Health Savings Accounts

Log In to Your HSA

A health savings account (HSA) is a tax-favored account used with an HSA-compatible high-deductible health plan, like the University’s Medica HSA plan. You can save pre-tax dollars for medical expenses while also reducing your taxable income. The funds in the account are used to pay for out-of-pocket IRS-qualified medical expenses such as medical, dental, vision, or other qualified expenses.

After you sign up for an HSA, the annual contribution you designate will be divided equally by the number of pay periods left in the year and put into your account each pay period.

People who participate in an HSA receive a debit card to pay for medical expenses with their HSA funds as they are added with each payroll during the calendar year.

Investing Your HSA

Once your HSA balance reaches $1,000, you may choose to invest a portion of your HSA dollars. Investing your HSA dollars could potentially grow your savings. Learn more about HSA investments in this video.

You have the choice between two investment options. You can access self-directed investment options through a Devenir mutual fund account, a Schwab Health Savings brokerage account, or both. Learn how by visiting the HSA Bank investment resource page.

Frequently Asked Questions

If you have additional questions, reach out to either Optum or HSA Bank, depending on which account your question is regarding. Contact information for both vendors are listed on the Benefit Vendor Contacts page.

Additional questions can be found in the HSA Bank Members FAQs.

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Who is eligible to contribute to an HSA?

To contribute to an HSA as a University employee, you must be:

  • Enrolled in the Medica HSA high-deductible health plan;
  • Not covered by other health insurance (except certain types of limited coverage);
  • Not enrolled in Medicare; and
  • Not claimed as a dependent on someone else’s tax return.

What are the contribution limits?

The maximum contribution limit includes both the University’s contribution and any personal contributions you make.*

For 2024, the maximum contribution is $4,150 for employee-only coverage or $8,300 for family coverage. If you meet the qualifications noted below, you are eligible to make an additional catch-up contribution of $1,000 per year:

  • Age 55 or older (regardless of when in the year you turn 55).
  • Not enrolled in Medicare (if you enroll in Medicare mid-year, catch-up contributions will be prorated).

Even if you don’t personally contribute anything to your HSA, the University of Minnesota contributes $750 for employee-only coverage and $1,500 for family coverage to your HSA for the 2024 plan year.

*Note: During enrollment in MyU, you will see instructions stating the maximum amount you can elect per year. A whole dollar maximum isn't listed so that you don't go over the IRS maximum when the system calculates and rounds for 26 pay periods. Enter the maximum listed and the University will contribute the difference to ensure the maximum is reached.

If my spouse and I both have an HSA, can we both contribute the maximums?

While both you and your spouse can have an HSA and make your own contributions, the IRS only allows a single household to contribute up to the family maximum, split between both accounts, regardless of what level of insurance coverage you each have.

For example, if one spouse has individual health plan coverage and the other spouse has family coverage, you’re still held to the IRS family maximum allowable contribution limit.

The total contributions for the year between both accounts can never exceed the family maximum.

Can I have both an HSA and FSA?

You’re not able to have both a health care FSA and an HSA at the same time since they’re both used to pay for the same types of expense—your medical costs.

However, you or your spouse can have a limited-purpose or dependent care FSA and an HSA simultaneously. So, for example, you could use a limited-purpose FSA to pay for just your dental and vision expenses, while using an HSA to cover your other health care costs. Learn more at IRS Pub 969.

Is an HSA right for me?

An HSA is worth considering if you:

  • Want to take advantage of the tax benefits. Contributing to an HSA will reduce your taxable income, and provides another way to save for health care expenses in retirement.
  • Want to take advantage of tax-free withdrawals. Withdrawals from our HSAs are not subject to federal and most state income taxes if you use them for qualified medical expenses.
  • Want the option to keep funds that you’ve saved and didn’t use, and roll them over for your health care each year.
  • Can afford the higher deductible if it’s early in the year and you do not have all of your funds deposited from payroll yet.
  • Want access to the statewide Medica Choice network, or to the United Healthcare Options PPO national network if you are traveling or working outside Minnesota.

