Health Savings Accounts (HSA):

• Only an available option for those enrolled in our Consumer Driven Health Plan

• Members may contribute their own pre-tax money that they may then use on any healthcare costs at any time in their life

• Similar to an IRA in that it’s an account owned by the employee and the employee’s contributions, earnings and distributions are all tax-free (“i.e. triple tax savings!”)

• Similar to a Flexible Spending Account (FSA) but money in the account is never forfeited (Participants in an HSA may NOT participate in a Healthcare FSA.)

• LSS will contribute additional money into the employees’ HSA’s on their behalf – $500 per year ($20.83/pay period) for individual coverage and $1,000 per year ($41.66/pay period) for dependent coverage

• The 2024 limits on contributions set by the IRS are $4,150 for individuals and $8,300 if covering dependents. (The LSS contributions mentioned above count towards this annual limit. For example, since LSS is contributing $500 towards the individual limit of $4,150, the employee may only contribute an additional $3,650 of their own contributions before the IRS limit is reached). The 2025 limits on contributions set by the IRS are $4,300 for an individual and $8,550 if covering dependents too. (The LSS contributions mentioned above count towards this annual limit. For example, since LSS is contributing $500 towards the individual limit of $4,300, the employee may only contribute an additional $3,800 of their own contributions before the limit is reached.)

  • Please note: If you’re 55 years of age or older, you are eligible to make an annual catch-up contribution, which lets you contribute an additional $1,000 on top of the above annual contribution limits.

• With lower premiums upfront, but higher deductibles, members are encouraged to make contributions to the HSA to help save or prepare for potential expenses down the road (Members are responsible for paying 100% of their higher deductible prior to the plan paying any costs, except for free preventive care)

• If the employee keeps their medical costs down however, the employee keeps this money for future use (never goes away!)

• For more information and resources, please check out the links to the right.