How does it work?

Individual HSAs are established and funded

Pre-tax payroll deduction makes it easy for employees to fund their HSAs. Contributions are sent to Charter One to be deposited into employees' accounts. Employees must have coverage under an HSA-compatible High Deductible Health Plan to be eligible to contribute to an HSA. If you don't have an HDHP yet, contact your health insurance professional to learn more.

HSA funds pay for qualified medical expenses

Employees can use the money in their Charter One HSA to pay for any IRS-qualified medical expenses before they reach the deductible in their HDHP. Qualified expenses can be paid with the Charter One HSA Debit MasterCard® or with HSA checks. To review a partial list of qualified expenses, review IRS Publication 502. A federal penalty tax of 20% may apply to non-qualified withdrawals.

Employers can make HSA contributions

Both the employer and employee can contribute to a Charter One HSA, up to the annual contribution limits set by the IRS. Employer contributions are generally tax-deductible to the company. Employer contributions into employee HSAs increases plan participation and satisfaction.

FDIC-insured up to allowable limits

The Charter One HSA deposit account is FDIC-insured up to allowable limits. HSA balances roll over year after year. If an employee leaves the company, their HSA goes with them. Employers do not have access to employees' Health Savings Accounts.