Health Savings Accounts

HSA Overview

HSAs are a tax-preferred bank account that allows you to pay for your deductible and other out-of-pocket expenses. When you enroll in the Anthem PPO with HSA, you may establish your HSA account with the banking institution of your choice. You can make contributions to your account throughout the plan year or in one lump sum payment. During the plan year, you can withdraw money from your HSA to reimburse yourself for your eligible medical expenses. Best of all, you own your account, so you keep it, even if you change health plans or jobs. At the end of the year, the money that remains in your account rolls over to the next plan year. To receive your tax savings for the contributions you made to your HSA, you can claim your HSA contributions on your annual tax return. Please visit the IRS website for more information.

Please note that although your HSA contributions will not be subject to federal income taxes, in a few states you will still be responsible for state income taxes on the money you deposited into your HSA.

Details

You may make contributions to your HSA account up to the IRS annual maximum. The money in your HSA account can be used towards any qualified medical expense. Qualified medical expenses are expenses that generally qualify for the medical, dental, vision, and orthodontia deductions defined by the IRS. Once you satisfy your medical plan deductible, you pay your coinsurance for medical expenses for the rest of the calendar year. You also only pay the prescription copays for the rest of the calendar year.

If I Don't Use It, Will I Lose It?

HSA money is your money, always. The money in your account rolls over from year to year. You won’t lose your unused balance at the end of the year like you would with a FSA. Your savings and earnings are always yours. It’s yours to keep.

Because HSAs are tax-advantaged, the government has established specific rules about participating in and funding an HSA. Our plan guidelines also govern the method and timing of the contributions that you can make to your HSA. A partial listing of some of the important HSA rules are below:

Rule #1

The HSA medical plan has an aggregate family deductible and family out-of-pocket maximum. This means that if you cover your dependents, you must pay the total family deductible before the plan begins to share costs with you. You must also meet the total family out-of-pocket maximum before the plan pays 100% of the usual, customary and reasonable charges for covered services. Funds deferred into the HSA through biweekly payroll deductions can be used for these costs.

Rule #2

There are specific rules about using or opening an HSA if you or your dependents are currently entitled to or enrolled in Medicare. Please visit the IRS website for more information.

Rule #3

You may make pre-tax contributions to your HSA through payroll deductions. However, the maximum amount of your HSA contributions cannot exceed $4,400 for single coverage and $8,750 for family coverage in 2026.

Rule #4

In a California, Alabama and New Jersey, state income taxes will apply to your HSA contributions. Although your own HSA contributions will not be subject to federal income taxes, in these states you will still be responsible for state income taxes on the money deposited into your HSA.

2026 HSA Contribution Limits

You may make contributions to your HSA account up to the IRS annual maximum. For 2026, the maximum amount that you can contribute to your HSA is as follows:

Maximum Contribution - Under age 55

• Single Coverage
  $4,400
• Family Coverage
  $8,750

Maximum Contribution - Over age 55

• Single Coverage
  $5,400
• Family Coverage
  $9,750
• HSA Catch Up
  $1,000