Health Savings Account (HSA)
Plan benefits
Due to IRS regulations, the HSA is only available to individuals enrolled in the Value PPO. Covers health care expenses incurred by you or your eligible tax dependents not paid by insurance. Complete listing in IRS publication 502 found on the IRS website. For more information, view the HSA Quick Reference Guide. Interested in investing your Health Savings Account dollars? For more information, read this guide.
High Deductible Health Plan (HDHP) is the same as the Value PPO.
Contribution summary
Northwestern will match your pre-tax contribution to your HSA up to:
- $1,000 - if you elect You Only coverage, or
- $2,000 - if you elect You + Spouse, You + Child(ren) or You + Family coverage
If you and Northwestern contribute the maximum allowed, the total contributions to your HSA for the year will equal the annual maximum contribution allowed under federal regulations.
For 2024 - Under age 55
| Health Coverage | Status | You Contribute | Northwestern Contributes | Total Funded |
|---|---|---|---|---|
| Single | Northwestern HSA Account | Up to $3,150 | + up to $1,000 | $4,150 |
| Family* | Northwestern HSA Account | Up to $6,300 | + up to $2,000 | $8,300 |
For 2024 - Age 55 and older
| Health Coverage | Status | You Contribute | Northwestern Contributes | Total Funded |
|---|---|---|---|---|
| Single | Northwestern HSA Account | Up to $4,150 | + up to $1,000 | $5,150 |
| Family* | Northwestern HSA Account | Up to $7,300 | + up to $2,000 | $9,300 |
*Family coverage includes: you + spouse, you + child(ren) and you + spouse + child(ren).
**For individuals age 55 and older by December 31, 2024, additional “catch-up” contributions of $1,000 for 2024 are allowed and may be made via payroll deductions.
For 2025 - Under age 55
| Health Coverage | Status | You Contribute | Northwestern Contributes | Total Funded |
|---|---|---|---|---|
| Single | Northwestern HSA Account | Up to $3,300 | + up to $1,000 | $4,300 |
| Family* | Northwestern HSA Account | Up to $6,550 | + up to $2,000 | $8,550 |
For 2025 - Age 55 and older
| Health Coverage | Status | You Contribute | Northwestern Contributes | Total Funded |
|---|---|---|---|---|
| Single | Northwestern HSA Account | Up to $4,300 | + up to $1,000 | $5,300 |
| Family* | Northwestern HSA Account | Up to $7,550 | + up to $2,000 | $9,550 |
*Family coverage includes: you + spouse, you + child(ren) and you + spouse + child(ren).
**For individuals age 55 and older by December 31, 2025, additional “catch-up” contributions of $1,000 for 2025 are allowed and may be made via payroll deductions.
Invest Your HSA Funds
You have the opportunity to grow your HSA balance by investing in a variety of mutual funds. For more information call Inspira Financial (formerly PayFlex)at 844-729-3539.
The benefits of investing
Once you have a minimum balance in your HSA (typically $1,000), you can open an investment account and start investing your HSA dollars. With an investment account, you can take advantage of the following benefits:
- Access to a diversified group of mutual funds, each professionally managed by an investment adviser
- Integration with Morningstar® research data
- 401(k)-like investment capabilities with no transaction fees for trading
- The ability to move money from your investment account back to your HSA if you need those funds for health care
You can choose from a variety of mutual funds. And from the Inspira Financial (formerly PayFlex) member website, you can:
- Transfer funds to and from your HSA.
- Create recurring transfers to automatically take place each week, month or quarter.
- View your investment account information, like investment balances, elections and recent transactions.
- Manage your investment account by exchanging your investments with other investments. Or rebalancing your current investments to a certain percentage.
Enrollment
Please note, if you enroll in Medicare, you become ineligible to enroll in or contribute to a Health Savings Account (HSA), more information here. Employees and their dependents who are eligible for Northwestern benefits and are eligible for Medicare may defer enrollment until their Northwestern health coverage ends. More information can be found here.
Newly eligible
- Newly eligible employees may enroll online through myHR within 31 days of hire.
- Inspira Financial (formerly PayFlex) will mail or email a Welcome Kit after enrollment.
- Complete the requested information including the signature card and return it to Inspira Financial (formerly PayFlex). You can also use Inspira Financial to activate your account online. One on the website, navigate to "Create your profile."
- Inspira Financial will mail you your debit card.
Changing your contribution
An individual may adjust their HSA contributions at any time online via myHR.
Open enrollment
- An individual must re-enroll through myHR to continue making contributions to the HSA the following year.
- If you do not re-enroll in the plan the following year, you may also be responsible for a monthly administrative fee assessed by Inspira Financial.
File a claim
- Use your HSA debit card, make a withdrawal online if you have created a linked bank account, or make payment to yourself, which would be a check payment.
- Funds must be available in your account before using your debit card. You will be responsible for any overdraft fees.
- Your HSA debit card may NOT be used at an ATM to withdraw cash or to pay for non-health expenses.
Tax implications
- The University reports each employee receiving a contribution for the calendar year as non-taxable wages on the W-2 (box 12, code W).
- There is no need to complete IRS Form 8889 or to report contributions on page 1 of IRS Form 1040.
- Form 8889 would be required for contributions to an HSA that are not deposited pre-tax through payroll (i.e. cash deposits).
- If you pass away, your HSA may be transferred to your surviving spouse tax-free, else distributions are taxable.
Separation from the University
- Your HSA is portable and you may continue to use its funds when you leave the University.
- You may not continue to make contributions to your HSA through Northwestern.
- Monthly administrative fees covered may be charged, by Inspira Financial, directly to your account.