Health Saving Account (HSA) FAQs

An HSA is a tax-free savings account that can be used to pay for insurance deductibles and qualified out-of-pocket medical expenses. HSA’s work with low-premium/high deductible insurance plans to cover major medical expenses.

You must be enrolled in any qualified high-deductible health plan. At WSU, these plans are the Consumer Directed Health Plans (CDHPs).

When you change your medical plan to one of the three CDHPs offered through the PEBB within your first 31 days of hire, if you have a special open enrollment, or during the annual open enrollment in November (effective the following January 1), you will automatically be enrolled in an HSA.

A list of qualified medical expenses can be found on the HealthEquity website, the IRS website, and the HSA Guidebook. Your HSA can be used for eye glasses/contacts and dental expenses.  However, these expenses may not apply to your deductible.  Check with your insurance plan for more information. Your HSA can only be used for cosmetic surgery if it is prescribed by a physician as being medically necessary.

Yes. View the HSA Guidebook on the HealthEquity website for more information.

The maximum contribution limits are set by the IRS and may change year over year. Those over age 55 can contribute an additional $1,000 annually on top of the posted limits. WSU will contribute $700.08 to an HSA for an individual, or $1400.04 for families annually. The WSU contribution counts towards the maximum contribution level.

Yes. You can view your account information and balances, claim transactions, pay providers, request reimbursements, and manage your personal information through the HealthEquity Member Portal.

Contributions can be made through pre-tax payroll deduction, using the Change HSA at Any Time change benefits event in Workday. Contact HealthEquity to determine if there are other ways you are able to make contributions.

You can make payments online through the HealthEquity Member Portal. You will also be issued a debit card and/or checkbook.

Yes. The money in your HSA is yours to use whenever you need it for qualified medical expenses.

Yes. It will be tax-free also. For questions regarding how interest is administered, visit the HealthEquity website. To determine if other investment options may be available to you, contact Health Equity.

Yes, you can typically invest in pre-selected mutual funds after you reach a $2,000 balance in your account. Check your plan details or contact HealthEquity for more information.

You will have to pay income taxes on the withdrawal plus a 20% penalty. Contact HealthEquity or a qualified tax advisor for more information.

Yes, you can use your HSA to pay for qualified medical expenses of any family member who qualifies as a dependent on your tax return. However, those expenses will not be applied toward your deductible. A possible exception would be if your child(ren) is also covered under an FSA. Consult with your FSA administrator and HealthEquity to address this scenario.

Contact Medicare for information as to whether this is possible, and if so, what the process and/or implications of dis-enrolling from Medicare would be.

Visit the following links to see differences between an HSA and an FSA: FSA-HSA Comparison Chart.

If you are currently enrolled in an FSA and are switching to a CDHP/HSA for the following year, you must use all your FSA funds by December 31st. You will not have the normal grace period to use your current year FSA funds.

You will still be able to use the money from the HSA, and the accrued funds will be available for use for your lifetime. If you are married, and you pre-decease your spouse, your HSA account may continue to be used by your spouse for the remainder of their life. Contact HealthEquity for additional information on this.

However, if you are on Medicare or work for a new employer that doesn’t have a qualified HDHP, you will not be able to continue making contributions to your HSA. If you retire and are covered by a qualified HDHP, and are not on Medicare, you may continue to make contributions.

You can call HealthEquity Member Services at 866.346.5800, or visit the HealthEquity website.

Visit the following websites for additional plan-specific CDHP/HSA information:

• HealthEquity
• Kaiser Permanente CDHP
• Uniform Medical Plan Options Comparison
• Uniform Medical Plan HSA Basics