Health Savings Account (HSA)

A Health Savings Account, or HSA, is a custodial account established to receive tax-favored contributions on behalf of eligible active employees enrolled in a qualified high deductible health plan to pay for qualified medical expenses.

Not all employees will be better off with an HSA as compared with traditional low deductible or co-pay health plans. Those who are currently infrequent users of health care and/or have higher incomes and are looking for sheltered savings opportunities are likely to be the first to find HSAs attractive.

Eligibility

Regular faculty or staff members working 50% FTE or more are eligible to participate in the Health Savings Account (HSA) as long as the employee is enrolled in the WashU High Deductible Health Plan (HDHP), not covered as a dependent in a non-High Deductible Plan and not enrolled in Medicare, Tricare or have had VA benefits within the last three months. You cannot be enrolled in both a Health Care Flexible Spending Account and the Health Savings Account at the same time. 

Employee Contributions

The maximum annual contribution amount for 2024 is $4,150 for an individual and $8,300 for a family. HSA participants who will be age 55 or older in calendar year 2024 may elect to make an additional “catch-up” contribution of up to $1,000. Note: If you are covering a domestic partner and/or child of a domestic partner under the HDHP and are NOT covering your dependent child, you may only contribute up to the individual maximum annual contribution amount. Under IRS rules, if you are covering a domestic partner and/or child of a domestic partner under the HDHP, you cannot be reimbursed from your HSA for health care expenses incurred by your domestic partner and/or child of your domestic partner.

Important Note: If you’re approaching Medicare eligibility, it’s important to understand that you can no longer contribute or receive contributions to an HSA once you’re enrolled in Medicare. When you enroll in Medicare, Medicare coverage will be retroactive to six months prior to the month in which you applied for benefits, but no earlier than your first month of Medicare eligibility. The limit on HSA contributions is reduced by 1/12 for each month during the year that you are not eligible to contribute due to Medicare eligibility including any months of retroactive coverage. For example, if you apply for Medicare coverage in November and your coverage is retroactive to May 1, your HSA contributions would be limited to 4/12 of the annual limit. You should consider consulting with your tax or financial advisor if you will become eligible for Medicare during the year and are electing to make contributions to your HSA.

University Contribution

The university will contribute $500 annually to your HSA account if you are enrolled in individual coverage under the HDHP and you contribute a minimum of $200 per year. The university will contribute $1,000 annually to your HSA account if you are enrolled in family coverage under the HDHP and you contribute a minimum of $200 per year, with one exception. If you are covering a domestic partner and/or child of a domestic partner under the HDHP and are NOT covering your dependent child, the university will contribute $500 to your HSA.

The $500 university contribution reduces the maximum amount you may contribute to $3,650 for an individual and the $1,000 university contribution reduces the maximum amount you may contribute to $7,300 for a family. In order to receive the university contribution to the HSA, you must be enrolled in the HDHP and the HSA as of January 1st of the calendar year. The university’s contribution will be a one-time, lump sum deposit made in late January and available in the employee’s HSA no later than the first week of February. Note: If you participated in the Health Care FSA in the calendar year prior to enrolling in the HSA and you still have money in your Health Care FSA as of January 1, the university contribution will be delayed until April and available by the first week of May.

The university contribution can only be made to an HSA account with Optum Financial. If you elect not to open an HSA through Optum Financial, then you will not receive the university contribution.

WashU Couples: Both members of a WashU Couple may enroll in the HSA if they are each separately enrolled in WashU’s HDHP. Each member separately enrolled in the HDHP is eligible to receive the university contribution to the HSA applicable to their respective HDHP coverage level, provided they are making the minimum HSA contribution. The combined contribution elections made by the WashU couple cannot exceed the annual HSA contribution limit for family coverage.

Enrollment Period

Eligible employees may enroll and/or change their election at any time during the calendar year. Note: Your enrollment elections do not automatically carry over from year to year. You must re-enroll each year during open enrollment to continue your participation in this plan. 

Note: The university will pay the administration fees for all active employees and retirees with an HSA at Optum Financial. If an employee terminates employment before meeting the eligibility requirements for retirement, the fees will be the responsibility of the employee.

Effective Date

Benefits eligible rehires and new hires become eligible for coverage on their date of hire. Changes made during the year will be effective as of the date the change is made. Changes made during the annual Open Enrollment period in November are effective January 1 of the subsequent year.

Filing Claims with Optum Financial

Eligible employees who enroll in the HSA will receive a healthcare payment card that they can use at the pharmacy, their doctor’s office, or at other health, dental or vision care providers. Enrolled employees may also use Optum Financial’s online and mobile Bill Pay Option, through which they can request a withdrawal from their HSA, payable either to themselves or to their health care provider.

Helpful Links

• Get to Know the HSA (PDF)
• High Deductible Health Plan and Health Savings Plan FAQs (PDF)
• Managing your HSA: Helpful Online Tools (PDF)
• HSA Qualified Medical Expenses (PDF)
• IRS Publication 969