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What is a Health Savings Account (HSA) and how do I use it?
A Health Savings Account (HSA) is an account that you can pair with a High Deductible Health Plan (HDHP). You can put pre-tax money into this account to pay for eligible healthcare expenses. Both you and your employer can contribute money to your HSA.
You can only put money into an HSA if:
You’re enrolled in an HDHP.
Your HDHP has a minimum annual deductible of $1500 for yourself or $3000 for your family in 2023.
You’re covered by your HDHP on the first day of the month.
You’re not covered by any other health plans, like Medicare Parts A and B.
You’re not covered by TriCare.
You’re not claimed as a dependent on someone else’s tax return.
You have a valid email address, Social Security Number (SSN), and a primary residence in the US.
Contribution limits
The 2023 contribution limits for an HSA are:
$3850 for yourself
$7750 for yourself and your family
Note: These are the total amounts that you can contribute to your HSA in 2023. They include any contributions both you and your employer make.
You can change your HSA contribution amount at any time! If you have an HSA through your employer, you can fill out a form to change your contribution amount. You can find this form in your League Wallet by selecting your HSA benefit and navigating to “Actions”. Learn more about changing your contribution amount.
Note: Don’t see a link to the form in your Wallet? Our Customer Care team can send you the link. Contact our Customer Care team through Chat or email us at help@league.com.
Eligible expenses
The IRS decides what expenses are eligible under an HSA. Examples of eligible expenses are:
Deductibles
Copays
Glasses
Hospital services and fees
Medical, dental, therapist, vision, and chiropractic appointments
Lasik/Laser eye surgery
Medical equipment and supplies
Examples of ineligible expenses are:
Insurance premiums
Expenses from before you opened your HSA
Cosmetic procedures
Late payment fees
Teeth whitening
How it works
You don’t have access to all the funds at the beginning of the plan year. Your HSA funds accumulate throughout the year as they’re deducted from your paycheck.
Once you open an HSA, you’ll receive a physical card. You can use this card to pay for eligible expenses the same way you’d use a debit or credit card. If you pay for an eligible expense with your own money, you can submit a claim for reimbursement instead.
Can I change my contribution amount at any time?
You can change or stop your contribution amount on a monthly basis. If you submit a change before the 20th of the month, it will come into effect the first pay period of the following month. If you submit a change after the 20th of the month, it won't come into effect until the first pay period two months from when the change was made.
Example One: Imagine you submitted a change to your HSA contribution amount on February 15th. The change comes into effect the first pay period in March.
Example Two: Imagine you submitted a change to your HSA contribution amount on February 25th. The change comes into effect the first pay period in April.
Can I access my HSA funds if I leave my employer?
You’re the owner of your HSA. You’ll still have access to your funds if you change or lose your job.
Can I use my HSA funds after my plan year has ended?
Yes - you’re the owner of your account, and unused funds will carry over every year.