Health Savings Account (HSA)
Stay on top of medical expenses by paying with pre-tax dollars.
Saving pre-tax money for medical expenses is one of the best tricks to keeping your costs down. If you’re enrolled in the HDHP HSA 2500 (Radiology Partners and ARA teammates) or the SHL Solutions PPO HSA (Desert Radiology teammates) plan, opening a Health Savings Account (HSA) is a smart choice. These plans are specifically designed to be paired with an HSA. Knowing how much to contribute and how to get the most out of it takes some education. Read on to learn more about this type of savings account.
How It Works
Features of Your HSA
- Radiology Partners contributes money to your HSA – up to $750 for individual coverage and $1,500 for family coverage, assuming you’re enrolled in the HDHP as of January 1. These amounts are prorated if you enroll after January 1.
- Radiology Partners’ contribution and any contribution you elect are effective as of the first of the month following the effective date of your enrollment in the HDHP plan.
- It’s triple tax-advantaged: you don’t pay federal taxes on the money you set aside, your balance earns interest tax-free, and you won’t pay taxes on withdrawals (for qualified expenses).
- Your funds never expire and are yours to keep even if you leave the practice.
- You can adjust your payroll contribution at any time during the year.
- You can invest your HSA and earn interest on your balance.
Who Is Eligible?
You’re eligible only if you are:
- Enrolled in the HDHP HSA 2500 plan or SHL solutions PPO HSA.
- Not enrolled in other non-HDHP medical coverage, including Medicare, Medicaid or Tricare.
- Not a tax dependent of someone else.
- Not enrolled in a Health Care Flexible Spending Account (FSA), unless it’s a “limited purpose” FSA for dental and vision expenses.
Using Your HSA
How to Access Your HSA
Once you have signed up for the HDHP HSA 2500 plan or the SHL Solutions PPO HSA, an HSA with VitaFlex will be opened on your behalf. You will receive an email from VitaFlex acknowledging your enrollment. Please follow the directions to access your account online.
The full website allows you to:
- Check current balances
- View statements and tax documents
You can access the VitaFlex Consumer Portal to check your balance or upload claim documentation through the VitaFlex mobile app. You can download the VitaFlex mobile app through the App Store or on Google Play. Once you have downloaded the app to your mobile device, you will need to log in using your VitaFlex username and password.
IRS Rules and Regulations to Know
- You can only spend your funds on eligible medical, dental, and vision expenses. See what qualifies as an eligible expense.
- The maximum allowed contribution to your HSA is $4,150 for single coverage and $8,300 for employee + family coverage (this limit includes Radiology Partners’ contribution). You can contribute an additional $1,000 per year at age 55+.
- At age 65, you can use your HSA for health care expenses tax-free or regular living expenses, subject to regular income tax, but you’ll incur no penalties.
- If you have an HSA, you cannot also have a general-purpose Flexible Spending Account (FSA). However, you can have an HSA and a Limited Purpose FSA covering just vision and dental. You may also use the Limited Purpose FSA for medical and prescription expenses once you have satisfied your annual medical deductible.
Domestic Partners and HSAs
Although domestic partners may be covered on the health plan, they are not treated as spouses for HSA purposes. You cannot reimburse your domestic partner’s expenses as tax-free from your HSA unless that individual qualifies as your tax dependent. The following rules also apply:
- In general, you generally cannot reimburse your domestic partner’s children’s expenses, whether or not they are covered on your health plan.
- If you have family coverage, you can contribute up to the IRS family maximum, even if your domestic partner is not HSA-eligible.
- If your domestic partner is otherwise HSA-eligible, they can open an HSA through their employer to reimburse their own (and dependents’) expenses tax-free.
- If you and your domestic partner are enrolled in family coverage, and you both contribute to HSAs, you can both contribute at the IRS family level.
- The rules for same-sex married couples are the same as for any other married couple.
