Health Savings Accounts (HSA)

What is an HSA?

The Union Bank Health Savings Account (HSA) is a tax-favored
consumer savings account for individuals and families covered by
high deductible health insurance plans.  Tax-free withdrawals may
be taken from your Union Bank HSA to pay for qualified medical,
dental or vision care expenses.  Contributions may be made on a
pre-tax basis.  Withdrawals can be used to pay for qualified
medical expenses.  This Special Account works with your health 
insurance policy.

Who is eligible for an HSA?

  • May not be enrolled in Medicare
  • May not be eligible to be claimed as a dependent on
    another person's tax return
  • Be covered under a high-deductible health plan (HDHP)
    on the first day of the month
  • May not be covered under another health plan that is
    not an HDHP

An HDHP is a plan with at least a $1,200 deductible for individual
coverage and at least $2,400 for family coverage annually.*

How does this plan work?

Take the premiums you currently spend on a traditional or
group plan and split that into two sections.  One part will
pay the premium for the lower cost, high-deductible health
insurance plan and the other part is deposited into your Union
Bank Health Savings Account.

 

How can I access my HSA?

Checks and a debit card will be provided to each individual
account holder.  Account holders may use the checks/debit
cards for expenses as they choose.

What if I have large medical bills?

Under a high deductible health plan, the consumer is often
responsible for all medical expenses until the deductible is
met.  Your funds in the HSA account may be used to pay the
amounts that are due.  Many, but not all, health insurance
plans pay all medical expenses once the deductible is met.
In other cases, the plan moves into co-insurance, such as the
plan paying 80% and the consumer paying 20%, until the out-
of-pocket maximum has been reached.

HSA provides triple tax savings:

  • Tax deductions when you contribute to your account
  • Tax-free earnings through investment
  • Tax-free withdrawals for qualified medical accounts
  • Consult your tax advisor

 

*High deductible health plans are plans with a minimum annual
deductible of at least $1,250 for an individual ($2,500 for families)
and a maximum out of pocket expense of $6,350 ($12,700 for families).
Figures based on 2014 HSA's

 

To open up a personal HSA account, stop by or call your local Union Bank office for assistance. If you're interested in offering HSA accounts to your employees contact our Private Banking / Treasury Management Department by calling your local Union Bank office or call toll-free 800-837-8111.