What is the FSA? Does it have anything to do with the HSA or HRA?
The HealthCare FSA is a tax-free account that allows a person to pay for essential health care expenses that are not covered or are partially covered by your medical, pharmacy, dental and vision plans. For more information regarding the FSA contact HealthSCOPE Benefits at 1-888-763-8232, press 2 then press “#” then press 3#. The FSA...Read more
If I use funds from my HSA for medical expenses, can I claim them as a deduction on my income tax?
No. Since eligible expenses are paid with tax-free dollars from your HSA, you cannot claim the same expenses on your income tax return.Read more
How are HSA withdrawals monitored? Is there an expense verification process like an FSA or HRA?
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes. You are also responsible for saving all receipts as verification of expenses in the case of an IRS audit.Read more
If I am enrolled in single coverage under the CDHP, can HSA funds be used for my spouse or eligible dependents that are not covered under my health plans?
HSA funds can be used for you, your spouse, or eligible dependents (as identified on your Federal tax return) even if they are not covered under your CDHP coverage.Read more
What happens if I use my HSA funds for ineligible expenses?
An HSA allows you to withdraw funds for any reason. However, you would need to pay ordinary tax and an additional penalty of 20% on any funds that are withdrawn for an ineligible expense. You are responsible for determining if an expense is an eligible medical expense and maintaining receipts for tax reporting and potential...Read more
What happens to my HSA funds when I retire?
HSA funds are portable. At retirement, you will retain any funds in your HSA. You may also continue to use HSA money to pay for out-of-pocket health care expenses.Read more
What happens to my HSA if I am no longer an eligible individual? For example, if I change coverage from the CDHP to an HMO or EPO or if I enroll in Medicare?
If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. However, you can no longer contribute money to your HSA.Read more
Do I need to be a United States citizen to open and contribute to an HSA?
In general, you must be a United States citizen, green card holder, or a United States resident to participate. An HSA cannot be opened without a verifiable United States residential address and a valid United States Social Security Number.Read more
What is the “Last-Month Rule” as it pertains to an HSA?
The Last-Month Rule states that if you are covered by an HSA-eligible health plan on the first day of the last month of a given year, you are considered an eligible individual for the entire year. In turn, you can then contribute to the HSA for that full year. Example: If you enrolled in the...Read more
My spouse is a state employee with an HRA. I am a new employee and plan to enroll in the CDHP with an HSA, am I eligible to contribute to an HSA?
If your spouse has an HRA, you are disqualified from establishing and/or contributing to an HSA per the IRS.Read more