2023 Benefits Guide Health Savings Account (HSA) Only available for those enrolled in the HSA Base and HSA Buy-Up medical plan(s) A Health Savings Account (HSA) is a tax-advantaged Advantages of an HSA savings vehicle available to individuals covered by a High Deductible Health Plan (HDHP). Funds in the account are • Balance rolls over each year and accrues used to pay for qualified medical, dental and vision expenses. interest, so you won’t lose your contributions An HSA is a great way to save for the future. You can set • Triple tax savings —you do not pay aside money from each paycheck now and save funds to federal tax* on: cover healthcare expenses that come up later. Plus, your contributions are free from federal income tax, so you’re • Contributions to the account stretching your healthcare dollars while lowering your • Spending on qualified expenses taxable take-home pay amount. WestCarewill also make contributions to your HSA if you • Interest that accrues enroll in the HSA Base or HSA Buy-Up plans. You must • Account is portable, so the funds are yours have active healthcare coverage in one of these plans even if you change medical plans next and an open and valid HSA account with Optum Bank to year or leave WestCarein the future receive WestCarecontributions. This is “free money” for you to use to pay for eligible healthcare expenses. • Use the funds for eligible medical, dental or vision expenses, including coinsurance HSA funds can only be used for yourself, your spouse and costs, prescriptions, glasses, orthodontia your taxable dependents. Expenses for domestic partners and more—now or in the future and/or otherdependents who do not qualify as tax dependents are not reimbursable under the HSA. • Money left in the savings account earns tax-free interest* • Once your account balance reaches $3,850 for self-only or $7,750 for family contributions, you may move any balance above that amount into mutual funds and direct your investment strategy *Tax treatment of HSAs for state tax purposes may vary by state. 14 WestCare