Benefits for 2023
Health Savings Account (HSA)
FOR 2023 NY Kids Club IS OFFERING A HEALTH SAVINGS ACCOUNT (HSA) FOR PLANS 3 & 4.. THIS IS HOW AN HSA WORKS:
A health savings account (HSA) is a health care account and savings account in one. The main purpose of this account is to offset the cost of a qualifying high deductible health plan (HDHP) and provide savings for your out-of-pocket eligible health care expenses – those you and your tax dependents may have now, in the future, and during your retirement. This is a “portable” account. You own your HSA! It’s included in your employee benefits package, but after you set up your account, it’s yours to keep, even if you change jobs or retire. Once your HSA is established, money is contributed to your account by you, NY Kids Club or friends and family, and you can then use your HSA dollars tax-free to pay for eligible health care expenses. You save money on expenses you’re already paying for, like doctors’ office visits, prescription drugs, and much more. Best of all, you decide how and when to use your HSA dollars.
HOW THE HSA WORKS:
TheIRSregulationsallowyou,viatheHSA, to contribute on a pre ‐ tax basis $3,850 for single coverage and $7,750 for employee and dependent coverage. In the year you turn 55, you are entitled to contribute an additional $1,000. If you are on Medicare, the IRS does not allow pre ‐ tax contributions. Employees who are enrolled in Medicare are not eligible to participate in the HSA as of the firstdayof the month theyturn65and enroll in Medicare. If you are 65 and not enrolled in Medicare, you can still participate inthe HSA. If you are enrolled as a family, make an HSA contribution and turn 65 and enroll in Medicareduring the year,your contribution will be adjusted in the month you turn 65 and are enrolled in Medicare. You are not required to participate in the HSA plan if you enroll in the HDHP. However, it is a significant tax savings benefit to consider. Please keep in mind that the HSA concept is a long-term commitment and carries over from year to year. This means there is a full rollover of unused funds to the next calendar year. HSA funds roll over from year to year and accumulate in your account. There is no “use -it-or- lose- it” rule with HSAs, and you decide how and when to use your HSA funds, which can be used for eligible expenses you have now, in the future, or during retirement. And when you have a certain balance in your HSA, investment opportunities are available.
Refer to your HSA documentation for more information.
This booklet provides only a summary of your benefits. All services described within are subject to the definitions, limitations, and exclusions set forth in each insurance carrier or provider’s contract.
2023 Employee Benefit Guide
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