Flexible Spending Account (FSA)

An HSA is a personal savings account you can use to pay for qualified out-of-pocket medical expenses with pretax dollars — now or in the future.

How a Health Savings Account (HSA) Works

Your HSA can also be used for your expenses and those of your spouse and dependents, even if they are not covered by the HDHP medical plan. Your HSA works together with your HDHP medical plant to give you greater flexibility and discretion over how your use your health care dollars.


You must be enrolled in the High Deductible Health Plan.

Your Contributions

You contribute on a pretax basis and can change how much you contribute from each paycheck up to the IRS maximum of $3,450 if you enroll only yourself or $6,850 if you enroll in family coverage. You can make an additional catch-up contribution if you are age 55.

Using Your Account

Use the debit card linked to your HSA to cover eligible expenses or pay for expenses out of your own pocket and save your HSA money for future health care expenses.

Remaining Funds

Money left in your HSA at the end of the year will roll over to the next year – you’ll never lose your HSA dollars. If you leave the Company or retire, you can take your HSA with you and continue to pay and save for future eligible health care expenses.

Eligibility to Open an HSA

You are only eligible to open an HSA if you elect the HDHP with HSA medical plan are you are not covered by any other health plan, including Medicare or Tricare.

IRS Rules to Know:


Eligible expenses are tax-free.

You can use your HSA to pay for eligible health care expenses tax-free. When used for things like deductibles, copays, prescriptions, and covered medical, dental, or vision care services, the money is not taxed.

Not compatible with Medicare.

HSAs are not compatible with Medicare. You cannot contribute after you elect Medicare, but any accumulated funds in your account are still available to use.

Non-eligible expenses are penalized.

Using your HSA for non-health care expenses will cost you. You will be taxed, plus there is a 20% penalty if you are under age 65. After age 65, the 20% penalty does not apply, but the expenses are still taxable.

There is a contribution limit.

It is your responsibility to monitor your HSA account balance to ensure you do not exceed the IRS combined maximum for the calendar year. Any excess contributions are subject to standard income tax rates plus 6% excise tax.

Accessing Your Funds

Optum Bank, who UMR uses as their trusted HSA bank partner, will automatically open your HSA for you. Watch your mail after you enroll for a welcome kit with important account information. You can access your HSA, including all balance and transaction activity online.

Changing Your HSA Contribution

You are allowed to change your contribution once per month, with the change becoming effective on the first MIHS pay period following the change request. All requests must be emailed to benefits.mailbox@mihs.org and be received no later than the Monday prior to the pay date.

Your HSA is Always Yours– No Matter What!

One of the best features of an HSA is that any money left in your HSA account at the end of the year rolls over so you can use it next year or sometime in the future. And if you leave the company or retire, your HSA goes with you!