Health Savings Accounts

The High Deductible Health Plan (HDHP) is paired with a Health Savings Account (HSA) to save pre-tax money from your paycheck for out-of-pocket medical expenses now or in the future. Money in the savings account grows tax free year to year and is yours to keep. Plus, eligible accounts earn a tax-free employer contribution.

Plan Highlights

  • Contribute up to the IRS limit – this includes all contributions made by you and contributions made by Carle Health. And, if you're between 55 and 65 years old you can contribute up to an additional $1,000 per year.
  • Employer contribution – Eligible employees get a $250 contribution in the year's first quarter. Mid-year enrollees receive a prorated contribution.
  • Use to pay for expenses not covered by health or dental plans – medical care, tests and other health services, prescription drugs
  • Triple Tax Advantage – Contributions and withdrawals to pay deductibles and qualified medical, dental and vision expenses are never taxed. Interest and any investment growth is tax free if used to pay for qualified medical expenses.
  • You can take money out for non-medical purposes with a 20 percent tax penalty.
  • No deadlines – There's no cut-off for when eligible expenses can be paid through a HSA as long as you're enrolled.
  • No reimbursement forms to submit at the time funds are used – you're responsible for maintaining all records and receipts to track that distributions are made for qualified medical expenses.
  • Unused money in the HSA can be carried over year to year and continue to grow in the account so you can save money for future expenses.
  • The account is individually owned by you and can be taken with you if you leave Carle Health.

 This plan may be right for you if:

  • you're participating in a HDHP with HSA and your spouse doesn't have a Medical Flex Spending account.
  • you want the option to change your monthly contributions throughout the year.
  • you're comfortable having only what's been contributed to date available for expenses.
  • you like knowing up front what the maximum expense is going to be under the HDHP with HSA and can plan to save accordingly.
  • you want the advantage of current and future tax savings.

 Good to Know