HSA Information

  • If you enroll in the High Deductible Health Plan (HDHP) option, you may be eligible for a college-sponsored Health Savings Account (HSA), administered by Optum Bank
  • Along with lower monthly premiums than the PPO Plan, in 2017 Luther is making a contribution to your HSA depending on the coverage tier you enroll in:
    • Employee Coverage - $600 annually (contributions of $300 in January 2017 and $300 in July 2017)
    • EE + 1 Coverage - $1,200 annually (contributions of $600 in January 2017 and $600 in July 2017)
    • Family Coverage - $1,200 annually (contributions of $600 in January 2017 and $600 in July 2017)
  • HSAs offer you the following advantages:
    • Tax Savings. You contribute pre-tax dollars to the HSA. Interest accumulates tax-free and funds are tax-free to withdraw for qualified medical expenses
    • Reduce your out-of-pocket costs. You can use the money in your HSA to pay for eligible medical expenses and prescriptions
    • Invest the funds and take them with you. Unused account dollars are yours to keep even if you retire or leave the college. You can also invest your HSA funds so that your available health care dollars can grow over time
    • The opportunity for long-term savings. Unlike Flexible Spending Accounts (FSA), HSAs do not have a "use it or lose it" rule. Unused HSA funds roll over from year to year--money you can use to reduce future out-of-pocket health expenses. You can even save HSA dollars to use after you retire