Health Savings Account (HSA)

A Health Savings Account (HSA) paired with the Anthem HSA medical plan is an account that allows you to contribute pre-tax dollars to pay for qualified medical expenses that arise throughout the year. As part of your enrollment in the Anthem HSA medical plan, the University also makes an annual contribution to your HSA each year of $500 annually for an individual plan or $1,000 with a plus one or family plan (for employees enrolling in the Anthem HSA medical plan on or after July 1, these values are reduced by 50%). Unlike other spending accounts, the balance of your HSA rolls over every year. Best of all, the savings in your account always belong to you, even if you separate from Notre Dame. To learn more about the benefits of an HSA Account, view the short video below.

If you are considering enrolling in the Anthem HSA medical plan for the first time, or just looking for information on how to maximize the use of your HSA, consider the Four Things to Know about a Health Savings Account.

Because your HSA contributions are deducted from your paycheck before taxes are calculated, HSAs can help you save money by reducing your taxable income. In fact, the HSA is the only account that offers triple tax savings – contributions, any investment earnings, and distributions are free from federal tax when used on qualified medical expenses.

Not only may an HSA be used for medical spending in the short term, but it also has growth potential. Notre Dame’s HSA is administered by Fidelity, providing an opportunity for you to invest your contributions in a variety of investment options – including stocks, bonds, and mutual funds – for potential growth of your account over time. Education on HSAs, investments, expenses and more is available through Fidelity by visiting netbenefits.com/nd or calling 877-963-0242.

How Does an HSA Work?

Prior to enrolling in an HSA, you should estimate the amount of eligible out-of-pocket health care expenses you will incur during the upcoming year that you would want to pay from this account. Using this estimate, you can then decide how much you want to contribute to the HSA. Your HSA contribution may be adjusted at any time during the year by visiting mybenefits.nd.edu.

Your HSA contribution may be adjusted at any time during the year by visiting mybenefits.nd.edu. More details on the process for changing your HSA contributions after open enrollment can be found in the HR Top 5 FAQ Answers.

Upon enrollment in the Anthem HSA medical plan, Fidelity will automatically open an HSA on your behalf. You must activate your Fidelity HSA by logging into netbenefits.com/nd. There you will be able to select beneficiaries, review your contributions, select your desired investment strategy, and more.

A Fidelity HSA debit card can be used to pay for known qualified medical expenses at the point of sale (such as pharmacy prescriptions). This debit card will be issued to you via mail when the HSA is initially opened. Additional debit cards for yourself, your spouse, or eligible dependents can also be requested via netbenefits.com/nd by going to the HSA Summary and clicking on the Paying tab. Other options for accessing funds in your HSA include:

  • Fidelity BillPay®
  • Fidelity Checkwriting for your HSA
  • Pay out of pocket and reimburse yourself to another Fidelity account (or other account)

More information about how to access funds from your HSA can be found by visiting Fidelity at fidelity.com/go/hsa/how-to-spend.

Eligible/Ineligible Health Care Expenses

Many common health care expenses are eligible for reimbursement from your HSA, including medical and dental co-payments, deductibles, prescriptions, orthodontia, and vision care. As a general rule, any health care expense you could deduct from your federal income tax is eligible for reimbursement from your HSA. Please see a helpful flyer with Qualified Medical Expenses (and common nonqualified medical expenses) for more information.

Special notes for HSA participants

Since there are so many tax advantages to an HSA, the IRS is strict in ensuring that they are not misused. HSA contributions are not allowed if you have any supplemental medical insurance outside of Notre Dame that does not qualify for an HSA plan. That means that if you have double medical coverage through a spouse or parent (such as a PPO plan), you will not be able to elect the HSA plan. Similarly, if you are participating in Medicare Part A or Tri-care for military veterans, you would not be eligible for contributions to your HSA.

The IRS also does not allow HSA enrollees to have a full flexible spending account (for medical, dependent care is still allowed). In order to still provide an option for HSA participants who want to set aside money for dental and vision care, a Limited Purpose Flexible Spending Account (LPFSA) is offered instead. As the name implies, medical expenses that are covered by health insurance are not eligible for reimbursement when enrolling in this plan. More information on this may be found on the Flexible Spending Account webpage .

Recordkeeper

Fidelity Investments is the provider of recordkeeping services for the HSA. As service provider, Fidelity maintains transactional records and provides education and communication services as well as assisting with compliance and regulatory requirements.

Learn more

For additional information, visit netbenefits.com/nd or call 877-963-0242. You may also schedule a one-on-one consultation with a Fidelity Retirement Planner to discuss how an HSA fits in with your retirement objectives.

For additional questions or information, please contact:

askHR Customer Service Center
200 Grace Hall
Phone: 1-574-631-5900
Fax: 1-574-631-8263
Email:askhr@nd.edu