Health Savings Account (HSA)

HSAs are tax-advantaged member-owned accounts that let you save pre-tax¹ dollars for future qualified medical expenses.

Today, many employers are looking for ways to save money on their employee health coverage are turning to consumer-directed health plans, or CDHPs.

• These plans have a higher deductible than most traditional plans.
• They place more of the decision-making power in the hands of the employee.
• These plans carry substantially lower premiums.
• They can be paired with a personal health savings account* (HSA).

BlueSaver and Blue Connect Savings Plus are our high-deductible consumer-directed health plans. Most members enrolled in these plans are eligible for an HSA. When a group chooses BlueSaver or Blue Connect Savings Plus for their group health coverage, employees can set up a MySmart$aver HSA that works directly with their plan benefits.

MySmart$aver HSAs offer:

• Convenience of a Visa-branded debit card
• Interest-bearing accounts with competitive interest rates
• Online and mobile account management tools
• Convenient ways to make deposits
• FDIC-insured stability
• Investment options

Learn more about MySmart$aver HSAs here and how to enroll your group here.

HSAs have numerous benefits for both employers and employees:

• Group insurance premiums and any contributions made to employees' HSAs are tax-deductible.
• In 2024, IRS rules allow members enrolled in a CDHP to deposit annually into their HSAs up to $4,150 for an individual policy and $8,300 for a family policy.
• In 2025, IRS rules allow members enrolled in a CDHP to deposit annually into their HSAs up to $4,300 for an individual policy and $8,550 for a family policy.
• Employees can withdraw funds for qualified medical expenses.
• The HSA belongs to the employee and goes with them, even if they change employers.
• Funds in the HSA account that are not used can accumulate from year to year until retirement.
• Employees can also withdraw funds for non-qualified medical expenses; however, these funds are included in gross income for tax purposes and are subject to a tax penalty of 20 percent. (The tax does not apply if the distribution is made after death or disability or after the individual attains the age of Medicare eligibility.)

Blue Cross and Blue Shield of Louisiana (Louisiana Blue) offers groups multiple solutions for their employees’ savings and spendings needs. To learn more about these solutions, click here.

¹HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

*HealthEquity, Inc. is an IRS authorized non-bank custodian of HSAs, and the preferred HSA custodian for eligible Louisiana Blue members enrolled in our high deductible health plans. Members who qualify may open an HSA with any HSA trustee or custodian and should seek guidance from a tax professional or financial advisor. Blue Cross and Blue Shield of Louisiana and HealthEquity are not engaged in rendering tax, legal or investment advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products. See IRS Publication 969 for more about HSAs.