decorative photograph

Health Savings Account

The Health Savings Account (HSA) is a triple tax-advantaged savings account available to employees enrolled in either the UnitedHealthcare (UHC) Basic HSA or Premium HSA medical plans (the "high deductible health plans"). The Basic HSA and Premium HSA plans include two components:
  • Medical plan coverage through a high deductible health plan; and
  • The opportunity to participate in a separate Health Savings Account (HSA) that can be used to pay for certain qualified medical expenses on a pre-tax basis.
This section of the Stryker benefits summary describes some key features of the HSA that you can establish to complement the UHC Basic and Premium HSA medical plans. Please refer to the Medical benefits section of your Stryker benefits summary for information about the UHC Basic and Premium HSA medical plans (the high deductible health plans).
Highlights of the HSA
The HSA, administered by UnitedHealthcare (UHC) through OptumBank, offers a way to save for your out-of-pocket medical expenses, such as expenses incurred before the medical plan deductible is met, or your share of covered medical expenses.
  • You contribute to the Health Savings Account with before-tax deductions from each paycheck (lowering your taxable income).
  • Funds can be withdrawn tax-free to pay for eligible healthcare expenses and money in the account rolls over from year to year.
  • The money in your account grows with tax-free interest.
  • Once you reach a balance of $2,100, you have the option to invest some of your balance and potentially grow your account with tax-free earnings.
Keep in mind that IRS rules prohibit you from participating in both an HSA and a health care flexible spending account (HCFSA). Therefore, you are not eligible to participate in the HCFSA if you are enrolled in the UnitedHealthcare Basic HSA or Premium HSA plans. You can, however, participate in the day care (child and adult) flexible spending account (DCFSA).
The Health Savings Account is not governed by the Employee Retirement Income Security Act of 1974 (ERISA). For example, ERISA requirements such as providing a Summary Plan Description, filing an annual report (Form 5500 Series), or making a summary annual report available do not apply to Health Savings Account (HSA) participation
You gain choice and control over your health care decisions and spending when you establish your HSA to complement the high deductible health plan coverage provided through the UHC Basic HSA or Premium HSA plan described in the Medical benefits section of your Stryker benefits summary.
The HSA can help you cover, on a tax-free basis, medical plan expenses that require you to pay out-of-pocket, such as deductibles, copayments or coinsurance. It may even be used to pay for, among other things, certain medical expenses not covered under the medical plan design. Amounts may be distributed from the HSA to pay non-medical expenses; however, these amounts are subject to income tax and may be subject to a 20% penalty if withdrawn before age 65.
What is an HSA?
An HSA is a tax-advantaged account that you can use to pay for qualified health expenses that you or your eligible dependents incur. HSA contributions:
  • Accumulate over time with interest or investment earnings (if applicable).
  • Are portable after employment.
  • Can be used to pay for qualified health expenses tax-free or for any other expense on a taxable basis.