Health Savings Account (HSA)
USBank Contact Information
- Website – www.mycdh.usbank.com
- Customer Service Toll Free – 877-470-1771
- Customer Service Email - firstname.lastname@example.org
USBank Participant Portal Overview
HSA Rules for Dependents Under Age 26
While the Patient Protection and Affordable Care Act of 2010 (PPACA ) allows parents to add their dependent children (up to age 26) to their health plans, the IRS has not changed its definition of a dependent for health savings accounts. This means that a person could have their 25-year-old child covered on their HSA -qualified high-deductible health plan, but not be eligible to use their HSA funds to pay for medical bills for that 25-year-old. Reimbursements issued in violation of this rule will be taxed and could be subject to the 20% HSA penalty for an early withdrawal. For all HSA plans, group or individual, the IRS definition of a dependent is used when determining whether a dependent qualifies and how benefits are administered for dependents. The account holder must be able to "claim" the child/relative as a dependent on their tax return, and if they cannot, they are not allowed to spend HSA dollars on services provided to that child/relative. The IRS defines a qualifying child dependent as follows:
- Daughter, son, stepchild, sibling or stepsibling (or any descendant of these)
- Has same principal place of abode for more than one-half of taxable year
- AND not yet age 19 (not yet age 24 if student)
- OR permanently and totally disabled.
Resources for more HSA Information:
- Frequently Asked Questions about an HSA: www.mycdh.usbank.com/faq.html
- You can find a list of eligible expenses for using your HSA dollars: http://healthcare.usbank.com/files/content/files/213d_eligible_expense_list.pdf
- Interactive video on HSA’s: http://myusbankhsa.learncdhc.com/
- IRS Publication 502: Medical and Dental Expenses is a guide explaining eligible expenses for FSAs, HRAs, and HSAs: http://healthcare.usbank.com/files/content/files/p502_-2010.pdf
- IRS Publication 969: Provides a guide to HSA and other tax favored health plans: http://healthcare.usbank.com/files/content/files/p969_-02010.pdf
IMPORTANT - You are NOT eligible for Plan C with a Health Savings Account (HSA) if any of the following IRS Guidelines apply to you:
- You are enrolled in Medicare.
- You are covered by another health plan that is not a Qualified High Deductible Health Plan.
- You are enrolled in the standard Health Care Flexible Spending Account (HCFSA) . For those currently enrolled in a HCFSA with a grace period, like the one offered to State employees, you may enroll in and start contributions to the HSA effective January 1, 2014 if there is a zero balance in your HCFSA account as of December 31, 2013. If there is a balance in your HCFSA, you may enroll in Plan C effective January 1, 2014, but no contributions will be made to your HSA until the 1st of the month following the completion of the plan’s FSA grace period.
- You are covered by TRICARE and TRICARE for Life.
- You are covered by Veterans Administration (VA) benefits and have used the VA medical services within the three-month period immediately preceding your enrollment in Plan C (excluding check- ups and immunizations).
- IRS Publication 502 outlines eligible expenses for HSA and FSA plans
- IRS Publication 969 outlines the requirements of an HSA
Through the HSA, you can set aside pre-tax money to pay for certain eligible health care expenses for yourself, your spouse or your dependent children. Here are a few examples of the types of expenses that are considered qualified medical expenses for HSAs:
- Medical, dental and drug deductibles and coinsurance
- Dental and vision expenses
- Over-the-counter medications, such as aspirin, cold medicines, antacids and cough supplements with a prescription from a doctor
- Contact lens solution or cleaners
- Long Term Care premiums
Both you and your employer contribute money to the Health Savings Account (HSA). The maximum annual contribution to an HSA for 2014 is $3,300 for single coverage and $6,550 for dependent coverage. These maximums apply to the sum of you and your employer’s contributions, so your maximum annual contribution for 2014 is $1,800 for single coverage and $4,300 for dependent coverage. Members age 55+ can make additional “catch up” contributions to their HSA each year until they enroll in Medicare. The additional catch-up contribution for 2014 remains at $1,000.
The banking institution will mail you an HSA debit card and account number that you may use to set up your online account access where you may view your account activity and learn more about your account and investment options. It is very important to log on to your account online and accept the “Terms and Conditions” of the account in order to have access to funds.
Your HSA belongs to you and is “portable” which means that even if you leave your employer, you take your account with you and can use it to pay eligible medical expenses. Since the account belongs to you, you are responsible for the account investments and fees, so be sure to review the HSA investment options and fees that apply.