Learn About & Select A Health Plan
Case studies in savings The following illustrations show how an
individual and a family, rolling over unused funds, might use a typical HSA
over a three-year period. Keep in mind that interest may be added to and
administration fees may be deducted from the HSA account.
All cost information below is for example purposes only and does not
necessarily reflect actual charges, your plan or account rules or the
arrangement your employer will offer you. The illustrations are based on
hypothetical health plans.
Case Study 1
Mary has a $1,500 High-Deductible Health Plan and an HSA plan that she
contributes $1,000 to annually. Her employer contributes $500 to the HSA for a
total annual contribution of $1,500.
Year 1
| $1,500 |
HSA contribution |
| -$300 |
Medical expenses applied to the deductible and paid from the HSA |
| $1,200 |
HSA balance to be rolled over into year 2. |
In year 1, Mary sees her physician in his office several times for a minor
medical problem and has $300 applied to the deductible. She uses $300 from her
HSA leaving a balance of $1,200 in unused HSA funds that will be rolled over
into year 2.
Year 2
| $1,200 |
HSA rollover from year 1 |
| +$1,500 |
Contribution for year 2 |
| $2,700 |
HSA balance for year 2 |
| -$1,500 |
Medical expenses applied to the deductible and paid from the HSA |
| -$225 |
Prescription coinsurance amount paid from HSA |
| -$105 |
PCP/Specialist office visit copays paid from the HSA |
| $870 |
HSA balance |
| -$700 |
Medical expenses not covered by plan but paid from the HSA |
| $170 |
HSA balance to be rolled over into year 3 |
In year 2, the $1,200 rollover is combined with the $1,500 total contributions
for an HSA balance of $2,700. During the year Mary has an inpatient hospital
stay for an elective surgical procedure, for which $1,500 is applied to her
deductible. In addition, Mary sees a physician on three occasions during the
year. She has two visits with her PCP and she pays a $30 copayment each time.
Her physician refers her to a specialist for further treatment and she pays a
$45 copyament. Therefore her total office visit copayments are $105. Also, she
has $225 in prescription coinsurance costs for drugs she gets from her local
pharmacy following her hospital stay. Mary also incurs $700 in medical costs
for over-the counter medications and contact lenses, which are not covered by
her health plan but are considered qualified HSA expenses, and she chooses to
use her HSA funds to pay for these items. The $1,500 applied to her deductible
for her hospital stay, $105 in office visit copayments, $225 in prescription
coinsurance costs, and $700 in other non-covered but HSA qualified expenses are
reimbursed from her HSA leaving a balance of $170 to be rolled over to year 3.
Year 3
| $170 |
HSA rollover from year 2 |
| +$1,500 |
Contribution for year 3 |
| $1,670 |
HSA balance for year 3 |
In year 3, the year 2 rollover of $170 is added to the year 3 annual
contribution of $1,500 for an HSA balance of $1,670.
Case Study 2
The next illustration is a family plan. Bob, his wife Jane, and their two
children have a $5,000 High-Deductible Health Plan and contribute $2,000
annually to their HSA. Bob’s employer has elected to contribute $2,000, for a
total annual contribution of $4,000.
Year 1
| $4,000 |
HSA contribution |
| -$1,000 |
Medical expenses applied to the deductible and paid from the HSA |
| $3,000 |
HSA balance to be rolled over into year 2. |
In year 1, the children see their pediatricians for annual exams and the health
plan covers the expense at 100% with no deductible. In addition, the family has
$1,000 in expenses for an emergency room visit and other physician visits
applied to the deductible. The HSA is used to reimburse Bob and Jane for the
$1,000 in emergency room expenses, but not the other physician visits applied
to the deductible, leaving an HSA balance of $3,000 to be rolled over into year
2.
Year 2
| $3,000 |
HSA rollover from year 1 |
| +$4,000 |
Contribution for year 2 |
| $7,000 |
HSA balance for year 2 |
| -$5,000 |
Medical expenses applied to the deductible and paid from the HSA |
| -$225 |
Prescription coinsurance amount paid by HSA |
| $1,775 |
HSA balance |
| -$1,000 |
Medical expenses not covered by plan but paid from HSA |
| $775 |
HSA balance to be rolled over into year 3 |
In year 2, the $3,000 in rollover funds is combined with the $4,000 annual
total contribution for an HSA balance of $7,000. Jane is hospitalized for an
elective surgical procedure and the family incurs $5,000 in medical expenses
applied to the deductible. In addition, the family has prescriptions that
result in coinsurance costs of $225. The family also incurs $1,000 in other
medical expenses not covered by the health plan but considered qualified HSA
expenses including eyeglasses, over-the-counter medications, and acupuncture
treatment. Bob and Jane use the HSA account for reimbursement of the $5,000
deductible, $225 in prescription coinsurance, and $1,000 in other medical
expenses from the HSA, leaving $775 to be rolled over into year 3.
Year 3
| $775 |
HSA rollover from year 2 |
| +$4,000 |
Contribution for year 3 |
| $4,775 |
HSA balance for year 3 |
In year 3, the year 2 rollover of $775 is added to the annual contribution of
$4,000 for a total beginning HSA balance of $4,775
