the HSA Enrollment Form.
- Return the completed form to MBO by fax (703-793-6070) or send directly to your MBO contact.
- MBO will set up your account with WageWorks and begin withholding your payroll contributions.
- You will need to complete your account setup by either calling WageWorks at 1-877-924-3967 or logging into your WageWorks Account.
What are the benefits of an HSA?
- HSA funds are deducted from payroll on a pre-tax basis
- HSA funds never expire
- An HSA account is portable and goes with you wherever you go, even if you leave MBO
- The HSA is an FDIC-insured account, which accrues interest
- Withdrawals are tax-free when used on eligible healthcare expenses
- HSA funds in excess of $1,000 are eligible for investment options similar to 401(k)s
If you have additional questions, refer to our HSA FAQs.
How do I qualify for the HSA?
- You must be enrolled in a High Deductible Health Plan (HDHP)*, like MBO’s Aetna MedSure plan, in order to open an HSA.
- You do not have to be enrolled in the Aetna MedSure plan to take advantage of the HSA offering through MBO.
- However, you will be asked to certify that you are covered by another HDHP prior to completing your enrollment.
- In addition to being enrolled in an HDHP, you must also meet MBO’s full-time eligibility requirements to open the HSA.
*An HDHP is defined as having an annual deductible of at least $1,400 for individual coverage and $2,800 for family coverage. An HDHP’s out-of-pocket limits cannot exceed $6,900 for individual coverage or $13,800 for family coverage.
Special Note: In addition to the Aetna MedSure plan, MBO also offers a Fixed Indemnity Benefit Plan. Enrollment in a Fixed Indemnity Benefit Plan disqualifies you from enrolling in the HSA. Consult your MBO contact if you have additional questions.
How much can I contribute to the HSA?
MBO has partnered with WageWorks for our HSA administration. All HSA participants may contribute up to the legal limit in 2020:
|HDHP Coverage Level||2020 IRS Contribution Levels|
|Under Age 55||Age 55 and Up|
What healthcare expenses are eligible for reimbursement through the HSA?
Expenses such as doctor visits, prescriptions, chiropractic care, dental expenses, eyeglasses and contacts, and certain cosmetic procedures are just some of the expenses you can pay for using HSA funds. WageWorks has provided a searchable table of all HSA expenses as well as the required documentation for reimbursement.