What You Need to Know

A Health Savings Account (HSA) is a triple tax-free personal savings account you can use for eligible medical, dental, vision, and prescription drug expenses for yourself and your eligible dependents. You control the money in your HSA, and it’s always yours to keep! You can use the funds for current eligible health care expenses, or you can invest your money to use later, such as during retirement.

Understanding Your HSA

If you enroll in the Anthem BCBS CDHP, you are eligible for a tax-advantaged HSA record kept by Fidelity HSA.

Alliant HSA

The triple tax advantage

  1. You pay no federal taxes or state taxes* on your HSA contributions when they go into your account. This reduces your taxable income and, therefore, reduces the amount of income you are taxed upon.
  2. You pay no taxes* when you use your HSA funds to pay for eligible expenses.
  3. Any interest and investment earnings grow tax-free.*
* Except in California, New Hampshire, New Jersey, or Tennessee, where contributions and/or interest or other earnings earned from a Health Savings Account are considered taxable in the year earned. Please consult your tax professional or state department of revenue for more information.

Growing your account

Your HSA grows through your contributions, investment earnings, and interest.

Your Contributions

If you elect to make contributions to your HSA, your pre-tax contributions are deposited directly into your account each pay period. You can change your contribution amount any time during the year.

Contribution maximums. The IRS limits the amount you can contribute to an HSA pre-tax in 2022 to $3,650 for individual coverage and $7,300 if you are covering one or more dependents. If you’re age 55 or older in 2022, you can make an additional $1,000 pre-tax catch-up contribution.

Investment Earnings and Interest

You can invest your HSA balance in a variety of options, similar to the 401(k) plan. No minimum balance required. However, unlike a 401(k) plan, you must elect your investment options(s); your account will not be invested automatically.

No “use-it-or-lose-it” rules

Unlike a Health Care FSA, your HSA balance carries over from year to year. Plus, you take it with you if you retire or leave the Company.

Eligible expenses

You choose how and when you want to use your HSA funds for eligible health care out-of-pocket expenses. Eligible expenses include your and your dependents’ medical, prescription drug, dental, vision and hearing deductibles, coinsurance, and co-pays.

See IRS Publication 969 for a list of all eligible expenses.

Yours to keep

HSA balances go with you, regardless of whether you stop contributing, retire, or leave your job. The dollars in your account are never taxed if they are withdrawn for qualified health expenses. If funds are withdrawn for other purposes before age 65, they are taxed and an additional 20% penalty will be applied. After age 65, funds can be withdrawn without a penalty, but income tax will be owed if funds are not used for qualified health expenses.

IMPORTANT! The HSA and the Health Care FSA

IRS rules do not allow you to contribute to both an HSA and a Health Care FSA (either your own or through your spouse’s employer if it can pay for eligible medical expense before the CDHP deductible is met). If you enroll in the Anthem BCBS CDHP, you may not be permitted to elect a Health Care FSA.

Understanding the differences

  HSA Health Care FSA
CDHP enrollment required Yes No
“Use-it-or-lose-it” rules apply No Yes
Investment opportunities Yes No
Tax savings when contribution are made Yes Yes
Tax savings on investment and growth Yes No
Take it with you if you leave the Company Yes No


Get HSA information on the go!

With the NetBenefits app, you have easy access to your account information, including your current balance, investments, and a receipt upload tool.

Download the app

Paying for Eligible Expenses

When you enroll in the Anthem BCBS CDHP, Fidelity HSA will send you a debit card to use for eligible expenses. Activation instructions are included with the debit card. You also can use online bill pay or submit a receipt to receive a reimbursement.

IMPORTANT! Keep your receipts

When you use your HSA to pay for an eligible expense—whether you use the debit card, online bill pay, or reimburse yourself—make sure you keep the receipt. You may need to prove that the money was used for an eligible expense.

Learn more about the HSA!

Visit Fidelity HSA's NetBenefits website for HSA-related videos, education materials, calculators, and more.

Visit NetBenefits