2025 Benefits Open Enrollment: Health Savings Account
On this page:
- About Health Savings Accounts (HSA)
- Eligibility
- How It Works
- Accessing Your HSA Funds
- Contributions to Your HSA
- New Enrollees
About Health Savings Accounts (HSA)
The Health Savings Account (HSA) is a tax-advantaged account that can be used to pay for IRS-qualified health expenses for you, your spouse, and your tax dependents. You can use funds to pay for qualified medical, dental, and vision expenses on a tax-free basis.
The three main tax advantages of an HSA are:
- Contributions are deducted from your pay on a pre-tax basis.
- No taxes are withheld when funds are used for qualified medical, dental, and vision expenses.
- No taxes are withheld on the account interest or investment earnings.
HSAs can also be used as a long-term savings vehicle. Funds in the account roll over annually and accrue interest tax-free. Additionally, funds exceeding $500 in your account can be invested.
Eligibility
Benefit-eligible employees (75% FTE or higher) enrolled in the High Deductible Health Plan (HDHP) who meet all the following requirements are eligible to participate in the HSA program:
- Cannot be covered by another non-high deductible medical plan.
- Cannot be covered by a Healthcare Flexible Spending Account.
- Cannot be enrolled for Medicare benefits.
- Enrollment in any part of Medicare makes you ineligible to make or receive tax-free contributions to an HSA. However, you still have access to your account balance to pay for qualified expenses.
- Cannot be claimed as a dependent on another person's tax return.
- Cannot be enrolled in any other non-qualified medical plan.
- Cannot be covered by TRICARE or be eligible to receive VA medical benefits.
- Cannot be on a J1 Visa.
How It Works
The HSA can be used tax-free for healthcare expenses incurred by you, your spouse, or your IRS-qualified tax dependents, even if they are not covered on your HDHP.
Examples of eligible expenses include:
- medical, dental, and vision deductibles and coinsurance
- prescriptions
- medical equipment and supplies
- acupuncture
- disability aids and hearing aids
- nursing home and home health care
- dental and orthodontia services
- eyeglasses or contacts
- COBRA premiums
- Medicare insurance
- Long-term care insurance
For a more extensive listing of eligible expenses, please visit Qualified Medical Expenses (QME) | HealthEquity.
Accessing Your HSA Funds
Once HSA contributions are made, funds can be accessed in several different ways:
- HSA Card. All HSA participants automatically receive a HealthEquity HSA Card—a debit-type Visa card that allows you to pay for purchases and services from your HSA.
- Online. Log in to your account and select ‘View Claims’ from the ‘Claims & Payments’ tab to pay a healthcare provider online, or click the ‘Reimburse Me' link to reimburse yourself for eligible expenses you pay out-of-pocket.
- Download the HealthEquity app to access your account online.
Contributions to Your HSA
Wright State University Contributions
The university makes an annual contribution to your HSA of $500 or $1,000, depending on your level of coverage.
| Coverage Level | Wright State's Annual Contribution Amount |
|---|---|
| Employee | $500 |
| Employee + Child(ren) | $1,000 |
| Employee + Spouse | $1,000 |
| Employee + Family | $1,000 |
Your Contributions
Although not required, you can make contributions to your HSA up to the IRS limit. Contributions made via payroll deduction are pre-tax, and your annual election is spread evenly over each of your paychecks and can be changed at any time. Remember that the maximum amount you can contribute may be impacted by your spouse's HSA contributions.
IRS Annual Limits
The IRS annual contribution limits for 2025 have increased. The annual contribution amount (both Wright State’s and your contributions) deposited into your account cannot exceed:
- Employee: $4,300
- Employee + Child(ren): $8,550
- Employee + Spouse: $8,550
- Employee + Family: $8,550
- $1,000 additional for HSA ‘catch-up’ contributions (age 55 or older by the end of the 2025 tax year)
Coordinating Your HSA Contributions with Your Spouse
If you and your spouse are each enrolled separately in employee-only HDHP coverage, each of you are subject to the employee-only HSA limit ($4,300 each).
If either you or your spouse has family HDHP coverage (employee with children, spouse, or family coverage), then you will be subject to the family contribution limit ($8,550) as a couple. In other words, if you or your spouse cover family members on your HDHP, your combined HSA contributions cannot exceed $8,550.
Example: Rowdy and his spouse each have family coverage under separate HDHPs. Rowdy is age 58, and his spouse is 53. The couple can split the family contribution limit ($8,550) equally, or they can agree on a different division. If they split it equally, each can contribute one-half of the maximum contribution for family coverage. Rowdy can contribute an additional $1,000 because he is age 55 or over. If both Rowdy and his spouse were 55 or older, each spouse is entitled to increase their contribution limit by $1,000.
New Enrollees
HR will establish your Health Savings Account (HSA) with HealthEquity. Your HealthEquity Welcome Kit, Custodial Agreement, and HealthEquity Visa Health Account Card will be sent to your home mailing address by December 31, 2024.
If you have questions regarding your account at HealthEquity, please call HealthEquity at (866) 346-5800. Their representatives will be available to assist you 24 hours a day, 7 days per week.
