Health Savings Account (HSA) Frequently Asked Questions
Q. What is an HSA?
A. The HSA (health savings account) is a tax-preferred way to help pay for current or future out-of-pocket health care expenses. Any money remaining at the end of the plan year can be rolled over into the next year and is the property of the member. An HSA can be established through a custodian or trustee. HSA contributions can be made by: an individual (when purchasing his or her own health plan), an employer, an employee or both the employer and employee. Family members also may make contributions to an HSA on behalf of another family member as long as that other family member is an eligible individual.
Q. What does “crossover” mean?
A. Crossover is the convenient electronic feature of HSA that connects a member's providers, the member's health plan and the HSA. If a member has crossover, claims are submitted electronically from the health plan to the health savings account, which means less paperwork for the member. Members also have the option of having reimbursements sent to them as a check or deposited directly into their checking or savings account, without completing any paperwork.
Q. What is “rollover”?
A. Rollover means that a member can carry over all or part of HSA funds to the next year if a balance remains at the end of the current plan year. The next year’s amount would then be added to the rolled-over amount, giving the member more account money to help pay your deductible that year. Check plan materials to see if rollover is available.
Q. Who can own an HSA?
A. Any "eligible individual" can establish an HSA. BCBSKS will enroll an individual in a qualifying high-deductible health plan (HDHP) based on the individual's representations of eligibility. An "eligible individual" means, with respect to any month, any individual who:
- Is covered under a qualifying high-deductible health plan on the first day of any month.
- Is also not covered under another health plan that is not an HDHP (with certain exceptions for plans providing certain limited types of coverage).
- Is not entitled to benefits under Medicare (generally has not yet reached age 65).
- May not be claimed as a dependent on another person's tax return.
It is the individual's responsibility to advise BCBSKS immediately should he or she become ineligible for an HSA or enrolls in another HSA.