Health Savings Accounts

A Health Savings Account (HSA) provides tax-free savings to be used on qualified medical expenses. To be eligible for an HSA, you must meet certain criteria:

Located in historic Chestertown, Maryland, Chesapeake Benefits provides counsel, administrative support, and benefits solutions to employers and employees across the United States. We market quality and affordable group plans to employers, business associations, multi state employers, as well as serving the needs of our local clients.

• Must be covered under a qualified high deductible health plan (HDHP). For 2014, a high deductible health plan is defined as a plan with an annual deductible no less than $1,250 for self-only coverage, and an annual deductible no less than $2,500 for family coverage. HSA eligible high deductible health plans are typically denoted as such in their plan design.
• Do not have any other health coverage, with the exception to dental, vision, disability, and long term care, as well as specified disease insurance, hospital plans, and accident plans.
• Not currently enrolled in Medicare
• Cannot be claimed as a dependent on someone else’s tax return
• Friendly faces with a regional reach

Important to note: Employees who are covered by a HDHP and a health flexible spending account (FSA) or a health reimbursement account (HRA) cannot make contributions to a HSA.

Contributions

Contributions to an individual’s HSA can be made by either the individual, family members or any other individual who wants to make a contribution. If the individual is employed, both the employee and the employer can contribute to the account in the same year.

Contributions for 2014 are $3,300 for an individual with self-only coverage, and $6,550 for an individual with family coverage.

Additional contributions are allowed for eligible individuals 55 or older in the amount of $1,000.

Last Month Rule – If an individual becomes eligible on the first day of the last month of the calendar year, you are considered eligible for the entire year. You must remain eligible for the 12 month period following initial eligibility to avoid penalties on contributions.

Distributions

An individual may use funds accumulated in a Health Savings Account for qualified medical expenses. The funds would be distributed to the account holder tax free to be reimbursed for qualified expenses incurred after the establishment of the account.

Learning Disability

Legal Fees

Lifetime Care—Advance Payments

Lodging

Long-Term Care

Meals

Medical Conferences

Medical Information Plan

Medicines

Nursing Home

Nursing Services

Operations

Optometrist

Organ Donors

Osteopath

Oxygen

Physical Examination

Pregnancy Test Kit

Prosthesis

Psychiatric Care

Psychoanalysis

Psychologist

Special Education

Sterilization

Stop-Smoking Programs

Surgery

Telephone

Television

Therapy

Transplants

Transportation

Trips

Tuition

Vasectomy

Vision Correction Surgery

Weight-Loss Program

Wheelchair

Wig

X-ray

Insurance Premiums

Maternity Clothes

Medical Savings Account (MSA)

Medicines and Drugs From Other Countries

Nonprescription Drugs and Medicines

Nutritional Supplements

Personal Use Items

Swimming Lessons

Teeth Whitening

Veterinary Fees

Weight-Loss Program