Health Savings Account (HSA)
Charter Health Savings Accounts
Health Savings Accounts (HSAs) are designed to help reduce the skyrocketing cost of health insurance. Combined with a higher deductible health plan, HSAs give you more control over health expenses, yet still provide a safety net to help pay for major medical bills if surgery or hospitalization became necessary. Benefits of HSAs include:
- Reduces health insurance premiums.
- Offers the advantage of using pre-tax dollars to pay out-of-pocket medical expenses.
- Provides a saving account that allows accumulation of savings year to year.
Who is Eligible?
Anyone not receiving Medicare can open a HSA.
All participants must be enrolled in a high-deductible health insurance plan that conforms to Health Savings Account Guidelines. That usually includes a deductible of $1,000 to $5,000 for an individual and $2,000 to $10,000 for a family.
Limits
Your annual HSA contribution cannot exceed the deductible of your high deductible health plan. For calendar year 2008, the maximum amounts are $2,900 for an individual and $5,800 for a family. Participants 55 and over can make additional "catch-up" contributions each year until they enroll in Medicare. The catch-up contribution for calendar year 2008 is $900; however, that maximum will increase by $100 each year until it reaches $1,000 in 2009 (subject to IRS guidelines and rulings).
How it works
- Participants enroll in a high-deductible health plan through Charter Insurance or other insurance provider.
- HSA enrollment forms for individual and family plans are completed online at www.charterco.com or at any Charter Bank branch.
- Participants receive a Welcome Kit with an overview of their HSA and applicable disclosures. The kit also includes a signature card and beneficiary designation form, which are signed and returned to Charter.
- Charter opens an FDIC-insured transaction account, similar to a checking account, and gives participants a HSA debit card to use with the account.
Contributions
Contributions can be handled in a number of ways. Individuals and families can make deposits at their local branch or use Charter Online Banking or Charterline 24-hour Phone Banking to transfer funds to their HSA.
Distributions
Participants will primarily use their Charter Bank HSA debit card to pay providers; however, checks can also be used to pay medical service providers that do not accept HSA debit cards. Participants will receive monthly statements showing the details of each purchase and, if desired, images of cancelled checks.
Terms
- Minimum deposit $50
- No minimum balance required
- Free HSA debit card
Fees*
Set up fee $25.00
(waived for rollovers and transfers)
Monthly account fee $2.50
(waived on accounts with balances greater than $2,500)
* Other standard checking account fees (NSF, stop payments, etc.) apply to all HSAs.
Open a Charter Health Savings Account Today
Apply online or stop by any Charter Bank branch to open your HSA.
