The HSA lets you control how you save, invest, and use your healthcare dollars.
Because you fund the HSA with pre-tax money, you're using tax-free funds for healthcare expenses you'd normally pay for out-of-pocket. Your HSA contributions don't count toward your taxable income for federal taxes. They're not taxable in most states, as well.
The money always belongs to you, even if you leave the company. Plus, unused funds carry over from year to year so you never have to worry about losing your money. With Humana's HSA, your account can grow tax-free in an interest-bearing savings account. Depending on the type of HSA you have, you may be able to invest HSA funds in a money market account and wide variety of mutual funds, as well. Of course, your funds are always available if you need them for qualified healthcare expenses.You can use HSA funds for IRS-approved items. Examples include:
For a sample list of IRS-approved expenses, sign in to MyHumana and click the "Spending Accounts" link under the "Claims & Spending" section. You can also refer to IRS Publication 969 and Publication 502. Keep in mind the IRS may allow or disallow any expense because of circumstances involved.
You can spend only the money that's actually in your HSA. If your healthcare expense is more than your HSA balance, you need to pay the remaining cost another way, such as cash or personal check. You can request reimbursement after you have accumulated more money.
Every time you use your HSA, save your receipt in case the IRS asks you to prove that your claim was for a qualified expense. If you use HSA funds for a nonqualified expense, you'll pay tax and penalty on the ineligible amount.
As of January 1, 2011, OTC medications such as pain relievers, cough syrup, and allergy medicines require a written provider's directive to be eligible for reimbursement from a Flexible Spending Account or Personal Care Account. The HumanaAccess Card may not be able to be used to purchase OTC medications.
Lucy enrolls in a High Deductible Health Plan. Her plan is effective January 1, 2010, and has the following features:
Lucy's healthcare costs are higher than usual because she breaks her leg. Her expenses for the year total $2,715:
How Lucy uses her HSA for healthcare costs
Summary – When the accident happened, Lucy used the HSA dollars deposited so far to cover her deductible. She wrote a check for the rest and then got reimbursed from her HSA when more money went into the account. After Lucy used the HSA to meet her $1,500 deductible, her health plan helped her pay the remaining $1,215. The plan paid 80% coinsurance, and Lucy paid the other 20% out of pocket. Because she used all the money in her HSA, Lucy has a zero balance at the end of the year.
Year 2Lucy's healthcare costs aren't as high as last year. She has an illness that requires two doctor's office visits and two prescriptions. Her expenses for the year total $435:
Summary – Because her healthcare expenses were only $435, Lucy didn't use all of her HSA funds. She also didn't have to use any of her take-home pay to cover out-of-pocket costs. At the end of the year, she has $1,065 left. She can use the money tax-free for eligible healthcare expenses in the future and even invest it tax-free. She can also use these funds to reimburse herself $243 for the amount paid in year 1.
Summary – Because the family's healthcare expenses were only $775, Doug didn't use all of his HSA. He spent his employer's $500 contribution, plus $225 of the money he put in tax-free. At the end of the year, he's spent none of his take-home pay on out-of-pocket costs, and he still has $1,725 left to use for future healthcare expenses.Year 2 This year, John is injured — leading to X-rays, a three-day hospital stay, knee surgery, and two prescription drugs. On top of that, both Tina and Julie get sick and have to go to the doctor. The family's expenses for the year total $7,710:
Summary – Doug used the $2,500 in his HSA to meet the plan's deductible, leaving $1,725 in his account. After meeting the deductible, the family's health benefits paid 80% of the remaining healthcare costs. Doug paid the other 20% with his HSA. He didn't have to use any of his take-home pay to cover out-of-pocket costs, and he still has $683 left to use for future healthcare expenses.
Here are some Humana tools that may be useful to members who have a Health Savings Account.
View a sample list of allowable and disallowable expenses according to the Internal Revenue Service.
(99 KB) Download PDF
You can estimate how much to contribute using our spending account planner:
With MyHumana Mobile, you can check your HSA balance on your mobile device. Use your existing MyHumana sign-in information to access this and more at m.humana.com .
* This webpage is not a complete disclosure of plan qualifications and limitations. Before applying for coverage, please refer to the Regulatory Pre-enrollment Disclosure Guide for a description of plan provisions which may exclude, limit, reduce, modify or terminate your coverage.
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