Health Savings Account (HSA)

A health insurance deductible is the amount you must pay before health insurance kicks in and starts paying. The deductible is an annual amount that usually resets at the beginning of the calendar year. Once you’ve hit your annual deductible, then your insurance kicks in and starts helping. The HDHP plan pays 80% of your health care costs until your total out-of-pocket maximum for the year is met.

When you enroll in a qualified HDHP, you’re eligible to open a Health Savings Account (HSA). An HSA is a personal savings account, funded by you and/or Belkin, that you can use to pay qualified out-of-pocket medical expenses with pretax dollars.

When are you eligible to open an HSA?

You are eligible to open and fund an HSA if you:

• Are enrolled in an HSA-eligible HDHP.
• Are not covered by other non-qualified high deductible health plans, such as your spouse’s non-qualified high deductible health plan, Health Care Flexible Spending Account or Health Reimbursement Account.
• Are not eligible to be claimed as a dependent on someone else’s tax return.
• Are not enrolled in Medicare or TRICARE.
• Have not received Veterans Administration benefits.

You can use the money in your HSA to pay for qualified medical expenses now or in the future. Your HSA can be used for your expenses and those of your spouse and dependents, even if they are not covered by the HDHP.

Tax Planning Benefit: Funds in your HSA roll over from year to year and are not subject to forfeiture like funds in a Health Care FSA and Limited Purpose Health Care FSA. This means your HSA funds can be used any time for medical expenses, or you can let your balance accumulate tax-free for later use, and build up savings for future medical expenses.

Tax Savings Benefit: Funds set aside in your Health Savings Account (HSA) can give you double the tax savings. Contributions to your HSA are tax-deductible* and the funds you use to pay for eligible expenses are tax-free. In addition, if you choose to invest your HSA funds, any earnings you receive from your investments are not taxed.

*The HSA is pre-tax federally and in all states excluding California, and New Jersey.

Employer Contributions

If you choose the HSA eligible medical plan for 2024, Belkin will contribute a pro-rated amount based on the number of months you participate in the HDHP.

Maximum Contributions

*Prorated for each month you participate in the HDHP.

**The IRS allows for an HSA Catch-Up Contribution of an additional $1,000 for eligible employees age 55 or older. Catch-up contributions can be made during the year by HSA-eligible participants who will turn 55 by year-end.

Note: The IRS doesn’t consider a domestic partner to be a spouse under federal tax law, regardless of state law exceptions. Therefore, you can’t withdraw funds tax-free to pay for your domestic partner’s qualified expenses, unless he or she is defined as a qualified tax dependent by the IRS.

Important!

HSA contribution limits are prorated based on the date you opened your HSA and the number of full months remaining in the calendar year. This helps you avoid taxes and penalties on excess contributions, per IRS regulations. You should consult your personal tax adviser with questions regarding your HSA and the filing of your tax returns.

The HDHP and HSA: How They Work Together

Together, your and Belkin’s contributions can cover a portion of your deductible and coinsurance.

Opening an HSA

The HSA is administered by Inspira. Once you enroll in a HDHP medical plan, you’ll receive a debit card to help manage your HSA payments. Funds available for payment are limited to the balance in your HSA.

You may open an HSA bank account with the financial institution of your choice; however, payroll deductions are available only for HSAs through Inspira.

Here’s what you need to do:

1. Go to inspirafinancial.com. Click Sign In.
2. If you’re a new user, click Create Your Profile and complete the required fields. Be sure to have your Inspira Card® nearby. You’ll be asked to enter part of your card number to help verify your identity.
3. Review the Online Services Agreement.
   • Check the box to confirm you understand and agree to the terms of the agreement.
   • Enter your initials in the text box.
4. Review the account fees and HSA Custodial Agreement.
   • Check the box to confirm you understand and agree to the terms of the agreement and fees.
   • Enter your initials in the text box and click Save and Continue.
5. Enter your personal information.
   • Select your marital status.
   • Choose your high-deductible health plan start date.
   • Select your health plan coverage type (individual or family) and click Save and Continue.
6. Enter your beneficiary information.
   • You can name a person, trust or your estate as your beneficiary.
   • If your beneficiary is a person, you’ll enter their first and last name, address, Social Security number and relationship to you. If you have more than one beneficiary, you’ll choose how you want the funds split between them. The total must equal 100 percent.
7. Review the summary page and click Continue to finalize your profile setup.

Important!

If you do not open your Inspira account within 60 days of your plan’s effective date, contributions will not be made to your account. This includes any funds Belkin would have contributed to your account on your behalf.

Keep in mind that you will only be eligible to receive Belkin’s employer HSA contribution if you elect the Cigna OAP HDHP Plan and open your HSA through Inspira.