Health Savings Account
NEW: Beginning January 1, 2019 - available to those enrolled in PPO 3 HSA medical plan.
Beginning January 1, 2019, Loyola University Chicago is pleased to offer a Health Savings Account, or HSA, to complement the new PPO 3 HSA medical plan option. An HSA is a bank account that allows you to save and pay for your share of everyday qualified health care expenses tax-free. You can pay for qualified expenses for you, your spouse, and any tax dependent (including LDAs) with your HSA–even if they are not covered by your health plan.
Learn more about HSAs at Loyola’s BenefitWallet site. Here you will find articles, videos and several calculators to help you determine how an HSA can help your financial future. You can also access your account through the BenefitWallet member portal.
Loyola will make a contribution into your HSA in January 2019:
- Employee Only: $600*
- Employee + 1 or More: $1,200*
You can contribute up to the following amounts tax free (less Loyola's contribution) in 2019:
$3,500 total = $600 Loyola + up to $2,900 (you)
$7,000 total = $1,200 Loyola + up to $5,800 (you + 1 or more)
If you are 55 or older, you can contribute an additional $1,000 in catch-up contributions, too. Contributions are not subject to federal income tax, Social Security tax or Medicare tax.
- Spend up to 35% less on health care costs with a triple-tax advantage
- Your savings never expire
- You can invest your funds
- You can use funds for health care costs for you or your family
Qualified Health Care Eligible Expenses and Limitations
Many different health care expenses are eligible for reimbursement. They include:
- Deductibles and coinsurance
- Orthodontics or major dental work
- Contacts, eyeglasses, LASIK surgery
- Hearing aids
You may not use your HSA to reimburse yourself for over‐the‐counter (OTC) medications unless you have a prescription from a doctor. Be sure to include the prescription with your receipt when requesting reimbursement.
For a complete listing of eligible expenses, consult IRS Publication 502.
Updated: November 29, 2018
You must be enrolled in an HSA qualified health plan which is the PPO 3 HSA option. If addition, you cannot be covered by another health plan (including Medicare or Tricare) or be claimed as a dependent on another person’s tax return.
You can contribute to your account with payroll deductions, online by making deposits from your checking account, or by mailing a personal check.
Your HSA funds never expire. Any funds you don’t spend roll over year after year and can be saved for retirement. Although there is an annual limit for contributions, there is no limit to the total amount saved in your account.
For 2019, the total annual contribution limit is $3,500 if you cover just yourself, and $7,000 if you have coverage for yourself plus your spouse/LDA and/or your child(ren). These limits include both your contributions and Loyola’s contributions. If you are age 55 or older, you can contribute an additional $1,000 annually as a catch-up contribution.
Funds in your HSA can be used to pay for any out-of-pocket expenses that you owe as part of your health plan – doctor’s visits, prescriptions, lab tests, and hospitalizations. Additionally, dental, vision, acupuncture, and chiropractic expenses can also be paid with your HSA. For a complete list of qualified expenses, visit www.irs.gov/pub/irspdf/p502.pdf.
If you do not enroll in Medicare and remain in an HSA-qualified health plan, you can continue to contribute to your HSA as you did before age 65. If you choose to enroll in Medicare, you are no longer eligible to contribute to your HSA, but you can continue to use it for qualified expenses. Additional expenses qualify at age 65, including certain Medicare premiums. At age 65 you are also no longer subject to the HSA excise tax, allowing you to use your HSA for nonqualified expenses and just pay regular income tax – similar to how you can use funds from the Defined Contribution Retirement Plan (DCRP 403(b) plan) in retirement.
You can contribute to a Dependent Day Care FSA but you cannot contribute to a Health Care FSA. You can enroll in a Limited Flexible Spending Account (LFSA), which can only be used toward eligible dental and vision expenses. The maximum you can contribute in 2019 is $2,700.
You own your HSA. If you change jobs or health plans, you continue to own your account. If you enroll in another HSA-qualified health plan, you can continue to contribute to your HSA. If you choose another type of health plan, you are still eligible to spend the funds in your HSA on qualified medical expenses — for you, your spouse, and your tax dependents.
The monthly maintenance fee is employer paid by Loyola as long as you are enrolled in PPO 3. This fee is $1.90 per employee per month if the monthly average balance is $3,000 or less. No fees apply if the monthly average balance is $3,000 or higher.