Commonly Asked Questions
Please click on any question below to read the answer:
- Who is Health Savings Administrators?
- What options are available for my account?
- What will I receive after my account is opened?
- Can I view my account balance online?
- Will I receive statements on my account?
- Can I use the funds in my HSA for my spouse and/or child?
- What are qualified medical expenses?
- Can I use funds from my HSA for non-qualified medical expenses?
- What is the deadline for submitting claims for reimbursement from my HSA?
- What happens to my HSA when I enroll in Medicare?
- If I am eligible for Medicare but DO NOT enroll in Medicare Part A, B or D, can I still contribute to my HSA?
Health Savings Administrators is the administrator and the first point of contact for your HSA. We are not a bank. HSA Bank serves as our custodian. The role of the custodian is to process all funds in and out of the account, provide tax reporting, and supply and service the debit card/checking account portion of your HSA.
Your Health Savings Account has two components: A mutual fund investment account and/or a debit card/checking account. You can make contributions to either or both components
Vanguard Investment Option: You may choose to invest your HSA money in up to four different Vanguard Funds from the 22 funds offered.
Debit Card Option: You may also invest your HSA money in the debit card/checking account. The account can be used to pay for eligible medical expenses or to reimburse yourself for eligible out-of-pocket medical expenses using the available balance in that account. Please note that you cannot access the Vanguard Mutual funds by using the debit card.
Once your enrollment has been received and your account is set up, Welcome Letters from Health Savings Administrators and HSA Bank will be mailed to your home address. If you elected the debit card option, your debit card will arrive within 7 to 10 business days of opening your account, or by the effective date of your account, whichever is later. Please check your mail carefully as the card will come in a nondescript envelope for your security from Sheboygan, WI.
Additionally, all HSAs are penny funded upon opening. The funding of the account ensures that account holders can reimburse themselves for IRS-qualified expenses incurred from the date the account is opened.
Yes, click on CUSTOMER LOGIN in the top right corner of this website.
All account holders will receive a quarterly statement from HSA Bank either by mail or electronically which reflects the balance in the debit card/checking account, and all activity in your HSA. This statement will not reflect the balance in your Vanguard Funds. If you prefer not to receive the paper statement from HSA Bank, click here to log in to your Internet Banking account, go to Profile, then Statement Preferences and select the preferred method of delivery.
Vanguard Only: If you elected e-mail delivery, a notification will be sent to you when your quarterly statement is available to be viewed online. Otherwise, you will receive your quarterly paper statement at your home address ($10 annual fee applies).
Yes, the funds in your HSA can always be used to pay the eligible medical expenses of the account holder, their spouse, and the accountholder's tax dependents. Insurance coverage for your spouse and tax dependents does not affect the ability to use the funds for their expenses.
To help you determine whether an expense qualifies for tax-free reimbursement under your HSA, Internal Revenue Code Section 213(d) states that eligible expenses must be made for “medical care.” This is defined as amounts paid for the “diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body.” This includes medical, dental and vision. You may also refer to IRS Publications 502 and 969 for extensive lists of eligible expenses. Click here for more information.
Yes, but funds used for non-qualified medical expenses must be reported in your annual income tax filing and are subject to income tax and a 20% penalty. The 20% penalty doesn't apply to distributions made after your death or disability, or after you've reached age 65.
There is no deadline for submitting claims for reimbursement from an HSA. In the event of an IRS audit, you will be required to produce receipts for any medical expenses for the amounts that have been reimbursed from your HSA.
Once you’ve enrolled in Medicare, you are no longer eligible to make contributions to your HSA. You will need to adjust your annual HSA contribution limit (and catch-up amount) based on the number of months you were still eligible to contribute that year. For example: If you enroll in Medicare as of July 1st, your annual contribution limit will be reduced by half, because you were only eligible to make HSA contributions for six months (January 1 - June 30).
After Medicare enrollment, in addition to the normal medical expenses, you can also use your HSA funds to pay for Medicare and IRS approved health insurance premiums. Premiums for Medicare Parts A, B and D, Medicare HMO and any employer-sponsored health insurance are considered eligible medical expenses that can be paid for with your existing HSA funds.
Medicare enrollment is what disqualifies you from being eligible to contribute to your HSA. Eligibility alone doesn’t factor into you being able to contribute to your HSA. *Please note that you cannot opt out of Medicare Part A without opting out of all Social Security benefits.
Review the IRS guidelines about HSA eligibility and Medicare here: http://www.hsaadministrators.info/customer-forms.