What is a health savings account?

A Health Savings Account (HSA) is a pre-taxed savings account that is created for people who get their insurance coverage through high deductible health plan (HDHPs). Regular contributions to the account are made by the employee or employer and can be used to pay for qualified medical expenses that are not covered by the HDHPs.

If you enroll in one of the High Deductible Health Plans (HDHPs), you may qualify for a Health Savings Account (HSA). This is a savings account that you own to help pay for qualified healthcare expenses not paid by any other health plan.

The eligibility requirements to open and contribute to a Health Savings Account (HSA) are mandated by the Internal Revenue Service (IRS), not by your employer. Individuals who enroll in an HSA but are later determined to be ineligible for that account, are subject to financial penalties from the IRS. It is an individual’s responsibility to ensure that they meet the eligibility requirements to open an HSA account and to have contributions made to that HSA account, as outlined below:

• Need to know your account balance?
• Need to order a new card?
• Need to change your name or address?

To be eligible to open an HSA you must be covered by an HSA-qualified health plan (a HDHP) and must not be covered by other health insurance that is not an HSA-qualified plan. (certain types of insurance are not considered “health insurance” and will not jeopardize an individual’s eligibility for an HSA, including automobile, dental, vision, disability, and long-term care insurance).

By law, you are NOT ELIGIBLE for HSA contributions if you:

• are enrolled in Medicare, such as Medicare Part A, B, C or D,

• are covered by another health care plan that is not an HDHP,

• can be claimed as a dependent on someone else’s tax return,

• are enrolled in a general Health Care Flexible Spending Account (or covered by a spouse’s FSA),

• are covered by a non-HDHP such as TRICARE and TRICARE For Life.

To qualify for the District’s monetary contributions to an HSA you must be enrolled in a Mesa Public Schools HDHP. The plan administrator does not provide tax advice and no inference may be made that the information contained here constitutes tax advice. The tax information contained in this document is for general guidance only and is subject to change due to changes in IRS rules and regulations. You should consult a qualified tax advisor with regard to any questions you may have about the tax effects of an HSA on your individual circumstances.

What is a Flexible Spending Account (FSA)?                                                                                                                                                                                      A FSA is a spending account provided by your employer that can be used to pay for different types of eligible medical, dental and vision expenses.  These accounts are solely funded by the employee on a pre-taxed basis.

A Flexible Spending Account [FSA] allows you to use pre-tax dollars to pay for qualified healthcare or dependent day care expenses.  There are 3 types of FSA accounts available:   

IRS Tax Limits 2022

• General Purpose Healthcare FSA - HCFSA (For individuals not enrolled in a HDHP health plan)                                                              Used to pay eligible medical, dental and vision expenses IRS Annual Maximum amount: $2,850.00.     
• Limited Purpose Healthcare FSA - Ltd-HCFSA (For individuals enrolled in a HDHP health plan)                                                              Used to pay eligible dental and vision expenses ONLY.  IRS Annual Maximum amount: $2,850.00
• Dependent Care FSA - DCFSA                                                                                                                                                                              Used to reimburse eligible day care, child care and elder care expenses.  IRS Annual Maximum amount: $5,000.00.                              

IMPORTANT NOTE: Any unused amounts credited to your account as of the end of the coverage year will be forfeited.

***For continued participation in the Flexible Spending Account annual enrollment is required, during the open enrollment period***