Health Savings Account
Administered by HSA Bank
If you are enrolled in the Palmetto Health Savings medical plan, consider participating in a Health Savings Account (HSA).
Federal law requires HSA participants to be enrolled in a high-deductible health plan. If you are enrolled in the Palmetto Health Savings Account medical plan then you are eligible to payroll deduct HSA contributions and receive contributions from Palmetto Health. You’re eligible for Palmetto Health’s HSA contributions even if you elect not to personally contribute funds to your HSA.
If you enroll in the Palmetto Health Savings medical plan and open an HSA with HSA Bank, Palmetto Health will make quarterly contributions to your account (see chart below).
You can contribute to your HSA through pre-tax payroll deductions, and the interest you earn is tax-deferred. Best of all, withdrawals from your HSA are tax-free when used for qualified medical expenses, including your deductibles, coinsurance, copays, and even your medical premiums after you retire. Your end of year HSA balance carries over to the next year. Also, your account is portable; this means it travels with you even if you leave Palmetto Health.
Note: If participating in a Health Savings Account in 2014, neither employee nor employer contributions into a Health Savings Account are permitted if there is a balance of unused funds in a Health Care Flexible Spending Account on January 1, 2014. In this situation, contributions will be allowed on or after April 1, 2014.
Note: In order to receive Palmetto Health’s HSA contributions, you must open an HSA with HSA Bank. If you currently have funds in an HSA with another institution, such as the Palmetto Health Credit Union, for example, then you may use those funds in 2014 or transfer them to HSA Bank. You may only actively contribute to one HSA in 2014. For information about HSAs, go to: www.irs.gov or www.treasury.gov. Click here for the HSA Bank form you’ll need to transfer funds from the Palmetto Health Credit Union to HSA Bank.
Over-the-counter drugs without a prescription are not reimbursable from an HSA, except for insulin.
|Palmetto Health HSA Contributions for Plan Year 2014|
|Medical Plan Coverage Level||Quarterly Contributions|
|Employee + Spouse||$375||$320|
|Employee + Child(ren)||$375||$320|
Note: The 2014 HSA annual contribution limits (employer plus employee) are $3,300 for individuals and $6,550 for employee plus spouse or child(ren) or family.
For a list of Health Savings Account Frequently Asked Questions click here.
Click here for a 10 minute online tutorial about setting up your HSA Bank HSA.
Click here for a list of Palmetto Health specific HSA Bank interest rates and fees. Please note, these fees are specific to Palmetto Health and Palmetto Health pays the Monthly Account Maintenance fee.Back to Top