Setting up a Health Savings Account (HSA)
Here are easy steps an employee would follow to set up a health savings account (HSA) to work with the BlueEdge HSA health plan.
Step 1: Ensure you are eligible for an HSA.
In order to participate in an HSA, the employee must:
- Be covered by BlueEdge or another qualified High-Deductible Health Plan (HDHP).
- Not be covered under another health insurance plan. (Individuals with limited benefit policies, including dental, vision and worker's compensation, may still be eligible for an HSA.)
- Not be enrolled in Medicare.
- Not be claimed as a dependent on another person's tax return.
- Not have funds in a Flexible Spending Account (FSA) at the end of the plan year; or if funds are in an FSA at the end of the plan year, the individual can make a one-time transfer of the entire FSA funds to the HSA during the FSA grace period.
Step 2: Become a BlueEdge HSA member.
An employee has chosen the BlueEdge HSA health plan. As a BlueEdge member, it's time to choose an HSA administrator/bank and open a health savings account.
Step 3: Open a health savings account once the BlueEdge HSA plan is activated.
- To build savings for health-related expenses, members will need to pair their BlueEdge health plan with an HSA. Members may choose any HSA financial administrator or set up a health savings account directly with a bank. There are national and local HSA administrators/banks that offer HSAs. To set up an HSA, we recommend members work with their broker or check with their own bank.
- Other resources members can check for more information about HSAs and the institutions that offer them:
- Members should fund the HSA as soon as possible to maximize tax advantages for the year.
Step 4: Members pay for the qualified medical expenses out of the HSA.
- Most HSA providers will provide a checkbook and/or debit card so the members can pay claims directly out of the HSA. These are convenient ways to pay for prescription or over-the-counter drugs. For doctor or hospital visits, the employee should consider asking to be billed later in case adjustments are made.
- While members are not required to open an HSA to be used with their health plan, most members agree that they get the most out of their plan by taking advantage of the tax benefits, control, and flexibility of an HSA.
Learn More About BlueEdge HSA