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As health care costs continue to increase, many people enrolled in high-deductible health plans are considering a new, tax-advantaged way to help save and pay for these costs. Health Savings Accounts (HSAs) offer the tax advantages associated with Flexible Spending Accounts (FSAs), Health Reimbursement Accounts (HRAs) and other health care accounts but can provide even more value. An HSA gives you the freedom to spend the money you save as you choose. Your HSA is your account. You own it. You can fund it. And you can continue to use it even if you switch employers or health plans.
What makes an HSA different?
Your Health Savings Account funds can be:
- Non-taxable when used to reimburse qualifying health expenses
- Accumulated for future health expenses
- Maintained as you move from one job to the next
- Available to spend on non-health purposes on a taxable basis, plus an additional tax
- Supplemented by your employer, based on your plan design, by a family member, or by any other person.
How Your HSA Works
Contributions you make to your HSA are tax-deductible. Funds you withdraw to pay for qualified medical expenses, as defined by Section 213(d) of the IRS Tax Code, are tax-free. A list of these expenses is available on the IRS Web site, irs.gov, and you can view a sample list of eligible/ineligible expenses in the IRS Contribution and Deductible Guidelines section on this site. If you use your HSA funds to pay for non-health related expenses, the amount will be taxable and you will pay an additional 10 percent additional tax. The additional tax does not apply if you are over age 65, disabled, or deceased, but gross income tax applies. Your medical plan materials provide you with the exact contribution amounts your plan allows.
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About Your Account
Your HSA funds are deposited in a custodial account at OptumHealth Bank, a leading administrator of Health Savings Accounts. OptumHealth Bank is FDIC-insured and will service your account. With expertise in health care and financial services, OptumHealth Bank is uniquely positioned to offer Health Savings Accounts partnered with high-deductible health plans. HSA funds deposited at OptumHealth Bank earn a competitive interest rate.
Contribution Guidelines
Please refer to the IRS Contribution/Deductible Guidelines section of this site for the specific dollar amount you may contribute during the plan year.
Once you are no longer covered by a high-deductible plan, you cannot continue to make contributions; however, the money in your HSA is yours to keep at OptumHealth Bank or to transfer to another qualifying account. If you choose to withdraw money from your account with the intent to transfer it to another qualifiying account, you must complete the transaction within 60 days of the withdrawl. Additionally, this may only be done one time each year.
Making Contributions
You can make contributions to your HSA:
- By mailing a deposit with a contribution form found at the bottom of this page or at OptumHealthBank.com.
- Through payroll deduction - if your employer offers this option for your HSA, you can request that your employer deduct a set amount from your paycheck
Save Your Receipts
Save your supporting documentation when you withdraw funds. You are responsible for verifying qualified health care expenses, as defined by Section 213(d) of the IRS Tax Code. If you are ever audited, the IRS may require you to provide documentation for your withdrawals. Any expenses that do not fall within IRS guidelines will be considered taxable, and the appropriate tax rules will apply.
Withdrawing Funds
You can withdraw funds:
- With your Health Savings Account CardSM
- At any ATM displaying the MasterCard logo
- By filling out a form and sending it to OptumHealth Bank for an electronic fund transfer into your checking or savings account. You can download the form found at the bottom of this page or at OptumHealthBank.com.
Account setup fees, maintenance fees, ATM withdrawal fees and all other fees are included in the HSA Schedule of Fees and Charges. OptumHealth Bank will provide online monthly statements detailing your account balance and activity. If you prefer to have statements mailed to your home, simply notify OptumHealth Bank. You can opt-out of electronic statements at OptumHealthBank.com.
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How Your HSA Works With Your Health Plan
While you are contributing to your HSA, you have a high-deductible health plan that provides coverage for health care services for you and your covered dependents. The plan has a high deductible and a maximum out-of-pocket amount that meets the government requirements regulating HSAs. Your specific plan design, deductible and out-of-pocket amounts are provided in your health plan information.
HSAs offer a variety of versatile, user-friendly features:
Control: You own the funds in your account from day one. You decide when and how to spend them.
Flexible funding: Your account can be funded through employer contributions*, salary reduction and/or tax-deductible contributions. Unlike other types of tax-advantaged accounts, family members and others can make contributions to your account.
No more use-it-or-lose-it rule: Accumulate funds in your tax-exempt account. The funds are there when you need them-now or in the future.
Portability: Take your account with you wherever you go. The funds you accumulate can help you plan for retirement. From age 55 up to when you enroll in Medicare, you can make additional contributions to maximize your tax advantages and set aside the money you need.
Expanded use of funds: You can use your HSA dollars for all eligible medical expenses on a tax-free basis. You can also use your money for non-health expenses on a taxable basis, including an additional 10 percent tax.
Health premium coverage: Your HSA can be used to fund certain health coverage premiums (COBRA, long-term care and coverage while receiving unemployment compensation) in addition to eligible out-of-pocket health expenses.
Convenient access to funds and account information: You can access your HSA funds easily with your Health Savings Account MasterCard® Debit Card. Find important account information online at OptumHealthBank.com.
*Please check your plan materials to determine whether your employer will be making supplemental contributions to your account.
For more information about HSAs download our HSA Consumer Guide.
 HSA_Consumer_Guide.PDF (753.79KB)
Use the HSA Employee Contribution Form along with your deposit to make a contribution to your HSA.
Contribution_Deposit_Form.PDF (35.11KB)
Download an OptumHealth Bank HSA application and mail or fax to open an account now.
HSA Application.PDF (1.3 MB)
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