A Health Savings Account (HSA) lets you put money away for future health care costs while saving on taxes. When you enroll in the CDHP, you're eligible to also enroll into an HSA. 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. If you would like, once you have more than $1,000 in your HSA, you can begin investing.
To learn more about Health Savings Accounts, visit learn.healthequity.com/umich.
Benefits of Enrolling in an HSA
- 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, employers or retire
- Member owns HSA funds and controls 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.
| HSA Contributions | Individual | Family |
|---|---|---|
| University HSA Contribution | $800 ($67 per month) | $1,600 ($133 per month) |
| Minimum Contribution | $120 ($10 per month) | $120 ($10 per month) |
|
Annual HSA Contribution max (university and employee contribution) |
$4,150 | $8,300 |
| HSA catch-up if 55+ | $1,000 | $1,000 |
Maximum employee contribution is the Annual HSA Contribution ($4,150/$8,300) minus university contribution ($800/$1,600). Employees 55 and older get an additional $1,000.
| HSA Contributions | Individual | Family |
|---|---|---|
| University HSA Contribution | $825 ($68.75 per month) | $1,650 ($137.50 per month) |
| Minimum Contribution | $120 ($10 per month) | $120 ($10 per month) |
|
Annual HSA Contribution max (university and employee contribution) |
$4,300 | $8,550 |
| HSA catch-up if 55+ | $1,000 | $1,000 |
Maximum employee contribution is the Annual HSA Contribution ($4,300/$8,550) minus university contribution ($825/$1,650). Employees 55 and older get an additional $1,000.
Please note:
- 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.
- 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 found 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