A Health Savings Account (HSA) allows you to make tax-free contributions to build up protection for current and future health care expenses for you and your dependents.
The Health Savings Account is only available to employees enrolled in the Aetna High Deductible Health Plan (HDHP).
If you newly enroll in the Aetna HDHP, you can receive up to $900 annually (for Employee Only/Employee & Child coverage) and up to $1,800 annually (for Employee & Spouse/Family coverage) into a Health Savings Account.
Here's How It Works
- Broward Health will automatically set up a Health Savings Account for employees enrolled in the Aetna HDHP.
- For employees who newly enroll in the Aetna HDHP, Broward Health will contribute $500 to the HSA (for Employee Only/Employee & Child coverage) and $1,000 to the HSA (for Employee & Spouse/Family coverage) for the initial enrollment only.
- In addition, Broward Health will contribute $300 (for Employee Only/Employee & Child coverage) and $600 (for Employee & Spouse/Family coverage) if the plan members receive a routine annual physical or well visit exam, and an additional $100 each (Employee or Spouse) for completing a Health Risk Assessment for employees newly enrolled and re-enrolling in the Aetna HDHP. The funds will be posted to your HSA after Broward Health receives a confirmation report from Aetna.
- You can also contribute additional money to your HSA, not to exceed the IRS maximum for the Calendar Year. For 2024, contributions cannot exceed $4,150 if you are enrolled with Employee Only coverage and $8,300 if you are enrolled with Employee & Spouse, Employee & Child(ren) or Family coverage. HSA participants who are age 55 or older can contribute an extra $1,000. NOTE: IRS maximum includes both employee and employer contributions.
- These funds can be utilized at any time for qualified health care expenses like doctor’s visits, hospital services, or other eligible out-of-pocket medical costs. Even better, if you don’t spend all the money in 2024, you can roll-over these funds to the following year, giving you even more money to assist you with health care costs in the future. The less you use, the bigger your account gets.
- This account and available funds are yours to keep, even if you leave Broward Health. This gives you a head start on creating a nest egg for potentially large medical expenses that might come down the road.
Triple Tax Advantage of an HSA
- All contributions into your HSA are made before income taxes are calculated. That means you don’t pay income tax on the company’s contribution or the contributions you make into the account.
- There is no tax on the interest that accrues in the account.
- You pay no taxes on the funds you use to pay for eligible medical expenses.
Keys to Growing Your HSA
- Try not to use your Health Savings Account for routine expenses. If you can pay out-of-pocket, leave your HSA funds alone so that they can grow for when you need them in the future. Remember, the money in your HSA is yours, it is your personal or joint account. You keep it if you don’t spend it.
- Consider supplemental medical coverage such as Accident, Critical Illness, and Hospital Indemnity Insurance so that unexpected injuries or illnesses don’t wipe away the money in your HSA.
- Monitor your fund’s growth. Just like the 403(b) Plan, your HSA funds can earn interest through investments. Make sure your money is growing at an acceptable and safe pace.
