Cost Savings
- To determine how much cost savings the HSA may provide you and/or your family, you will need to consider several items.
- Your Total Contributions (Remember: Contributions as well as accrued interest to the HSA are tax free.)
- Your Total Estimated Expenses (Remember: Distributions on qualified medical expenses from the HSA are tax free.)
- The Premium Difference Between Your HSA Plan and Other Plan Options (Remember: Monthly premiums for the HDHP insurance are typically lower than those of a Traditional PPO.)
Your Estimated HSA Cost Savings Example
| Traditional PPO + FSA | HDHP + HSA | |
|---|---|---|
| Gross Annual Pay | $60,000 | $60,000 |
| Maximum Annual Health Care FSA Contribution | $3,050 | $7,750 |
| Estimated Annual Family Premium | -$13,000 | -$11,000 |
| Adjusted Gross Pay | $43,950 | $41,250 |
| Estimated Tax Rate (15%) | $6,622.50 | $6,255 |
| Estimated Annual Expenses | $3,050 | $3,050 |
| Remaining FSA vs. HSA Balance | + $0 | $4,450 |
| Remaining Take Home Pay with FSA vs. HSA | $34,677.50 | $37,045 |
YOUR TAKE HOME PAY COULD BE $2,367.50 MORE WITH THE HSA
All figures in this table are estimates and based on an annual salary and maximum contribution limits to the benefit account. Your salary, tax rate, health care expenses, and tax savings may be different.
Who Is Eligible?
In order to be eligible to enroll and contribute to a Health Savings Account (HSA), you must first ensure you meet the necessary requirements. If your answers to the below questions match ours then you are likely eligible to open and contribute to an HSA.
| Question | Answer |
|---|---|
| Are you currently enrolled or covered by a HSA-qualified high deductible health plan? | YES |
| Is the annual deductible for your health insurance plan higher than $1,350 for individual coverage or higher than $2,700 for family coverage? | YES |
| Is the annual maximum out-of-pocket for your health insurance plan less than $6,750 for individual coverage or less than $13,500 for family coverage? | YES |
| Are you covered by any other health plan (such as a spouse or parent) that is not considered a HDHP? | NO |
| Are you currently enrolled in Medicare (Part A or Part B) | NO |
| Are you currently enrolled in either a Health Care Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) that reimburses you for medical expenses in addition to dental and vision expenses? | NO |
Contribution Limits
| Self-Only Coverage | 2023 | 2024 | 2025 |
|---|---|---|---|
| Maximum Annual HSA Contribution | $3,850 | $4,150 | $4,300 |
| HSA Catch-up Contribution (Age 55 or Over) | $1,000 | $1,000 | $1,000 |
| Minimum Annual Deductible for HDHP | $1,500 | $1,600 | $1,650 |
| Maximum Out-of-Pocket Limit for HDHP | $7,500 | $8,050 | $8,300 |
| Family Coverage | 2023 | 2024 | 2025 |
| Maximum Annual HSA Contribution | $7,750 | $8,300 | $8,550 |
| HSA Catch-up Contribution | $1,000 | $1,000 | $1,000 |
| Minimum Annual Deductible for HDHP | $3,000 | $3,200 | $3,300 |
| Maximum Annual Out-of-Pocket Limit for HDHP | $15,000 | $16,100 | $16,600 |