Health Savings Account (HSA) – Salem Health Hospitals & Clinics

HSA participation and eligibility

The HSA is only eligible to those enrolled in the High Deductible Medical Plan (Prime – HDP). Participants must intentionally elect during their enrollment opportunity for a minimum of $.01 annual election to be eligible for the Salem Health pretax contribution.

In addition to enrolling in the High Deductible Medical Plan (Prime – HDP), there are additional eligibility rules set by the IRS, which include the following:

You cannot be covered by any other health plan that is not a qualified High Deductible Health Plan (HDHP).
You cannot be currently enrolled in Medicare or TRICARE
You cannot be covered by a Health Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA), including through a Spouse’s coverage
You cannot have received Veterans Administration (VA) benefits within the past three months except for preventive care. If you are a veteran with a disability rating from the VA, thisexclusion does not apply.
You cannot be claimed as a dependent on another individual’s tax return

If you waive the HSA, by choice, or you are not otherwise eligible according to the above requirements, you are eligible to elect the Health Flexible Spending Account through Salem Health.

Employer contributions will be audited prior to being issued to determine the coordination of benefits for employees who choose to double cover each other and/or dependents under the Prime HDP medical plan. Reduced employer contribution may apply.

How an HSA works

HSA’s are highly regulated tax favored plans. Review IRS Publication 969 for more information.

Important! Employer contributions will be forfeited if your account is not fully opened (passed vetting) in the required time allowed.

Optum Bank may reach out requesting additional information to confirm your identity. Be sure to respond to the requested information timely to avoid forfeiture of the employer contribution.

HSA FAQs

HSA Vetting Process

Use it. You can use the funds in your account to pay for qualified health care expenses, such as the deductible and co-insurance. All funds, contributions as well as any interest and investment earnings, can be withdrawn tax-free for qualified expenses. A complete list of eligible expenses is available in IRS publication 502 or on Optum’s Qualified Medical Expense Search Tool.

Note: HSA dollars are generally not eligible for Domestic Partner or Domestic Partner’s children expenses. See your tax professional for more information.

HSA Qualified Medical Expenses

Keep it. The funds in your account, whether employer or employee contributed, are always yours to keep. For more information on how an HSA works, visit Optumbank.com.

Triple tax savings

HSAs have three tax advantages.

Contributions made into your HSA are pre-tax, reducing the amount in taxes you pay each pay period.
If you have more than $1,000 in your account, you can invest and grow your money, tax-free.
Monies you take out of your HSA are not taxed when used for eligible medical expenses.

The table below shows the maximum amount that can be contributed to your HSA in 2026, how much Salem Health will contribute, and the total contribution you can make*.

*Salem Health’s contribution and Your contribution limit is for benefit eligible employees with an HSA participation date of 01/01/2026. Your contribution limit may be higher if enrolled on or after 02/01/2026.

Coverage Level	Salem Health’s contribution	Your contribution limit	2026 HSA maximum contribution limit
Employee only coverage	$850*	$3,550*	$4,400
Family coverage	$1,700*	$7,050*	$8,750
Age 55 or older? You can contribute an additional $1,000 per year.

* Employer contribution is for benefit eligible employees with an HSA participation date of 01/01/2026.

Want to enroll in or change your HSA contribution?

HSA participants can change their employee contribution once per month in your MyHR portal via Benefits >Life Events > HSA Contribution Change. New enrollments or election changes are effective 1st of the month following submission of completed event.

The below table shows the employer contribution amount based on the date your HSA enrollment begins.

Employees must be active at work per the contribution schedule in order to receive the employer contribution.
The intent of the employer contribution into the HSA, regardless of how a family enrolls, is to cover no more than 50% of the family Tier 1 deductible of $3,400, and not beyond this amount.
Employer contributions will be audited prior to being issued to determine the coordination of benefits for employees who choose to double cover under the Prime HDP medical plan. Reduced employer contribution may apply.

	Amount Salem Health will contribute to your HSA			Contribution deposited in HSA after the second paycheck in:
If my HSA enrollment begins:	HSA Single Employee only HDP coverage	HSA Family Employee plus one or more enrolled dependents in HDP coverage
01/01/2026	$850	$1,700	Jan. 2026*
02/01/2026 – 04/01/2026	$637.50	$1,275	April 2026
05/01/2026 – 07/01/2026	$425	$850	July 2026
08/01/2026 – 10/01/2026	$212.50	$425	Oct. 2026
11/01/2026 – 12/01/2026	$0	$0	N/A

*Employer contributions will be sent to Optum on the first contribution file in 2026 and reflected in the YTD amount following the first paycheck.

Optum Bank Health Savings Account Calculator

Use this calculator to estimate the short and long term benefits of contributing to an HSA.

HSA balance rollovers

The money in your HSA rolls over from year to year—you never have to worry about losing the money in your account.

HSA and Medicare

When you attain age 65 and are enrolled in any type of Medicare, you can no longer contribute to an HSA, but you can use the money to pay for qualified medical expenses. If you use the money on non-qualified expenses, you will be required to pay income tax on that amount (as well as a penalty if you are under age 65). See your tax professional for more information.

Important information regarding HSA and Medicare: