Note: HSA and FSA enrollment from the prior plan year do not carry over; the IRS requires an active re-election each year.

A Health Savings Account (HSA) paired with a qualifying High-Deductible Health Plan (HDHP) helps individuals and families plan, save and pay for health care. Your health and your money are two of your most important assets.

You are eligible to open and fund an HSA if:

• You are covered by an HSA eligible High Deductible Health Plan
• You are not covered by your spouse’s Health Care Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA)
• You cannot be claimed as a dependent on another’s tax return
• You are not enrolled in Medicare

Advantages of participating in a Health Savings Account include:

• You can use HSA money to pay for eligible healthcare expenses now or in the future
• Your HSA account can also be used for your expenses and those of your spouse and children even if they are not covered by the HDHP
• The money in this account (including interest and investment earnings) grows tax-free
• As long as the funds are used to pay for qualified healthcare expenses, they are spent tax-free
• Eligible expenses include deductibles and coinsurance, eyeglasses and contact lenses, prescription drugs and certain services not covered by your health plan.

HSA Funding and Limits

The IRS maximum contributions including employer contributions for these accounts are:

• $4,400 for Individual coverage
• $8,750 for family coverage
• Individuals age 55 or older may make an additional catch-up contribution of up to $1,000
• VyStar contributes up to $600 annually for those enrolled in Single HDHP coverage and up to $1,200 for Family. VyStar contributions are made biweekly.

The CARES Act includes three areas that immediately and retroactively as of January 1, 2020, expand the usage of HSAs and Medical FSAs.

The CARES Act allows over the counter drugs to be offered on a pre-tax basis for employees that have an HSA or Medical FSA. Some examples of allowed OTC items are:

• Cough medicines
• Cold medicines
• Allergy medicines
• Pain relievers, such as acetaminophen

Menstrual products are also now eligible and would include products such as, but not limited to:

• tampons
• pads
• liners
• cups
• sponges