Health Savings Account

DMBA offers a Health Saving Account (HSA) to eligible employees. HSAs are designed to help employees save for medical costs that accompany HSA-compatible health plans. Both employers and employees can contribute to health saving accounts. Employee contributions can be made tax-free and deducted from your salary.

Employer Contributions

Eligibility

To contribute or receive contributions to an HSA, employees must meet certain IRS eligibility requirements.

• Must be enrolled in one of the two HSA plans (HSA 60 or HSA 80).
• Must not be enrolled in a PPO/non-HSA compatible plan through a spouse’s employment or separate plan.
• Must not be covered by an FSA through a spouse’s employment or separate plan.
• You as the employee cannot be enrolled in government-sponsored health plans (i.e. Medicare, Medicaid, TRICARE).

Guidelines

• All funds in an HSA can roll over from one year to the next and accumulate over time.
• Funds may only be used for expenses associated with anaccount holder's tax dependents.
• Annual contributions are subject to IRS maximums for the year. Both the employer and employee contributions count towards the annual maximum. The IRS annual maximum contribution limits are subject to change from year to year.
• DMBA will allow account balances over $2,000 to be invested for returns.

Using HSA Funds

There are multiple ways to utilize HSA funds to pay for qualified medical expenses. BYU-Idaho encourages employees who participate in HSA-qualified plans and who have HSA accounts to become familiar with the flexibility granted by these accounts. Some advantages include but are not limited to the following:

• Deferred reimbursement (commonly referred to as shoeboxing)
• Funds can be used at a regular tax rate for non-healthcare-related expenses after an account holder turns 65.
• Funds can be used tax free to pay for Medicare premiums.

DMBA will send an HSA debit (DMBA Benefits) card to all qualified participants to use for qualified medical purchases.