It might not be a good fit if you or your family:

  • Aren’t comfortable with the possibility of being faced with a large medical bill up front.
  • Are currently enrolled in any part of Medicare or another non-qualified high deductible medical plan. You can contribute to an HSA account after Medicare enrollment, but contributions will be subject to an excise tax. You can schedule a meeting with a Fidelity financial counselor to discuss whether or not an HSA is a good choice for you.
  • Could be applying for Medicare or Social Security Benefits in the next 6 months. (See note in previous bullet about excise tax.)

If you’re still not sure, you can use HSA Bank’s Health Plan Comparison Calculator to help you determine if an HSA is right for you. Simply enter some basic information about the University health plans you are considering, and HSA Bank will provide you with the cost estimate of each plan.

Can I estimate my costs and savings?

You can use the HSA Savings Calculator. This tool will help you discover how much money you can save with an HSA. Enter some basic information and HSA Bank will provide a guide to measure hypothetical HSA tax savings and growth.

HSA Bank’s Health Plan Comparison Calculator can also help you determine the cost estimate of each University health plan after you enter some basic information about each plan.

Can I make changes to my contribution amount once I'm enrolled?

Yes, changes can be made to your contribution amount at any time throughout the year, even multiple times. Email to start this process.

If you are making a change during the annual open enrollment period, this can be done within your open enrollment benefit event in MyU. This new contribution amount will be reflected in your first paycheck of the following year.

What if I don’t use all of my HSA funds within the year?

Unused HSA funds roll over year to year, so you will not lose any unspent money in your account. There is no "use it or lose it" penalty. Funds that are rolled over continue to grow interest and earnings are tax free. At age 65, you can use your HSA funds for any purpose on a taxable basis. This makes funding your HSA a great way to save for retirement.

You also keep your HSA and any available funds if you leave the University or change your health plan. However, you may not be eligible to make any more contributions unless you are enrolled in a qualified high-deductible health plan.

Do I need to submit receipts for my HSA expenses?

No. You do not need to submit any receipts or file any claims. Just be sure to use the money for IRS-qualified medical expenses and save your receipts for tax purposes. Using HSA Bank’s online expense tracker, you can easily enter medical expense information and securely upload receipts and supporting documentation – all in one place for easy access and tracking.

How do I pay for qualified expenses with my HSA?

To pay for a service or make a purchase, you need to have the available funds in your account. You then have two options for payment:

  • Use Your Health Benefits Debit Card – Use your HSA Bank Health Benefits Debit Card like you would a regular debit card to pay for medical expenses at a point-of-sale, either in-person or on the provider’s website. HSA Bank limits debit card transactions to medical merchants. 
  • Online Transfer – You can pay a provider directly from your HSA on the Member Website or mobile app.

How do I reimburse myself for out-of-pocket medical expenses?

You have multiple options for accessing your funds:

  • HSA Bank Health Benefits Debit Card – You can use your HSA Bank Health Benefits Debit Card at an ATM to reimburse yourself for eligible expenses paid out-of-pocket (a transaction fee may apply). When withdrawing HSA funds from an ATM, be sure to select the "checking" option (not savings) when asked the type of account you are withdrawing from.
  • Online Transfer – On HSA Bank’s Member Website, you can transfer funds from your HSA to an external bank account, such as a personal checking or savings account. There is a daily transfer limit of $2,500 to safeguard against fraudulent activity.

How do I add a beneficiary for my HSA?

If you wish to designate a beneficiary, simply follow these easy steps. In the absence of a beneficiary designation, your beneficiary is your estate.

  1. After logging into your account, click on Profile Summary under the Accounts menu.
  2. Click on Add Beneficiary.
  3. Provide information about your chosen beneficiary, including their Social Security number and birthdate. Upon completion of this form, click Submit.