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Who is eligible to set up an HSA?

To set up an HSA, you must be covered by a qualified high deductible plan, like the Hess Medical Plan. You are not eligible if you have other medical coverage (including a regular (not-limited purpose) Flexible Spending Account), such as through a spouse’s employer, TRICARE or Medicare, that does not qualify as a high deductible plan. You also are not eligible to set up an HSA if you are eligible to be claimed as a dependent on anyone else’s tax return.

Can my spouse contribute to my HSA?

Yes. Your spouse can contribute to your HSA after-tax, since this cannot be done through payroll deductions, and then you can deduct the contribution amount on your tax return. Total HSA contributions to your account cannot exceed the IRS limits.

Does the HSA catch-up contribution apply to my spouse who is age 55 or older, too? Can I contribute an additional $2,000 total for me and my spouse?

No. You can only contribute the additional $1,000 for yourself due to IRS limits.

How much can I contribute to an HSA?

That’s up to you. Hess makes a contribution at the start of each year to your HSA. The amount Hess contributes depends on whether you have individual coverage or coverage that includes dependents. Then, each year, you can contribute up to a maximum total amount set by the IRS. See the Health Savings Account (HSA) section for IRS annual limits.

If you are an active employee, you fund your HSA with before-tax dollars. If you are a retiree, you fund your HSA with your own after-tax dollars and take a tax deduction when you file your federal income tax return.

What expenses can be paid from an HSA?

In general, eligible expenses include medical, prescription drug, dental and vision expenses that you pay out of pocket, such as deductibles, co-insurance and co-pays. Besides those common expenses, eligible expenses also include premiums for certain qualified long-term care insurance or COBRA coverage. You can also use it to pay Medicare premiums or other health insurance (but not premiums for a Medicare supplement policy). A full list of these expenses is described in IRS Publication 502.

How does an HSA work?

You can use money in your HSA to pay for eligible medical, prescription drug, dental and vision expenses that you pay out of pocket, such as deductibles and copays. You can make payments directly to providers using the HSA debit card or the online payment feature, or you can request an HSA checkbook. If you don’t have enough money in your HSA, you can pay expenses with other money, and then reimburse yourself later when you have more money in your HSA. Or, you can leave the money in your HSA and let it grow tax-free.

What is a Health Savings Account (HSA)?

An HSA lets you save money for eligible medical expenses on a before-tax basis. You and Hess can both contribute to an HSA. Your HSA belongs to you. It’s also portable. If you leave Hess, it goes with you. Unlike a Flexible Spending Account, you don’t forfeit unused money at the end of the year. Money in your HSA rolls over year to year. You can learn more about the rules governing HSAs in IRS Publication 969.

When can I change my HSA contributions?

You can change your HSA contributions anytime during the year. To change them online, go to the Hess Benefits Center at Empyrean and:

On the home page, click the Change Your Current Coverage tile.
Select Change in Health Savings Account then Continue.
Follow the instructions to make your contribution change.

You can also call the Hess Benefits Center at Empyrean and ask a benefits representative to make the change for you. They will update it in the system for you while on the phone.

Do I have to do anything to receive the Hess HSA contribution, such as an annual physical?

No. There are no requirements to receive the Hess HSA contribution, except you must be an active employee with an open HSA on the first work day of the year. For new hires, the Hess HSA contribution is prorated based on the calendar quarter of hire and contributed to the new hire’s account during the first two weeks of the calendar quarter following the calendar quarter of hire.

When will I receive the company HSA contribution?

Hess will contribute the full annual amount for employee only coverage and employee + one or employee + family coverage at the beginning of the year. For new hires, these amounts are prorated based on the calendar quarter of hire and contributed to the new hire’s account during the first two weeks of the calendar quarter following the calendar quarter of hire. See the Health Savings Account (HSA) section for details.