Set aside before-tax money to reimburse yourself for eligible medical expenses if you are enrolled in a high deductible plan. HSAs are more than a spending account for medical expenses; they are a great way to plan for the future.
NOTE: In response to the COVID-19 pandemic, the IRS and the CARES Act have changed some of the rules governing HSAs. The list of eligible expenses has expanded to include over-the-counter items. HealthEquity, the HSA administrator, has updated its expansive database of expenses that are allowed by both FSA and HSA participants. Search the database here.
At Stanford, the HSA works in conjunction with the Healthcare + Savings plan or the ACA Basic High Deductible plan. Unspent funds rollover each year; there is no “use it or lose it” rule as with health care flexible spending accounts (FSA). Use your HSA to pay for eligible expenses for you, your spouse or your dependent children – even if they aren’t covered on your health plan.
There are limits to what your family can contribute to HSAs each year, but not how much you can save in them over a lifetime.
When you enroll in the Healthcare + Savings Plan and have an HSA through Blue Shield’s financial partner Health Equity, you can setup payroll deductions for your contributions. Plus, Stanford will contribute to your HSA even if you don’t.
The university contributes $600 for employee-only coverage or $1,200 for family coverage.
Set contributions every year
Each Open Enrollment, you must actively elect your contribution amount for the following plan year as your election amount from the previous plan year will not automatically roll over. To recieve the university's contribution, you must make an HSA election (even if it's $0).
If you already have an HSA: You can still open one with HealthEquity and take advantage of the university contribution, so long as the total amount you contribute to all of your HSAs, plus any employer contributions, doesn’t exceed the annual contribution maximum (defined below).
If you are enrolled in the ACA Basic High Deductible Plan, Stanford will not contribute to your HSA.
|How to Enroll||
You can set up an HSA with any financial institution that provides HSA services.
With Health Equity: Health Equity is Blue Shield’s financial partner, so you can setup your account in the My Benefits portal when you enroll in an eligible health plan as a new hire, during Open Enrollment, or when you experience a qualifying life event. There are no set-up fees.
With any other financial institution: Setup your account as early as the effective date of your coverage. Your confirmation statement from the My Benefits portal is evidence of enrollment. There may be fees, minimum deposit or balance requirements depending on the bank.
|How it Works||
Examples of qualified health care expenses include:
2020 HSA Limits
+ $1,000 catch-up contribution if you are age 55 or older
These limits include any contribution amount you receive from your employer, as well as any contributions your spouse makes to another HSA.
|When Coverage Ends||
You own your HSA and it is yours when your employment ends. If you take a job elsewhere or retire but don’t have coverage under an HSA-eligible health plan, you can still use your HSA to pay for qualified medical expenses. However, IRS rules don’t allow you to deposit money into your HSA and receive tax benefits if you aren’t enrolled in an eligible health plan.
Once you retire, you can continue to receive tax benefits when you use the HSA for qualified medical expenses. After age 65, there is no penalty for withdrawing your money, even if you enroll in Medicare. You can use your HSA to pay your Medicare premiums, deductibles and copayments; after age 65 you may also withdraw money from your HSA for non-medical purposes without penalty, although it is treated as retirement income and subject to normal income tax.
Stanford and Health Equity have partnered to provide you many resources for your HSA online. Or call Health Equity at 877-857-6810.
If You Already Have an HSA
If you already have a personal HSA, you can still open one with HealthEquity. Just be sure the total amount you contribute to both accounts, plus Stanford's contribution, does not exceed the annual contribution maximum.