Health Savings Account (HSA)

Participants enrolled in the Tiered Plan or One Step Plan may open a tax-advantaged HSA. This account helps you save money from your paycheck for eligible health care expenses. Because money is saved before taxes, you save money on what you would have paid in taxes.

You can use this account to cover qualified medical, dental and vision costs, such as copays, deductibles and prescriptions. Visit optumbank.com or call 866-234-8913 for a full list of qualifying expenses and eligibility rules. Employees that enroll in the HSA for the first time will receive a debit card from Optum Bank to pay for eligible expenses.

Eligibility requirements:

  • Must be enrolled in the Tiered or One Step medical plan
  • Must not be enrolled in Medicare
  • Must not be covered by other medical insurance
  • Must not have received VA medical benefits at any time in the past three months
  • You and your spouse are not contributing to/participating in a general-purpose FSA through his/her employer

Key Advantages

  • It's flexible: Use your HSA now, or save it for later. You decide when to save and when to spend. You can even save for health care expenses after you retire.
  • No “use it or lose it” rule: The money in your HSA belongs to you. It rolls over each year and you can take it with you if you ever leave the company.
  • It’s triple tax-advantaged (applies to federal and most state taxes):*
    • Pay no taxes on money you contribute.
    • Pay no taxes on interest you earn.
    • Pay no taxes when you withdraw money.

* Federal tax savings regardless of your state of residence. State tax savings not available in every state (i.e. CA, NJ). Consult a tax professional for tax-related questions.

  • Invest your account: Once your account balance reaches $2,000, you can choose to invest it in a variety of mutual fund investments.

Each year, the IRS sets a maximum contribution amount. In 2026, the total in your account cannot exceed:

  • Individual: $4,400
  • Family: $8,750
  • Catch-Up Contribution: If you’re age 55 or older, you may contribute an additional $1,000