My Financial Wellness: Health Savings Account (HSA)

Health Savings Account (HSA)

What is a Health Savings Account (HSA)?

A tax-advantaged savings account using pre-tax money for eligible healthcare expenses.

Requires enrollment in a high deductible health plan such as the Health Savings Plan (HSP) offered to colleagues by CVS Health. HSA dollars can be invested and earnings grow tax-free. Funds never expire — even if you change health plans, employers, or retire.

Main benefits of a Health Savings Account (HSA)

• Helps reduce your taxable income and increase your take home pay

• Keep your funds year after year

• Decide how and when to use the funds

• Maximize your tax savings by contributing money to the account

• Invest for future healthcare expenses

• Eligibility

  Who is eligible?

  Colleagues regularly scheduled to work 30+ hours per week and enrolled in an HSP. And, colleagues can’t:

  • Be enrolled in Medicare (including Part A or Part B);

  • Be covered by another health plan which is not a consumer driven health plan (e.g., a spouse's low-deductible PPO and/or a general-purpose health care FSA);

  • Be claimed on another person's tax return (other than your spouse)

  Note: If you work past age 65, enrollment in Medicare may be retroactive; to learn more, go to medicare.gov. If you may be in this situation, call CVS Health HR Service Center 1-888-694-7287 to understand potential alternatives for your HSA.

• Account details

  Who owns the account?

  Colleague

  Who can contribute to the account?

  CVS Health & Colleague

  Who can the account be used for?

  Self, Spouse and any tax dependent

  Note: Domestic partner expenses cannot be covered by their partner’s HSA. Domestic partners can open their own individual HSA on the PayFlex website. Each partner can contribute to the family limit, if covered by a family plan.

• Contribution details

  What is the annual IRS contribution limit for 2024 plan year?

  $4,150 (Individual)

  $8,300 (Family)

  If age 55 or older, contribute an additional $1,000 pre-tax.

  Note: The annual limit includes all contributions made by you and CVS health.

  How much does CVS Health contribute?

  $500 – Individual

  $1,000 – Family

  Note: The annual contribution amount is based on a 6/1 medical plan effective date and is deposited each pay period in the plan year. If you enroll mid-year, your employer contribution will be prorated.

  When can I adjust my contribution?

  Any time

  Can I carryover the account balance?

  Yes - Even if you change health plans, employers, or retire.

• Spending details

  Do the funds expire?

  Never

  When can I start using my funds?

  Your pro-rated payroll contributions are available to spend when they are deposited into your account.

  Note: All funds are used for eligible expenses incurred once your HSA is open and available in your account.

  What expenses are eligible?

  Eligible medical, prescription, dental, vision and over-the-counter expenses.

  View the full list of eligible expenses on inspirafinancial.com

  Do I receive a debit card?

  Yes

  How do I access the funds?

  Use the Inspira Financial debit card at the time of service or;

  • use online bill pay to pay your providers directly or;

  • reimburse yourself for out-of-pocket expenses through the Inspira Financial mobile app or website via check, or ACH transfer funds directly to your bank account.

• Tax details

  Do I need to submit documentation for an expense to PayFlex?

  No - Documentation is not required.

  Note: It’s still important to save your documentation as the IRS may request documentation to verify funds were used for an eligible item.

  Are the distributions tax-free?

  Yes – as long as, they are used for eligible expenses.

  Are the earnings tax- free?

  Yes

• Savings and investments

  Does the account provide long-term savings?

  Yes

  Can I invest the funds in the account?

  Yes

  If I leave the company, can I take my account with me?

  Yes

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