Health Savings Account

The HSA is a special tax-exempt savings account that lets you save money on a pre-tax basis that you can use for eligible health care expenses now and/or in the future. You may contribute to your HSA using pre-tax dollars through payroll deduction. To contribute to a HSA you must be enrolled in the Consumer Driven Health Plan (CDHP). You can use the money in the HSA to pay for all eligible out-of-pocket medical expenses. Your account balance rolls over to the next year.


To contribute to an HSA, you must meet the following criteria:

  • You must be enrolled in a High-Deductible Health Plan as defined by the IRS; the CDHP with an HSA is qualified as a High-Deductible Health Plan.
  • You cannot be covered under any other medical plan.
  • Neither you nor your spouse can have a Health Care Flexible Spending Account (FSA) in 2022 to pay for medical expenses; if you have unused funds from a Health Care Flexible Spending Account from 2021 that you are planning to use for reimbursements by March 31, 2022, you will not be able to contribute to your HSA until April 1, 2022.
  • You may not contribute to the HSA once you attain age 65 if you enroll in Medicare Part A.

Medicare and Health Savings Accounts

  • If you are enrolled in Medicare, you cannot be enrolled in a Health Savings Account, and you can no longer contribute to the HSA. However, you may continue to invest your money and be reimbursed for qualified expenses.
  • If you delay your enrollment in Medicare, you may continue to make contributions to your HSA past the age of 65 as long as you are still covered by a qualified High-Deductible Health Plan with Health Savings Account. In addition, you are eligible to make an additional $1,000 in yearly HSA catch-up contributions.
  • If you enroll in SSI (the income portion of Social Security), this automatically enrolls you in Medicare Part A and you would not be eligible to contribute to your HSA.

NOTE: In Alabama, California and New Jersey, state income taxes may apply to your Health Savings Account (HSA) contributions.  For more information, consult your personal tax advisor.