HSA participation
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.
You cannot be covered by any other medical plan, including Medicare, Tricare or Health Flexible Spending Account unless that coverage is also a qualified high deductible plan.
How an HSA works
HSA’s are highly regulated tax favored plans. Review IRS Publication 969 for more information.
Video: Prime HDP (High Deductible Plan)
Start it. When you enroll in the HSA, you’ll receive a Welcome Kit from OptumBank to your mailing address on file with important information about opening your account. You must take immediate action to complete any requested steps from OptumBank to fully open and activate this account.
Information will include:
- How to register your account*
- When your debit card will arrive
- Downloading the Optum Bank mobile app
*Important! Employer contributions will be forfeited if your account is not fully opened (passed vetting) in the required time allowed.
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 All funds, contributions as well as any interest and investment earnings, can be withdrawn tax-free for qualified expenses.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 $2,000 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 2025, 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 01/01/2025. Your contribution limit may be higher if enrolled on or after 02/01/2025.
| Coverage Level | Salem Health’s contribution | Your contribution limit | 2024 HSA maximum contribution limit | |||
|---|---|---|---|---|---|---|
| Employee only coverage | $1,650* | $2,650* | $4,300 | |||
| Family coverage | $3,300* | $5,250* | $8,550 | |||
* Employer contribution is for benefit eligible employees with an HSA participation date of 01/01/2025.
Want to change your HSA contribution?
HSA participants can change their employee contribution once per month. Complete and submit this form. New elections are effective 1st of the month following submission of completed form.
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 the family Tier 1 deductible of $3,300, 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 posted after the second paycheck in: | |||
|---|---|---|---|---|
| If my HSA enrollment begin: | Employee only coverage | Employee and family coverage | ||
| 01/01/2025 | $1,650 | $3,300 | Jan. 2025* | |
| 02/01/2025 – 04/01/2025 | $1,237.50 | $2,475 | April 2025 | |
| 05/01/2025 – 07/01/2025 | $825 | $1,650 | July 2025 | |
| 08/01/2025 – 10/01/2025 | $412.50 | $825 | Oct. 2025 | |
| 11/01/2025 – 12/01/2025 | $0 | $0 | N/A | |
*Employer contribution will post to the first check in January.
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 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:
HSA and Medicare
Optum HSA Handbook
Video: What can an HSA do for me?
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