An HSA is a tax-advantaged medical savings account that allows you to save money for eligible expenses. You can only have an HSA if you are enrolled in a high deductible health plan. The Baker Hughes high deductible health plans are the Premium HSA and the Basic HSA.
Each year, you decide how much to contribute to your HSA account, though you cannot exceed the IRS limits. Your HSA contributions will be taken directly from your paycheck. An account will be established with Optum Bank on your behalf. Additional verification may be required by Optum Bank.
You will receive a debit card, and you can use the funds to pay for eligible medical expenses. This includes deductibles, copays, and coinsurance plus other qualified medical expenses. For more information about eligible expenses, click here.
The HSA has three tax advantages. Your contributions are made before your income is taxed, you don’t pay taxes on the account’s growth, and if you make withdrawals for eligible expenses, you don’t pay taxes on that money either.
Yes, if you enroll in the Premium HSA. The company contribution is:
If you enroll in the Basic HSA, you will not receive a company contribution.
Generally, you are eligible to open an HSA if you are:
The HSA is administered by Optum Bank.
You can contribute up to the IRS limit. The IRS limits for 2020 are $3,550 for individual coverage and $7,100 for family coverage. If you are age 55 or older, you can contribute an additional $1,000.
If you are enrolled in the Premium HSA, the company contributions count toward the IRS limits.
You own your HSA and the HSA balance is yours to keep, even if you enroll in a different plan or leave Baker Hughes.
You can contribute to an HSA only if you are enrolled in a high deductible health plan. The Baker Hughes high deductible health plans are the Premium HSA and the Basic HSA. There is no “use it or lose it” rule with the HSA, so the money rolls over from year to year and is yours to keep, even if you leave Baker Hughes. You can increase, decrease, or stop your HSA contributions anytime, for any reason.
You can contribute to a Health Care Flexible Spending Account if you are not enrolled in a high deductible health plan option. You have to use your funds by the deadline, or you forfeit them. Baker Hughes does not make contributions to the Health Care Flexible Spending Account, but you can contribute up to the IRS limit. Health Care Flexible Spending Account contributions cannot be changed during the plan year, unless you experience a Qualified Status Change, such as the birth of a child or marriage.
You cannot contribute to both an HSA and HCFSA during the same plan year.