Health Savings Account (HSA)
If you enroll in the Choice HSA or Kaiser Permanente HMO with HSA plan, you are eligible to open an HSA, administered by Fidelity. An HSA provides a flexible way to manage health care expenses, combining comprehensive coverage with the ability to contribute to an HSA, which can be used to pay for eligible medical costs. Plus, it offers valuable tax benefits!
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You’ll pay lower monthly premiums than with most other plans.
Enjoy triple tax savings on HSA contributions, investment earnings, and withdrawals. 1 Note 1: State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor.
You own the HSA, so your money goes with you if you change jobs or retire.
Unused funds roll over every year; you can spend or save money in the HSA.
After age 65, funds can be used for any purpose, with non-medical withdrawals taxed as income.
Two Plans in One
With the Choice HSA or Kaiser Permanente HMO with HSA plan, your plan has two parts that work together. It’s a smart combo: the Choice HSA or Kaiser Permanente HMO with HSA covers big stuff, and the HSA helps you pay for care before you meet your deductible and save for future expenses.
Choice HSA or Kaiser Permanente HMO with HSA
This is your main health plan. It’s like typical insurance, but with a few key differences:
You pay the full cost for care until you reach your deductible.
Then, you split costs with the plan (coinsurance).
Plan to pay more up front, no fixed copays.
Health Savings Account (HSA)
This account helps you cover those higher early costs, until you hit your deductible (and beyond!):
Save tax-free money 1 Note 1: State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor. for medical expenses, like doctor’s visits and prescriptions.
Your HSA funds help you meet your deductible until plan shares costs.
Unused funds roll over and earn interest.
How Much Can I Contribute?
You can contribute pre-tax dollars 1 Note 1: State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor. from your paycheck up to the annual IRS maximums to pay for eligible health care expenses. When you enroll in an HSA, you will receive a Fidelity debit card.
| Coverage Type | 2027 Maximum Contribution Limit | Age 55+ Catch-up Contribution |
|---|---|---|
| Individual Coverage | $4,500 | Additional $1,000 |
| Family Coverage | $9,000 | Additional $1,000 |
Fidelity Debit Card
When you enroll in an HSA, you will receive a Fidelity debit card.
What About the Fine Print?
HSA Eligibility Requirement
You must be enrolled in a High Deductible Health Plan (HDHP) such as the Personify Choice HSA or Kaiser Permanente HMO HSA.
Exclusions & Disqualifications
You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account as contributions made while ineligible may be subject to IRS penalties and must be corrected.
You cannot be enrolled in Medicare or TRICARE.
You cannot be claimed as a dependent on someone else’s tax return.
Questions? Refer to IRS Publication 969 for HSA rules and IRS Publication 502 for a complete list of eligible expenses and HSA rules.
1 Note 1: State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor. State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor.
Designate and Regularly Update Your Beneficiaries
Designating beneficiaries is essential to ensure your retirement assets pass directly to chosen individuals, bypassing the costly and time-consuming probate process.
Update your beneficiaries for your HSA plan by logging into NetBenefits.
Click on “Profile,” then select “Beneficiaries” to make your choices.
