Jump to Content

Healthy Blue HSASM

A winning combination for you and your employees

Healthy Blue HSA is a "win-win-win" type of plan. It is an employee-owned, portable health care savings account combined with a PPO plan that provides triple tax savings. Contributions are 100-percent deductible, withdrawals are tax-free and interest earnings are tax-free. In addition, there are many other features.


IRS publication 502 specifies qualified health care expenditures.


Why are HSAs gaining in popularity?

Employees are empowered to make contribution and purchasing decisions, and the HSA is portable from job to job. (The employee must maintain a high-deductible health plan to continue contributions, but existing funds remain in the account for use.)


Employers like HSAs because they see cost savings through lower premiums and tax advantages. In addition, contributions are exempt from payroll taxes. Employers offering consumer-directed health plans can save as much as $1,500 per employee every year compared to employers who offer regular HMO or PPO plans.


How does Healthy Blue HSA work?

The HSA is combined with our Flexible BlueSM PPO and administered through our FDIC-insured banking partner. For more information on Flexible Blue, please click here.


Eligibility

The following conditions apply for employee HSA eligibility. Employees cannot be:


  • Covered by other health insurance
  • Enrolled in Medicare or Medicaid
  • Claimed as a dependent on someone else's tax return (or be a child)
  • Have any other claims-funding source prior to meeting the PPO deductible

How Healthy Blue HSA works with preventive care

Preventive care services may be covered on a first-dollar basis, are paid immediately — subject to fixed dollar copays — and are not subject to the deductible. (For other qualified expenses, see IRS publication 502.) Qualified preventive care services include:


  • Health maintenance exams
  • Child and adult immunizations
  • Tobacco cessation programs
  • Weight-loss programs
  • Screening services
  • Prescription drugs taken to prevent the onset of a condition for people who have developed risk factors (e.g., cholesterol-lowering drugs)

What is a catch-up contribution?

For employees 55 and older, an additional $1,000 per year (2009 and later) may be contributed in addition to the maximum yearly contribution. These contributions must end when the individual enrolls in Medicare.


For a husband and wife, each spouse must have a separate HSA if both want to make catch-up contributions.