Health Savings Account (HSA)

Health Savings Account

Our High-Deductible Health Plan (HDHP) with Health Savings Account (HSA) offers comprehensive health care coverage at a lower premium and higher deductible than traditional health care plans. As its name suggests, the plan also features an HSA. You can use funds in this account to pay for eligible services, or you can choose to pay for these expenses out of your own pocket and save your HSA funds for future expenses on a tax-free basis. Note: You can only use HSA funds as they are deposited in your account. You can always reimburse yourself later once you have accumulated funds in your account.

  1. How Your HSA Is Funded
  2. Qualified Health Care Expenses
  3. HSA Restrictions

League City Contributions

If you enroll in the HDHP with HSA , you will receive an annual League City contribution of $1,500 for individual coverage and $2,000 for all other tiers into an HSA. This contribution is meant to partially offset the HDHP with HSA’s higher deductible.

Your Contributions*

There are several ways to contribute money to your HSA:

  • Pre-tax contributions through payroll deductions
  • After-tax cash contributions that are deductible when you file your taxes
  • Catch-up contributions up to $1,000 per year if you are over age 55 (until you enroll in Medicare)

Total Annual Contribution Limit 

It is important to note that your contributions, when combined with any contributions from League City, may not exceed the IRS annual maximum of $3,550 for individual coverage and $7,100 for family coverage in 2021. Note: Individuals 55 and older may make additional “catch-up” contributions up to $1,000 each year until they enroll in Medicare.

*You must be enrolled in a qualified high-deductible health plan to contribute to an HSA.