If you will have out-of-pocket health care expenses in 2024, it may benefit you to take advantage of the Health Savings Account (HSA) plan made available to you by Brightpoint if you enroll in the HSA Plan. This savings account can help you plan, budget and save on the cost of what you pay for health care costs.

Health Savings Account

If you enroll in in the HSA plan, you may enroll in a Health Savings Account (HSA). An HSA is a separate, tax-advantaged medical savings account available only if you enroll in what’s considered a qualified high deductible health plan (HDHP). You can open an HSA through most major banks.

An HSA works similarly to a personal checking account; however, the money can only be used to pay for qualified medical expenses. Your HSA can pay for you and your eligible dependents’ medical expenses tax free. An HSA belongs solely to you, which means you keep the account even if you change jobs or retire. And any unused funds rollover from year to year. Other HSA advantages include:

• You can add tax free contributions. You take the deduction when filing your taxes. This helps you save on most state and federal taxes.
• You can use the money in your account to pay for eligible out-of-pocket medical, dental, and vision expenses.
• You can pay COBRA and some Medicare premiums with your HSA.
• You can use the money at any time, as long as it’s for a qualified medical expense.

Who can’t open an HSA?

• You cannot be enrolled in Medicare. (If you had an HSA prior to enrolling in Medicare, you may still use the funds. You just can’t contribute to the account anymore.)
• You cannot be claimed as a dependent on someone else’s taxes.
• You cannot have a regular FSA. (If you do have an FSA, but decide to open an HSA, your FSA will be re-labeled a limited use FSA. Limited use FSAs cannot be used to pay for medical and pharmacy expenses but can be used for qualified dental and vision.)

Using your HSA on qualified expenses

You can use the money in your HSA to pay for qualified medical, dental and vision expenses permitted under
federal tax law. Examples include, but are not limited to:

• Medical Expenses
  • Acupuncture
  • Chiropractic care
  • Fertility treatments
  • Diagnostic services
  • And more
• Dental Expenses
  • Crowns
  • Dentures
  • Orthodontia
  • Teeth cleanings
  • And more
• Vision Expenses
  • Vision exams
  • Contacts
  • Eye glasses
  •  Laser eye surgery
  • And more

Contribution Limits

Each year, the IRS sets an annual limit on deposits to HSAs. The maximum you can deposit into your HSA depends on whether you enroll in individual or family coverage. The limits consider contributions from all sources – amounts you or anyone else deposits. Individuals over the age of 55 may contribute an additional $1,000 every year.

2024 HSA Contribution Limits

Flexible Spending Accounts (FSA) allow you to save money on a pre-tax basis to pay for qualified medical expenses and/or dependent care expenses you may incur throughout the year. The money you put into your FSA is done so on a pre-tax basis. This means you are lowering your taxable income and also not paying taxes when the money is used for qualified expenses.

Health Care FSA – Employees can designate an annual election of pre-tax dollars up to the annual IRS limit ($3,200) in 2024 to cover eligible out-of-pocket healthcare expenses, including copayments, coinsurance, and prescriptions. The annual amount is divided by the number of pay periods in the plan year, and deducted from each paycheck before taxes are calculated. The funds are available on a pre-paid debit card to use throughout the year.

Brightpoint will rollover a portion of unused medical FSA funds following the conclusion of the run out period on March 31st, 2024. For employees enrolling in the HSA for the first time, any 2023 FSA rollover dollars remaining following the runout period through March 31st 2024 will be converted into a Limited Purpose FSA. Run out period runs from January 1, 2024—March 31st, 2024, during this period you will be allowed to submit for reimbursement any claims incurred during the 2023 plan year against your remaining FSA balance.

Most debit card transactions for medical, dental, and vision services are automated to provide more ease with FSA substantiation. Each debit card swipe will be automatically validated by the carriers and BRi to eliminate work on your end. There still may be instances where substantiation will be required and you will need to submit proof of claim to BRi (Benefit Resource, Inc.).

Limited Purpose FSA – For those employees enrolled in the HSA plan and eligible to receive an employer contribution into their Health Savings Account, any FSA contributions will be limited to qualified non medical expenses only. The IRS does not allow medical FSA and HSA contribution dollars in the same plan year.

Dependent Care FSA – Similar to the Healthcare FSA plan, employees can designate an annual election of pre-tax dollars up to the IRS limit ($5,000 in 2024) to be used to cover eligible dependent care expenses. Funds are available after each payroll deduction.

Transit and Parking FSA – Certain transit and parking expenses can be covered by two separate FSA plans. Eligible mass transit FSA expenses include costs for any fare card, pass, voucher, or ticket to cover commuting costs. Qualified parking expenses include parking near work, or a location where an employee commutes to work. The maximum amounts allowed in 2024 are $315/month for parking and $315/month for mass transit.

FSAs do have a use-it-or-lose-it provision, so be conservative when electing how much to contribute.