SimplyHSA Help


SimplyHSA FAQs

Answers to Frequently Asked Questions.

Q

What is an HSA?

A

An HSA, or health savings account, is a unique tax-advantaged account that participants can use to pay for current or future healthcare expenses.

Q

What is a QHDHP?

A

A QHDHP, or qualified high-deductible health plan, is a major-medical health insurance plan that has a minimum deductible amount and maximum out-of-pocket amount that satisfies the criteria established by the IRS under Code Section 223.

Q

How does a QHDHP and HSA work together?

A

In order to make contributions into a SimplyHSA account, the employee must be covered by a QHDHP. Participants can use SimplyHSA funds to pay for eligible healthcare expenses that were incurred after the account was established even for expenses that are incurred after the participant is no longer eligible to make SimplyHSA contributions.

Q

How do participants benefit from tax savings?

A

SimplyHSA provides triple tax savings by reducing Federal, State* and FICA taxes.

Here’s how:

  • Contributions to SimplyHSA can be made with pre-tax dollars, reducing taxable income

  • Any after-tax contributions made to SimplyHSA are tax deductible

  • SimplyHSA funds earn interest tax free

  • When used for eligible healthcare expenses, SimplyHSA distributions are also free from tax

* HSA contributions are taxed in AL, CA, NJ. Employee Benefits Corporation does not provide tax advice. Consult your tax professional for tax-related questions.

Q

What kinds of expenses are eligible using SimplyHSA distributions?

A

Participants, their spouses and dependents can use SimplyHSA to pay for a wide range of eligible medical expenses. An eligible medical expense is defined as an expense that pays for healthcare services, equipment, or medications as described by the IRS. Funds used to pay for eligible medical expenses are always tax-free.

Q

How are eligible expenses paid using SimplyHSA?

A

SimplyHSA funds can be used to reimburse for past medical expenses or new medical expenses if the expense was incurred after your HSA was established. SimplyHSA provides fund distributions by check, online bank transfers through Avidia Bank and by using the included Employee Benefits Corporation Benefits Card to pay for eligible expenses at point-of-sale.

While you do not need to submit any receipts, it is a good idea to save your bills and receipts for tax purposes.


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1350 Deming Way, Ste 300
Middleton, WI 53562-4640

Mail Address
PO Box 44347
Madison, WI 53744-4347