Health Savings Account (HSA)

The HSA is a tax-advantaged savings account that you own.

With the Premera Blue Cross High Deductible Health Plan (HDHP), you are eligible to open and contribute money to a Health Savings Account (HSA) through Voya Financial. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.

The HSA has a triple-tax advantage that trumps even a 401(k) or Roth IRA. It also includes a custom mutual fund lineup, so you can invest your savings for the future. And, Avista will contribute to your account, too!

Benefits of an HSA

Put Money in Tax-Free*

You contribute to your HSA through pre-tax payroll deductions.

If you need to, you can change your contribution amount anytime.

Get Company Contributions

Avista will contribute $700 if you have employee-only medical plan coverage, or $1,500 for those with employee + 1 coverage.

If you are enrolled for employee + 2 or more coverage, you will not receive Avista’s HSA contribution.

Once you complete wellness initiatives, Avista contributes up to an additional $400.

Pay for Care Tax-Free**

Pay for eligible medical, dental, and vision expensesfor you and your family using your HSA debit card (provided sufficient funds are in your account).

Track your spending, check your balance, reimburse yourself, and more on the Voya Financial website.

Grow Money for the
Future — Tax-Free

All the money in your HSA is yours to keep, year after year.

You can build up savings through tax-free interest and even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead.

*Contributions are not subject to federal tax. However, HSA contributions are currently subject to state tax in CA and NJ, and both HSA and FSA contributions are subject to state tax in NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA and/or FSA.

**Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

Annual Contribution Limits

Keep in mind, the maximum amount you and Avista can contribute to your HSA is determined by annual limits that the IRS sets. If you are age 55 or older, you can contribute an additional $1,000 above these limits.

If you are age 55 or older, you can contribute an additional $1,000 above these limits.

Who is eligible for an HSA?

If you or your spouse have a health FSA or an HRA that pays or reimburses qualified medical expenses, you are not eligible to contribute to an HSA.

To establish and contribute to an HSA, you:

  • Must be enrolled in the Premera Blue Cross HDHP or another qualified high-deductible medical plan.
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.

You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.