Health Savings Account
When you enroll in the Consumer Choice Plan, you have access to a Health Savings Account (HSA) through Fidelity. An HSA is a great way to save money to pay for eligible healthcare expenses today and save for eligible expenses in the future, even in retirement. The HSA offers triple-tax savings:
In addition, the Company contributes to your account:
And don’t forget: It’s always your money. Just like a bank account, you own your HSA―so it’s yours to keep even if you leave the Company. Therefore, an HSA can be a critical part of your healthcare strategy and budget now, as well as an important piece of your long-term retirement plan.
Eager to make the most of your HSA? Watch this video to explore the benefits of your HSA.
You Need to Save for Medical Expenses in Retirement
It’s estimated that a couple retiring today at age 65 will need $285,000 to cover their healthcare expenses in retirement.2 Since you are not required to use all the money in your HSA each year, you may want to contribute more than you currently need to help pay for qualified medical expenses down the road.
And if you can afford to do so, you may want to consider paying current healthcare expenses out of pocket, allowing your HSA to grow.
For Example:
If you contributed $3,000 annually to an HSA and earned a 7% return, over a 20-year period, you could potentially grow your balance to $126,471 – that amount assumes $60,000 from your own contributions, plus $66,471 in earnings. You can use this amount to pay for qualified healthcare expenses, free from federal taxes.3
*Note: If you enroll mid-year, the Company contribution to your account will be prorated.
If you’re using your HSA to cover current qualified medical expenses, you’ll want to ensure easy access to your money. Always prepare for the unexpected by saving enough money in cash to cover your anticipated out-of-pocket medical expenses for the year (including those of your spouse and eligible dependents).
If you need help deciding how much to allocate between your cash balance to cover near-term spending and your investable balance, consider the Cash Target Help tool available at Fidelity.com/HSAinvesting.
For more information on the HSA, refer to this brochure.
You Need to Name Your Beneficiary
It’s important to choose a beneficiary to receive your HSA balance if you pass away. You can name or change your beneficiary any time on netbenefits.com
Any amount that you don’t need for current medical expenses may be invested for the future. You can start investing at any time by making a one-time trade or setting up automatic investing for future contributions. And there’s no required minimum to begin investing and no account transaction fees.4
Whether you’d like to be more hands-on or choose from a list of mutual funds, we have strategies that work for you, including:
If you need assistance deciding how to invest your HSA savings, consider the Cash Target Help tool at Fidelity.com/HSAinvesting, a guided, on-line experience designed to help you make confident decisions about how to invest your HSA dollars.
Note: Investing comes with risk. Please consult your financial advisor.
There are multiple ways to use your HSA to pay or get reimbursed for qualified medical expenses, such as:
HSA debit card
Your Fidelity HSA debit card can be used to pay for qualified medical expenses at the point of sale, when your out-of-pocket cost is known (such as prescriptions). Additionally, most healthcare providers will allow you to use your HSA debit card to pay for bills you receive in the mail. You can request an HSA debit card for a spouse or eligible dependents.
Track and Pay
Simplify how you manage your HSA-Eligible Health Plan and Fidelity Health Savings Account (HSA) by handling your expenses, payments, claims, and receipts all in one place, on any device—smartphone, tablet, or computer.
Fidelity BillPay® for Health Savings Accounts
This convenient service enables you to make online payments and keep track of all bill payments. Additionally, you can go paperless by signing up to receive eBills with providers that offer electronic billing. You will receive an email notification when your online bill is available.
To enroll in Fidelity BillPay for Health Savings Accounts, log in to Fidelity.com, click Accounts & Trade, and then BillPay.
1 The amount the Company contributes to a new hire’s HSA depends on your coverage level and the month your coverage begins (generally, the month you are hired).
If you are hired:
Note that if your coverage begins in November or December, you will become eligible to receive the annual Company contribution for the following plan year, provided you stay enrolled in the Consumer Choice Plan coverage for that year.
2 Estimate based on a hypothetical couple retiring in 2019, 65 years old, with life expectancies that align with Society of Actuaries’ RP-2014 Healthy Annuitant rates with Mortality Improvements Scale MP-2016. Actual assets needed may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes: cost basis is assumed to equal market value. Estimate is calculated as the assets required today in a taxable account with an effective tax in retirement of 5%, an asset allocation of 30% equity, 50% bonds, and 20% cash, such that there is a 90% chance of being able to pay for healthcare expenses through life expectancy. The Fidelity Retiree Healthcare Costs Estimate assumes individuals do not have employer-provided retiree healthcare coverage, but do qualify for the federal government’s insurance program, Original Medicare. The calculation takes into account cost-sharing provisions (such as deductibles and coinsurance) associated with Medicare Part A and Part B (inpatient and outpatient medical insurance). It also considers Medicare Part D (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by Original Medicare. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services, and long-term care.
3 This hypothetical example is illustrative and doesn’t represent the performance of any security in a Fidelity HSA. Assumes the investor receives 2% investment growth on funds in the default investment option and that once the balance in this account reaches $2,500, excess funds will earn 7%. Actual net returns will be based on the investor’s investment choices within the Fidelity HSA. This example does not account for the effect of interest, dividends, and taxes. Systematic investing does not ensure a profit and does not protect against loss in a declining market. Consider your current and anticipated investment horizon when making an investment decision, as the illustration may not reflect this. The assumed rate of return used in this example is not guaranteed. Investments that have potential for a 7% annual return also come with risk of loss.
4 While there are no minimum investments in the Fidelity HSA Funds to Consider, some funds available through the brokerage platform do require a minimum amount to invest, but Fidelity does not require a minimum to start investing.
5 In identifying investment options to include in the Fidelity HSA Funds to Consider, Fidelity only considered Fidelity open-end mutual funds and open-end mutual funds offered by a limited universe of third-party fund companies that participate in an exclusive marketing, engagement and analytics program with Fidelity for which they pay Fidelity an annual fee. The only third-party fund companies whose funds were eligible for this program were companies that generally have a track record of generating the strongest customer demand for their products from across Fidelity’s customer channels and have been paying Fidelity a sufficient level of compensation for the shareholder servicing performed by Fidelity.