A Health Savings Account (HSA) is a tax-advantaged medical savings account that individuals who enroll in a high-deductible health plan (HDHP) are eligible for. The funds contributed to an HSA are not subject to federal income tax at the time of deposit and HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the employee and are portable.
The Town of Wellesley will set up a Health Savings Account (HSA) for any benefit eligible employee who enrolls in a High Deductible Health Plan (HDHP) during the FY19 Open Enrollment period. In addition to setting up the account, the Town will contribute $1,000 into an HSA for each benefit eligible Town employee selecting an individual HDHP and $2,000 into an HSA for each benefit eligible Town employee selecting a family HDHP. The Town will be offering a special early adopter program which will provide family subscribers a bonus of $1,000. More information to come!
Health Equity Partners will be working with the Town of Wellesley to administer the HSA program. Health Equity Partners offers a variety of member tools that can be found here.
Below are some additional resources to help explain how HSA's work.