The Health Savings Account
When you enroll in the HDHP, you have the option of contributing to a Health Savings Account (HSA), which you can manage online. The HSA is administered by WageWorks. You can use this tax-saving account now to help pay for eligible medical expenses for you and your family, as well as save for future health care expenses.
The HSA provides a triple tax advantage: money goes in tax-free, it grows tax-free, and it’s tax-free when withdrawn to pay for eligible medical expenses.
The Internal Revenue Service (IRS) limits the amount you can contribute to your HSA each year. For 2020, you and the University can contribute up to:
- $3,550 for individual coverage ($4,550 if you’re 55 or older)
- $7,100 for family coverage ($8,100 if you’re 55 or older)
For the 2020-2021 plan year, Penn will also contribute money to your HSA:
- $1,000 for individual coverage
- $2,000 for family coverage
Please note: Penn's contribution is prorated based on which quarter you enroll in the plan.
Example: If your benefit effective date is October 1st, Penn's contribution for individual coverage will be $750.00
An HSA ReminderYou cannot be enrolled in any other health coverage plan, including Medicare, union plans, or secondary coverage under a spouse. For other important HSA rules, read the Important HSA Rules document.
Managing Your Account With WageWorks/HealthEquity
You can easily manage and check your account 24/7 online or by calling 877-WageWorks (877-924-3967), Monday through Friday, 8am to 8pm Eastern Time, or Aetna at 1-888-302-8742.
Access these features on the WageWorks website:
- The HealthEquity app - The HealthEquity mobile app is a great way to stay connected and up to date on your account information.
- The HealthEquity Healthcare Card helps make it easy to pay for eligible expense items automatically with the funds in your account/s.
- Online payment features - You can pay your healthcare providers directly from your HealthEquity account of pay yourself back for eligible out-of-pocket expenses.
You choose the amount you’d like to contribute to your HSA, up to the annual limit, and make contributions by:
- Regular payroll deduction. Deductions are taken from each paycheck on a pre-tax basis. You can change your payroll deduction amount at any time in Workday or by calling the Benefits Solution Center powered by Health Advocate at 866-799-2329.
- Lump sum contribution. Choose any amount at any time and contribute on a post-tax basis via a check or an electronic funds transfer. Then claim your total contributions as a deduction when you file your taxes.
Paying for expenses
You can use your HealthEquity debit card to pay for eligible expenses (including your deductible and coinsurance amounts), which means no waiting for reimbursement. Or, you can pay out-of-pocket and use your HSA to pay for future expenses. The card works like a debit card; just swipe and go. Funds come directly from your HSA. No pin is required.
You can also use the card at general merchants and drug stores that have an industry standard (IIAS) checkout system that can automatically verify if the item is eligible for purchase with your account.
Investing Your Savings
If you don’t use all of the money in your HSA during the plan year, it rolls over to the next year. You can also take the money with you if you leave Penn or retire.
Once your balance reaches $500, you can invest it in a selection of investment funds through HealthEquity.