Health savings accounts (HSAs)For small businesses
Health savings accounts (HSAs) are employee-owned personal savings accounts, which can be funded by an employer, an employee, or both. They can only be offered in conjunction with a federally qualified high-deductible health plan (QHDHP).
Employees contribute to HSAs through 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
With an HSA, the employee owns the account — so if he or she changes jobs, the account goes with that employee. Employees can invest a portion of their HSA funds which can help them to work toward their long-term savings goals.2
The BlueSaver℠ HSA Solution
The BlueSaver HSA Solution is fully integrated with our medical products and services, delivering a seamless experience for your employees. With claim and payment integration, managing the account through ibx.com or the IBX mobile app is simple and efficient — empowering members to take full advantage of their HSA benefits and become more informed health care consumers.
WealthCare Saver (WCS) investment solution
Subscribers enrolled in an Independence Blue Cross (IBX) QHDHP with an HSA cash balance greater than $500 may take advantage of the WCS investment solution, allowing them to build wealth and save for retirement by investing funds, just like a 401(k). Unlike a 401(k), they never pay taxes on earnings or withdrawals for qualified medical expenses.1 HSA contributions offer greater tax savings than 401(k) contributions and offer the potential to save at a faster rate.
With this modern investment solution, account holders enjoy:
- Easy access to manage both the HSA cash account and investments from the same portal, ibx.com or the IBX mobile app
- Three investment models to choose from: Managed, Self-directed, or Brokerage
- Real-time account opening and trading
- Fractional trading of desired exchange-traded funds (ETFs) and stocks
High-yield interest options available to account holders with HSAs
Members enrolled in a QHDHP with an HSA can choose between two interest options for their cash deposits: traditional or high-yield.3
- Traditional. Account holders earn standard interest rates on their cash balance. Cash deposits are FDIC-insured up to $250,000 and receive a lower interest rate.
- High-yield. 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.
Learn more
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.
Contact us
For more information about the BlueSaver HSA Solution, contact your IBX account executive, independent broker, or consultant, or call 215-241-2263.
Independence Blue Cross does not provide legal or tax advice. Consult your legal and/or tax advisor for rules regarding the tax advantages of spending accounts.
1 Tax savings are at the federal level. State tax laws vary.
2 An optional investment account may be opened once the HSA balance reaches $500; additional fees apply. The balance in the HSA Investment Account is subject to investment risks, including fluctuations in value and the possible loss of the principal amount invested. Investing through the WealthCare Saver investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement(s).
3 This choice only impacts the HSA cash balance and does NOT impact the investment account — if the account holder has opted to open one.