Health Savings Account (HSA)

When you enroll in the U-M Consumer-Directed Health Plan (CDHP), must also enroll in a Health Savings Account (HSA). An HSA is an account where you put money away for future health-care costs while saving on taxes.

HSAs are never taxed at a federal income tax level when used for qualified medical expenses. Contributions can come straight out of your paycheck, and your HSA can grow tax-free, too. Once you have more than $1,000 in your HSA, you can begin investing, if you like.

To change your elections, go to the HSA Election eForm.

To learn more about Health Savings Accounts, visit the University of Michigan-Health Equity web page.

Additional Information

Summary of Benefits

Pre-tax savings to pay for eligible medical expenses.
Create a health-care emergency safety net.
No "use-it-or-lose-it rule"; HSA funds never expire, even if you change health plans or employers, or retire.
Members own HSA funds and control how balances are used.
IRS rules do not allow you to enroll in an HSA and a Health Care Flexible Spending Account (FSA) at the same time, but you can enroll in a Limited Purpose FSA, which allows you to use pretax dollars toward vision, dental and orthodontic expenses.
Contribute to investment options of your choice using investment products and brokerage accounts, or through the HealthEquity enhanced rate program. For more information, view the HSA Investment Guide.

2026 Health Savings Account (HSA) Contributions
HSA Contributions	Individual	Family
University HSA Contribution	$850 ($70.83 per month)	$1,700 ($141.67 per month)
Employee Minimum Contribution	$120 ($10 per month)	$120 ($10 per month)
Annual HSA Contribution Maximum (university and employee contribution)	$4,400	$8,750
HSA Catch-up if 55+ Years of Age	$1,000	$1,000

The maximum employee contribution is the annual HSA contribution ($4,400/$8,750) minus university contribution ($850/$1,700). Employees 55 and older get an additional $1,000.

Additional HSA Notes

The HSA is managed by HealthEquity, a health savings company. Learn more about how HSAs work, including what qualifies as a medical expense, by visiting the HealthEquity website.
U-M will contribute to the HSA established under the University of Michigan only.
Over-contributing to an HSA account will require the U-M HSA enrollee to contact HealthEquity directly at (877) 284-9840. Ask the HealthEquity representative about completing an "HSA Excess Contribution Removal Form." You may also complete this form on the HealthEquity website or through the HealthEquity mobile app.
A Health Savings Account is a bank account.
- In compliance with the U.S. Patriot Act, HealthEquity HSA is required to verify the legal identity of the account holder.
- HealthEquity follows the Customer Identification Program (CIP) process to verify your identity.
- As part of this identity verification process, employees may be asked to provide additional information and/or documentation before the HSA can be established.
- Additional information can be viewed on the HealthEquity website.
- After passing the Customer Identification Program (CIP), employee and university contributions will begin the first of the following month. Any missed university contributions will not be made up; however, the employee contributions can be.

Plan Contact Information

healthequity.com

877-284-9840

HR Communications

Health Savings Account (HSA)

Additional Information

Stay informed with UHR News