Here's What You Need to Know

It's easy to determine if you're eligible for a Provident HSA.

You are eligible to contribute to an HSA if you meet all of the following requirements:

• You have coverage under an HSA-qualified High-Deductible Health Plan (HDHP)
• You have no other primary medical coverage (Other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted)
• You are not enrolled in Medicare
• You cannot be claimed as a dependent on someone else's tax return

You can use your HSA funds to pay for a variety of medical expenses.

Covered expenses include products and services such as: ambulance services, annual physical exams, chiropractic services, contact lenses and eyeglasses, dental services, home health care, hospital services, insurance premiums, laboratory fees, long-term medical care, medicines, nursing home and nursing services, operations, physical therapy, psychiatric care, visual correction surgery, x-rays, and more.

Annual HSA Maximum Contribution Limits

2011 IRS Limits	Single Plan	Family Plan
Minimum Deductible	$1,200	$2,400
Maximum Contribution Limit	$3,050	$6,150
Catch-up Contribution (55+)	$1,000	$1,000

2012 IRS Limits	Single Plan	Family Plan
Minimum Deductible	$1,200	$2,400
Maximum Contribution Limit	$3,100	$6,250
Catch-up Contribution (55+)	$1,000	$1,000

 

Catch-up contributions.In addition to the standard HSA contribution limits shown in the table above, if you have reached age 55 before the close of a taxable year, you may also contribute an additional amount, known as a "catch-up" contribution. The maximum catch-up contribution you can make is $1,000.

Other contribution information.You can deduct any contributions you make to your Provident HSA when completing your federal income tax return. Contributions must stop once you are enrolled in Medicare; however, you can keep the money in your account and use it to pay for medical expenses, tax-free.

What is a High-Deductible Health Plan?

You can open and contribute to an HSA only if you have coverage under an HSA-qualified High-Deductible Health Plan (HDHP). An HDHP is a health insurance plan with an annual deductible that is at least:

2011

• $1,200 or more for individuals
• $2,400 or more for families

2012

• $1,200 or more for individuals
• $2,400 or more for families

Preventive care. Coverage for preventive care does not disqualify a plan from being considered an HDHP. Preventive care includes periodic physicals, routine prenatal and well-child care, immunizations, smoking cessation programs, weight-loss programs, and health screening tests.

Out-of-pocket expenses. Out-of-pocket expenses are those not paid by the plan due to plan deductibles, co-payments, or amounts other than plan premiums. For plans that use a network of providers, the annual deductible and maximum out-of-pocket costs are determined using the assumption that all services will be obtained inside the network.

Limits to out-of-pocket expenses. Annual out-of-pocket expenses, including deductibles, co-payments, and co-insurance, cannot exceed:

Maximum Annual Out-of-pocket Expenses

2011	2012
$5,950 for individuals	$6,050 for individuals
$11,900 for families	$12,100 for families