NEW HEALTH PLAN FOR 2020

BCBS PPO HEALTH SAVINGS ACCOUNTS (HSA) PLAN

The new Blue Cross Blue Shield PPO Health Savings Account (HSA) Plan differs from traditional health plans in the following ways:

• An HSA is a savings account used in conjunction with an HSA-compatible health plan that allows you to save money, pretax, to pay for qualified medical expenses
• One of the best benefits of an HSA is that it provides pretax payroll deductions, tax free investment gains and interest earned on your HSA , along with tax-free funds used for qualified medical expenses
• Any money deposited to your HSA remains tax-free as long as it is used for payment of valid medical expenses. Please know that if you use HSA funds for anything other than a valid medical expense, those funds will be subject to penalties and taxation.
• Once your HSA account has attained a total of $2000 in the account can be invested in a variety of funds
• IRS HSA 2020 contribution limits are:
  • $3550 for individual coverage
  • $7100 for family coverage
  • $1000 for catch-up contributions each year you are 55 years or older
• HSA balances roll over from year to year and do not expire
• HSA differs from a FSA (Flexible Spending Account) as any money in your HSA account at the end-of-the-year remains in the account for the next years' medical expenses. FSAs are "use it or lost it" meaning that any unused contributions to a FSA are lost at the end of the calendar year.
• Your actual HSA balance is what is available to pay medical expenses. You will be provided with an HSA debit card for expense payments.