What You Need To Know

A Health Savings Account (HSA) is a savings and spending account that lets you save pre-tax dollars to pay for health care expenses. It’s available to those who enroll in a high-deductible health plan.

What Makes an HSA So Great?

For starters, you can use the money in your account to pay for eligible health care expenses now or save the money for future expenses, even when you retire. Check out more benefits of having an HSA!

Contributions
  • Company: Republic Services helps you save by contributing — $400 per year if it's just you, or $800 a year if you're covering dependents.
  • You: You can contribute up to $4,400 per year if it's just you, or $8,750 per year if you're covering dependents. If you are age 55 or older, you can contribute an additional $1,000 in catch-up contributions.
Timing of Contributions
  • Company: The contribution is spread out evenly throughout the year and deposited at the start of each quarter. If you join Republic Services mid-year, you'll receive the quarterly contribution the next time it is made.
  • You: You can start and stop your contributions at any time.
Potential Investment EarningOnce your HSA receives $1,000, you can choose to invest some of the money for potential long-term growth and use it for future expenses or when you retire.
Triple Tax Advantage
  • When you contribute to an HSA, you pay less in taxes from your paycheck.
  • You don't pay any taxes on HSA investment earnings.
  • You don't pay taxes on HSA money when you use it to pay eligible health care expenses.
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Eligible Expenses

The IRS decides what expenses can be reimbursed. Here are some examples of qualified expenses you can use your HSA money for:

  • Dental treatment
  • Diagnostic tests and devices
  • Doctor visits
  • Prescriptions
  • Eyeglasses, contact lenses, and exams
  • Hearing aids and batteries
  • Smoking cessation

You can also use your HSA for personal protection equipment (PPE) like face masks, hand sanitizer, and sanitizing wipes.

Get a detailed list of eligible expenses on the Benefits Service Center website or through Publication 502 on the IRS website.

Paying for Eligible Expenses 

When you enroll, you’ll receive a debit card to pay your doctors, pharmacies and other providers directly from your HSA.

Although you don’t need to submit receipts when you’re reimbursing yourself with your HSA dollars, you should save your receipts for tax purposes.

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The Rules

To be eligible to contribute to an HSA:

  • You must be enrolled in a high-deductible health plan (HDHP), like Plan Three.
  • You cannot have coverage through a non-HDHP plan (like Plan One or Two) or Medicare, TRICARE, TRICARE For Life, or your spouse’s employer plan.
  • You cannot have received Veterans Administration or Indian Health Services benefits in the past three months (except dental, vision and preventive services are okay).
  • If you’re enrolled in an HDHP, you cannot have both an HSA and a Health Care FSA. While still taking full advantage of your HSA, your Health Care FSA will automatically convert to a Limited-Purpose FSA to pay for eligible dental and vision expenses.
  • You must enroll in the HSA each year if you want to participate.
  • You cannot be claimed as a dependent on anyone else’s tax return.

What’s a Limited-Purpose Flexible Spending Account (FSA)?

If you enroll in an HDHP and the Health Care FSA, the Health Care FSA will automatically convert to a Limited-Purpose FSA (LPFSA), which can only be used to pay for eligible out-of-pocket dental and vision costs — like cleanings, braces, glasses and contacts. It’s a great way to save money on dental and vision costs while keeping your HSA for medical care expenses. Keep in mind: An FSA is a use-it-or-lose-it account. You can carry over a portion of your unused balance into the next year, based on approved IRS limits, but any excess balance left in your account after the deadline will be lost if it is not used.

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How To Get Started

You can enroll in an HDHP and an HSA and elect your pre-tax contributions during your new hire or Open Enrollment period.

If you enroll in an HDHP and an HSA but do not elect your contributions during your new hire or Open Enrollment period, you can do so at any time by visiting the Benefits Service Center website and selecting Change My Benefits > Life Events > Update HSA Election.

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