Health Savings Account (HSA)

HSA Enrollment Form

Allows Caregivers to make the most of their earnings by setting aside tax-free dollars for medical, dental and vision expenses. Works in conjunction with the UM Health HSA plan.

Caregivers must be enrolled in the UM Health HSA plan to be enrolled in the HSA, which can be used to pay for qualifying out-of-pocket medical, dental, and vision expenses. Please note: HSA funds used to pay out of pocket dental and vision expenses do not go toward a Caregiver’s annual health plan deductible. The HSA account is established upon enrollment into the UM Health HSA plan.

Sparrow employer contribution $750 (single) or $1,500 (family).

Employer Contributions as a result of open enrollment, or continued participation in the Sparrow Health HSA plan, will be processed after the first pay period in January. All other HSA Employer Contributions will be prorated monthly based on benefit effective date and deposited within 30 days of the benefit election date. Please contact HR for further details.

HSA enrollees are not eligible for the healthcare Flexible Spending Account.

Note: Health Savings Accounts are not available to Caregivers enrolled in a Health Care Flexible Spending Account. You also may not contribute to an HSA if you are enrolled in Medicare Part A and/or Part B. 

Caregivers electing HSA/FSA benefit options are responsible to manage compliance with IRS HSA/FSA rules. Note regarding contributions: Sparrow automatically makes a one-time annual employer contribution to your HSA account, pro-rated based on effective date. Caregivers are responsible for managing annual HSA/FSA contributions to ensure that the annual IRS limit is not exceeded. Caregivers who should find they have over-contributed in any calendar year would be responsible to request the HSA vendor to distribute any excess contributions from their account by April 15 of the subsequent year.

The IRS increased the minimum deductible amount for qualifying High Deductible Health Plans (HDHP) effective 1/1/25 from $1,600 Individual / $3,200 Family to $1,650 Individual /$3,300 Family. In order for the UM Health HSA Plan to remain a qualified HDHP allowing participants to contribute to their corresponding HSA account, the annual In-Network deductibles must change to the IRS minimum.

The good news is that the IRS also increased the annual contribution limit as well, increasing the Individual amount by $150 and the family amount by $250.

If you have a healthcare FSA in 2024 and are electing the Sparrow Health HSA plan for 2025, per the IRS you MUST use all of your 2024 healthcare FSA funds by 12/31/24 in order to open your HSA account January 1. Otherwise, the HSA account cannot be established until April 2025, which includes receipt of the employer contribution. Additionally, if your account is not established until April due to remaining 2024 FSA funds, any expenses incurred from January to March 2025 may not be paid for by funds from the HSA account.

2025 IRS HSA maximum contribution limits increased to: $4,300 (single) and $8,550 (family); Contribution limits include any employer contributions.

The UM Health plans, administered by PHP, no longer require a Prior Authorization (PA) for Physical or Occupational Therapy. Caregivers are now able to access Physical and Occupational therapy services with either a prescription or referral.