Health Savings Account Benefits Overview
|Benefit||Plan Description||Key Features||What’s New This Year?|
Health Savings Account (HSA)
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 Sparrow Health HSA plan.
Caregivers must be enrolled in the Sparrow HSA health 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 Sparrow 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.
2022 IRS HSA maximum contribution limits increased to: $3,650 (single) and $7,300 (family); Contribution limits include any employer contributions.
If you have a healthcare Flexible Spending Account (FSA) in 2021 and are electing the Sparrow Health HSA plan for 2022, per the IRS you MUST use all of your 2021 medical FSA funds by 12/31/21 in order to open your HSA account January 1. Otherwise, the HSA account cannot be established until April 2022, which includes receipt of the employer contribution. Additionally, if your account is not established until April due to remaining 2021 FSA funds, any expenses incurred from January to March 2022 may not be paid for by funds from the HSA account.
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This is a summary of the benefits provided by each insurance carrier and it is not intended to fully describe the details of each benefit plan. Should any questions arise, the contracts in effect will take precedence.