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.
The Town of Wellesley will set up a Health Savings Account (HSA) for any Non-Medicare eligible Town retiree who enrolls in a High Deductible Health Plan (HDHP). In addition to setting up the account, the Town will contribute $1,000 into an HSA for each Non-Medicare eligible Town retiree selecting an individual HDHP and $2,000 into an HSA for each Non-Medicare eligible Town retiree selecting a family HDHP. Deposits into these accounts will be made at three different intervals during the course of the benefit year in equal installments. The payout months for those installments will be September, December and March.
Be advised that that if you are on Medicare of any sort, there are some restrictions with regard to your ability to have and use an HSA. Please review the HSAs and Medicare document found here to understand the impact of Medicare on the ability to have and use an HSA.
Health Equity Partners is the HSA plan administrator for the Town of Wellesley. 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.