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The HSA Component

During Annual Enrollment (October 22 through November 19), a new High Deductible Health Plan (HDHP) with Health Savings Account (HSA) will be offered for your 2013 benefits coverage. If you enroll in the HDHP, you will have the opportunity to open an HSA. The HSA is essentially a bank account with OptumHealth Bank that allows you to save and pay for eligible health care expenses. The HSA is a great way to build up dollars to pay for your health care expenses today — or in the future.

Act Now: Open Your HDHP's Health Savings Account by December 19, 2012

In order to ensure that your January payroll contributions and, if applicable, the University contributions are deposited into your account on January 1, 2013, you must open your account with OptumHealth Bank by December 19, 2012. To access the HSA enrollment site, click here and follow the steps to open your account.

Understanding the HSA option

HSAs function very similarly to a bank account but are dedicated to health care expenses. If you don't use all the money, your account rolls over from year to year. You choose to "spend" or "save" these dollars to pay for your eligible medical, dental, prescription, or vision expenses. Similar to a 403(b), you can contribute to your HSA on a pre-tax basis up to IRS limits. For 2013, you may contribute up to $3,250 for individual coverage and $6,450 for family coverage into the HSA.

HDHP with HSA

You decide how to use your HSA funds. Click for more:

Button: display or hide Pay for eligible health care expenses as you incur them.

This includes hospital services, prescriptions, dental, vision, and other eligible health care expenses. Note: federal law does not allow you to be reimbursed for expenses through an HSA for non-tax-qualified dependents. If you enroll a domestic partner or a same-sex spouse in the HDHP, he/she must be a tax-qualified dependent in order to have his/her expenses reimbursed through an HSA. We suggest that you seek guidance from your personal tax advisor to confirm the eligibility of any dependents for whom you plan to take HSA distributions.

Button: display or hide Save for future medical expenses.

You can use the HSA to build additional income for health care expenses in future years — or retirement.

Button: display or hide Pay expenses even after you leave NYU.

Even if you leave NYU, the funds in your HSA (both your contributions and any contributions from NYU) are yours to use for eligible health care expenses. Beginning at age 65, you can use your HSA funds for medical expenses not covered by Medicare.

Button: display or hide Be aware of penalties for non-qualified health expenses.

Non-qualified health expenses reimbursed through your HSA are subject to a 20% penalty in addition to income tax.

HDHP Family

HSA FAQs

How do I pay my health expenses with the HSA?

When you enroll in the HDHP option and open an HSA, OptumHealth Bank will provide you an HSA MasterCard to give you a convenient way to access your HSA funds when you need them. Simply use your HSA MasterCard to pay for covered medical, dental, or vision expenses at participating locations (e.g., your doctor’s office or in-network retail pharmacies). The funds you use will be automatically deducted from your HSA. Remember, the HSA works just like a traditional bank account — you must have enough funds in your account to cover the expenses you're paying.

How — and when — do I qualify for the HSA?

You are not eligible for the HSA if you are covered under another plan (e.g., a spouse’s plan) unless that plan is a qualifying High Deductible Health Plan. In order for your HSA to be established on January 1, 2013, your Health Care Flexible Spending Account (FSA) balance for 2012 must be exhausted by December 31, 2012. Health Care FSA claims must be submitted with all required documentation by December 21, 2012, to ensure that your payments are processed before the end of the year. If you have a balance remaining in January, you can enroll in the HDHP with HSA option; however, your HSA account will open on April 1, 2013. In that case, only expenses incurred after March 31, 2013, can be reimbursed from the HSA.

What are differences between an FSA and HSA?

The FSA is a spending account, while the HSA is a savings account. With an FSA, you are expected to spend the money you have set aside within the year it is set aside, while with an HSA you may save the money until you need it — even if you do not need the funds until well into the future. Another key difference is the FSA features a "use it or lose it" rule, with any unused money you have set aside for that year forfeited. This rule does not apply to the HSA.

Am I able to maintain both an FSA and HSA?

U.S. federal law allows you to enroll in either an HSA or the Health Care FSA in one plan year. You may not enroll in the Health Care FSA for 2013 if you choose to enroll in the new HDHP with HSA option.

Does NYU contribute to my HSA?

If you earn less than $75,000 per year, NYU will contribute to your HSA:

  • Less than $50,000 = $500 contribution from NYU
  • $50,000 - $74,999 = $250 contribution from NYU
  • $75,000 and above = $0 contribution from NYU

HSA contribution limits for 2013 include your contributions and NYU’s contributions, if applicable:

  • Under age 55: $3,250 individual coverage; $6,450 family coverage
  • Age 55 or older: $4,250 individual coverage; $7,450 family coverage

To view a comprehensive list of HDHP with HSA Plan frequently asked questions in PDF, click here.

To view a list of mutual funds that OptumHealth Bank HSA account holders have the option to invest in, click here (PDF).

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