Overview
- Health savings accounts (HSAs) are a great way to save money and efficiently pay for medical expenses.
- HSAs are tax-advantaged savings accounts that accompany high deductible health plans (HDHPs).
- To be eligible to open and contribute to a Health Savings Account, you must be enrolled in the OHM Advisors Blue Cross Blue Shield of Michigan (BCBSM) High Deductible Health Plan (HDHP) medical option.
- If you choose to enroll in the OHM Advisors BCBSM PPO High Deductible Health Plan (HDHP) option, you will automatically be set up with a Health Equity Health Savings Account (HSA). PLUS – OHM Advisors will help you fund your HSA by contributing an annual total of $750 for a single contract and $1,500 for a two-person or family contract!
Benefits of an HSA
- Triple Tax Savings: Tax-free contributions, tax-free earnings on investments, tax-free withdrawals for qualified health expenses.
- HSA investment options are available.
- No “use it or lose it” policy – the account is owned and managed by you.
Eligibility
- Must be enrolled in the Blue Cross Blue Shield of Michigan (BCBSM) High Deductible Health Plan (HDHP).
- Cannot be covered by other insurance, including a non-High Deductible Health Plan.
- Cannot be enrolled in Medicare.
- Cannot be claimed as a dependent on another individual’s tax return.
- Cannot be enrolled and contributing to a full purpose Healthcare FSA, including a spouse’s full purpose FSA.
Unlike a savings account at your local bank, the amount you can deposit into your Health Savings Account is subject to limits defined by the Internal Revenue Service. You will want to be sure that any contributions made to your HSA (including the contributions made by OHM Advisors) do not exceed the I.R.S limits. For 2024, the limits are:
- $4,150 for single coverage.
- OHM Advisors will contribute: $750
- Maximum employees can contribute: $3,400
- $8,300 for family coverage.
- OHM Advisors will contribute: $1,500
- Maximum employees can contribute: $6,800
- $1,000 catch-up contribution if 55 or older. (Applies to the primary account holder. If the spouse is also 55 or older, the spouse must establish an HSA and make their catch-up contribution of $1,000 to that account.)
Eligible Expenses
- You may use your HSA for qualified health-related expenses as allowed by the IRS, section 213(b).
- A full list of these expenses can be found on the IRS website (irs.gov).
- Unqualified distributions from your HSA are subject to income tax and 20% penalty.
- Important to remember–you cannot expense any claims incurred prior to the opening date of your HSA.
A 20% penalty applies if HSA is not used for qualified expenses (waived at age 65)
Making Deposits and Account Access
- OHM Advisors pre-tax payroll deduction integration is only available with an established Health Equity HSA.
- When you enroll in the OHM Advisors’ BCBSM HDHP, a Health Equity HSA will be set up for you automatically.
- Once enrolled, Health Equity will send you an HSA welcome kit including your debit card.
- OHM Advisors will pay the monthly HSA administrative fee as long as you are enrolled in the OHM Advisors BCBSM HDHP. You will be responsible for the HSA administrative fee if you switch medical plans or drop medical coverage later, or if you terminate employment with OHM Advisors.
- Changes to your deferral election can be made during the year on a monthly basis. Any changes made will be processed the first of the following month.
- To view your balance and claim history, log in to your BCBSM Member Account at www.bcbsm.com.
- You can also log into the member portal at www.healthequity.com, or call Health Equity at 877-284-9840.