Health Savings Account (HSA)

• Segal contributes to your HSA.  Segal will contribute $700 for Employee only coverage; $1,400 for Employee Plus One or Employee Plus Family coverage on a per-pay pro-rated basis.

• Use your HSA to pay for your deductible or for other qualified, out-of-pocket expenses—even into retirement.

• There’s no “use it or lose it” rule. Unused money in your HSA rolls over each year and is never forfeited. There's no limit to how much you can roll over—those dollars can be used to cover medical expenses now or in the future.

• You own your HSA. The money in your account is always yours, and you may use it as soon as it is deposited. Even if you change health plans, or jobs, or if you retire, you can take the account with you.

• Segal contributions are immediately vested—that is, they are yours to use as soon as they are deposited into your account. 
  

• Your account is an interest bearing cash account.  You can invest your account once your account balance is at least $1,000 in any of the investment options offered through WEX. 

• You can also make contributions directly to your account, subject to annual IRS limits. 

• You can change your HSA pre-tax payroll contribution amount during the year in HRConnect. This allows you to adjust your contributions based on your situation.

• The HSA offers you a triple federal tax advantage. You pay no taxes on:
  • Segal's contributions or your pre-tax payroll contributions,
  • Interest and investment earnings on your account balance, or
  • Money you use to pay for eligible medical expenses.

Eligible HSA contributions are subject to state income tax if you live in certain states. Also note that some states may tax investment earnings. Please consult a tax advisor for details.

Health Savings Accounts for those who are Medicare Eligible (Age 65+)

Here are some important facts to consider as you approach Medicare eligibility. Once you are enrolled in Medicare, you are no longer eligible to make contributions to your HSA. If you’re eligible for Medicare but do not enroll in Medicare Part A, B or D, you can still contribute to your HSA.

Medicare Part A

• If you enroll in Medicare Part A, you are no longer eligible to make contributions to your HSA and Segal is not allowed to make employer contributions into your HSA.
• The maximum annual HSA contribution and catch-up contribution amounts need to be prorated (employee and Segal contributions combined) in the year in which you turn age 65, if you enroll in Medicare Part A. The month that you turn 65, your Part A coverage starts retroactively to the first day of that month, so do not count that month in your proration for HSA contributions.
• If you sign up for Social Security benefits, you’re automatically enrolled in Medicare Part A.
• You can waive Medicare Part A:
  • You typically need to go to the Social Security office in person.
  • If you have received any Social Security retirement benefits and you waive Medicare Part A, you need to pay back all the Social Security retirement benefits you have received.
  • If you waive Medicare Part A and then later want to enroll (for example, when you retire), your Part A coverage will start retroactively six months prior to your requested Part A election date. Any deposits you or Segal made into your HSA account during that six month period will become subject to tax and penalty.
  • Visit: http://www.socialsecurity.gov/ for current details.

Eligibility to contribute to an HSA if your Spouse is under 65

If you are not allowed to make contributions to your HSA due to Medicare enrollment, you may be able to make deposits into your spouse’s HSA if:

• You are legally married.
• Your spouse is covered on an HSA qualified medical plan (either through your Segal plan, or some other HSA qualified plan).
• Your spouse is not covered under any non-HSA qualified plans.

You will only be allowed to deposit after-tax funds into your spouse’s HSA bank account up to his/her annual allowed maximum. The tax deduction would be taken later when filing taxes for that year. Segal is never allowed to deposit employer funds into a spouse’s HSA.

Eligibility to contribute to an HSA when your spouse turns 65

Your spouse’s enrollment in Medicare doesn’t provide coverage for you, so you remain eligible to contribute to your HSA as long as you aren’t covered by a non-HSA qualified plan, including not being enrolled in Medicare. Your spouse’s qualified medical expenses are still eligible for reimbursement from your HSA even though your spouse is enrolled in Medicare.

Using existing HSA Funds at age 65

After Medicare enrollment you can use your existing HSA funds to pay for Medicare and IRS approved health insurance premiums (including Segal sponsored health insurance).

Once you are age 65, you may withdraw funds from your HSA without penalty. Distributions remain tax deductible if they’re used to pay for qualified medical expenses.

Once you enroll in Medicare, you can use HSA distributions to pay for Medicare Parts A and B, Medicare Advantage plans (Part C), and Medicare prescription drug plans (Part D) premiums. You cannot use HSA distributions to pay for Medicare supplemental policies or Medigap.

• If you have an HSA (either Employee-only coverage or Employee Plus One/Family), your spouse may also have an HSA (of either coverage type) through his/her own employer or bank. 
• If you and your spouse both have an HSA (of either coverage type), your combined contributions cannot exceed the Employee Plus One/Family limit, or $8,300.

You can withdraw funds from your HSA at any time to reimburse part or all of your eligible expenses, including deductibles, prescription drug expenses, copays and coinsurance. To do this...

• Use your WEX card at participating providers for eligible expenses. At an in-network provider's office, always show your Aetna ID card first to ensure that you get the in-network discount.

• Use your HSA to reimburse yourself for eligible expenses you pay out of pocket.  

• Pay your provider online from your HSA through www.wexinc.com
  
  • Be sure to review EOBs for accuracy.
  • You'll receive more information about paying for medical expenses after you enroll in the Aetna HDHP with HSA.
    

• Check balances and account information via the WEX Member Website or through your mobile device 24/7.
• Remember, unused funds will roll over year to year.

If you leave Segal and no longer participate in an HDHP, you can: 

• Keep your HSA with WEX. You can continue to withdraw funds to pay for eligible expenses. Your account will continue to earn interest/remain invested. However, you cannot make additional pre-tax contributions.
  • You will be billed for administrative fees. 

• Close your HSA and receive any remaining funds. You may be subject to taxes, including an additional 20% tax penalty. 

• Transfer your HSA balance to a new HSA administrator with no tax implications. 
  • If you don't transfer your HSA balance, you will be billed for administrative fees. 

If you use your HSA for non-qualified expenses, your HSA will be taxable. Plus you'll be required to pay a 20% penalty if you make the non-qualified withdrawal before age 65.