Health savings accounts (HSAs)
HSAs offer your employees a tax-advantaged way to save and pay for qualified out-of-pocket health care expenses. To enroll in an HSA, the employee must be covered by a qualified high-deductible health plan (QHDHP). HSAs can be funded by an employer, an employee, or both.
Employees contribute to HSAs through pre-tax payroll deduction, check, or online transfer. Contributions are tax-deductible, and distributions are tax-free when used to pay for qualified medical expenses. Interest and earnings are also tax-free.1
Employers may make pre-tax contributions to their employee’s HSAs. These contributions are not subject to withholding from wages for income tax or subject to FICA, FUTA, or the Railroad Retirement Act.
The HSA is employee-owned — so if he or she changes jobs, the account goes with that employee. In addition to using the HSA to pay for out-of-pocket healthcare costs this year, employees may also open an investment account with a portion of their funds allowing the HSA to become an
investment vehicle to help cover health care costs in their retirement years.2
The BlueSaver® HSA Solution
Our BlueSaver HSA Solution is closely integrated with our medical products and services to ensure a seamless experience for your employees — to help them take full advantage of their health plan benefits.
The BlueSaver HSA Solution offers employees all the advantages of an HSA, along with claim and payment integration to make account management easy. This integration creates a one-of-a-kind experience for our members, while also assisting them in becoming more informed health care consumers.
Reduce prescription costs with the BlueSaver HSA Solution pharmacy benefit
With the BlueSaver HSA Solution, customers can add a benefit that helps them save money and makes it easier for members with chronic conditions to afford preventive medications.
When a member with an HSA-qualified HDHP fills a prescription for any of the eligible preventive medications, the deductible is waived. The member simply pays the plan’s copay or coinsurance. View the complete HSA HDHP Drug List.
Refer to IRS Publication 969 for more information about HSAs. Refer to IRS Publication 502: Medical and Dental Expenses for a complete list of qualified expenses.
HSA investment solution
Members who are enrolled in an Independence HDHP with an HSA now have a new option to
invest their HSA funds. The WealthCare Saver investment experience allows members to
personalize their investment journey based on their unique needs and investment
experience level. Best of all, the new solution is fully integrated, allowing
account holders to manage all aspects of their HSA through ibx.com or the IBX
High-yield interest option available to account holders with HSAs
Members enrolled in an IBX QHDHP with an HSA can choose between two interest options for their cash deposits: traditional or high-yield.3
- Traditional option. Cash deposits are insured by the FDIC for up to $250k and receive a lower interest rate.
- High-yield interest option. Account holders earn a higher interest rate on their cash balance. The high-yield cash account funds are not FDIC-insured and are held in a deposit account backed by Pacific Life, a highly rated California insurance company.
For more information about the BlueSaver HSA Solution, contact your Independence account executive, broker, or consultant — or call 215-241-2263.