BCBSAZ Offers You a Choice
BCBSAZ is contracted with Blue Healthcare BankSM and HSABankTM.
You may open a health savings account with Blue Healthcare Bank, HSABank or choose
another bank that offers health savings accounts (HSAs).
When you set up your HSA, the financial institution administering the account will
provide you with a checkbook and/or debit card to use when paying for services and
items with funds from your account. You do not need to contact BCBSAZ or the HSA
administrator before making withdrawals from your HSA. Please consult with your
tax or legal advisor to discuss the details regarding HSAs and whether an HSA is the right choice for you.
A Few HSA Basics
A health savings account (HSA) is a tax-exempt trust or custodial account to be
used for paying qualified medical expenses. To open an HSA*, you must enroll in
a qualified high-deductible health plan, such as BluePreferred Saver or BlueClassic
Saver.
For eligible individuals, HSAs may provide tax advantages,
and there are no "use-it-or-lose-it" restrictions. Generally, an "eligible individual"
is any individual who is covered under a qualified high-deductible health plan,
is not entitled to benefits under Medicare and is not claimed as a dependent on
another person's tax return. Having other coverage in addition to a qualified high-deductible
health plan may make you ineligible to contribute to an HSA.
Contributions* to your HSA may be made by the individual/employee,
by an employer or by joint employee/employer funding. You must be covered by a qualified
high-deductible health plan to put funds into your HSA. Contributions up to the
annual maximum can be made as late as April 15 of the following year. If you are
over 55, you can make additional "catch-up" contributions, as permitted by federal
law. There are also special rules for spouses.
Withdrawals are generally tax-free if used for qualified medical
expenses**. Or, you can pay for these expenses out of pocket and allow your HSA
funds to accumulate. If you withdraw funds from your HSA for reasons other than
those approved by the IRS, you may be subject to tax penalties.
Your HSA belongs to you
If you do not use your HSA funds, the balance carries over at the end of the year for
future use.
* You must satisfy certain criteria to be eligible to open and/or contribute to
an HSA. Check with your tax or legal advisor to see if you meet these criteria.
** For a list of health-related services and items you can use HSA funds for, go
to the Internal Revenue Service Web site at www.irs.gov
or call (800) TAX-FORM. Select IRS Publication 502, catalog #15002Q, titled "Medical
and Dental Expenses."
Blue Healthcare Bank has contracted with BCBSAZ to offer HSAs to BCBSAZ members who have enrolled in a qualified high-deductible health plan. Blue Healthcare Bank is a dba of HealthBenefit Bank, member FDIC.
Blue Cross and Blue Shield of Arizona and Blue Healthcare Bank are independent licensees of the Blue Cross and Blue Shield Association.
HSABank is a bank that has contracted with BCBSAZ to offer HSAs to BCBSAZ members who have enrolled in a qualified high-deductible health plan. HSABank is a division of Webster Bank, NA, member FDIC, and is not affiliated with BCBSAZ.
This provides only general information about HSAs. Legal requirements are subject
to change. BCBSAZ does not render tax, investment or legal advice. Please consult
with your tax or legal advisor to learn the details regarding health savings accounts.