Health Savings Account

Health Savings Account

A Health Savings Account (HSA) is an individually owned account that you can use to pay health care expenses, now and in the future.

You can use it to pay for expenses now or save for the future if you don’t use all your HSA money by the end of the plan year. Note: Employees who live in Hawaii are not eligible for the HSA.

How the HSA works

The HSA is a tax-advantaged personal bank account that works with the Premium HSA and Basic HSA Medical plans. It allows you to set aside money to pay for eligible health care expenses. The account is yours to own and manage on your own. If you ever leave Baker Hughes, you’ll take this account with you. Click here to see an example of how contributing to an HSA can impact your taxes.

Baker Hughes pays your HSA account set-up fee and monthly service fee, which includes a no-cost debit card and a monthly statement. You can use the debit card for eligible purchases at merchant locations with no transaction charge, up to your available account balance. ATM cash withdrawals using your card, to reimburse yourself for eligible expenses, are subject to a fee of $2.50 per transaction (plus any fees that may be imposed by the owner of the ATM). For more information on other reimbursement options and fees associated with your HSA, contact Optum Bank at 1-866-743-6549.

Company contributions

If you enroll in the Premium HSA, Baker Hughes will contribute:

  • $500 for Employee Only
  • $750 for Employee + Spouse*
  • $750 for Employee + Child(ren)*
  • $1,000 for Employee + Family*

If you are hired after January 1, the company contribution amount will be prorated based on your date of hire. However, if you are hired on or after November 1, there will not be any company contribution amount and you will not be able to contribute to the HSA, even if you are enrolled in the Premium HSA.

If you enroll in the Basic HSA, Baker Hughes does not make a contribution to the HSA for you.

*Includes domestic partners and the child(ren) of domestic partners, as applicable.

2024 contribution limits

You can contribute pre-tax dollars to your HSA up to the IRS limits each year. The 2024 IRS contribution limits are:

  • $4,150 for individual coverage
  • $8,300 for family coverage levels
  • If you are age 55 or older, you can contribute an additional $1,000

Company contributions are included in the IRS limits. For example, if you enroll in the Premium HSA and elect Employee + Family coverage, Baker Hughes contributes $1,000 to your HSA and you can contribute an additional $7,300, for a total of $8,300 in 2024.

Payroll deductions

The amount you elect to contribute to your HSA will be deducted from your paycheck. If you enroll in the Premium HSA Plan for 2024, the employer contribution will be made at the time you get your second paycheck of 2024. You will not be able to make adjustments to your HSA contributions after November 1 of the current plan year.

Eligible expenses

Use the account to pay for medical, dental, vision, and prescription drug expenses. Examples of eligible expenses include: 

  • Medical and dental plan deductibles, copays, and coinsurance
  • Prescription drug copays and coinsurance
  • Certain over-the-counter drugs
  • Vision expenses

Refer to IRS Publication 969 for more information.

If you enroll in Medicare

If you enroll in Medicare while you are actively employed and you have elected an HSA, you will need to take action to stop contributions to your HSA. It is your responsibility to take action to prevent additional contributions to the HSA or you could face tax penalties.

Optum Go Green initiative

As a part of Optum's initiative to go green, Optum charges a fee of $1.50 for quarterly paper statements. If you want to avoid this fee, you can request electronic delivery of your quarterly statements. You can update your statement delivery preference on the Optum website or download the Optum Bank App on your mobile device.

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