Health savings accounts (HSAs)For small businesses
Health savings accounts (HSAs) are employee-owned personal savings accounts, which can be funded by an employer, an employee, or both. They can only be offered in conjunction with a federally qualified high-deductible health plan (QHDHP).
Employees contribute to HSAs through payroll deduction, check, or online transfer. Contributions are tax-deductible, and distributions are tax-free when used to pay for qualified medical expenses. Interest and earnings are also tax-free.1
With an HSA, the employee owns the account — so if he or she changes jobs, the account goes with that employee. Employees can invest a portion of their HSA funds which can help them to work toward their long-term investing goals.2
The BlueSaver℠ HSA Solution
Our BlueSaver HSA Solution is closely integrated with our medical products and services to ensure a seamless experience for your employees — to help them take full advantage of their health plan benefits.
The BlueSaver HSA Solution offers employees all the advantages of an HSA, along with claim and payment integration to make account management easy. This integration creates a one-of-a-kind experience for our members, while also assisting them in becoming more informed health care consumers.
WealthCare Saver (WCS) investment solution now available
Subscribers enrolled in an Independence Blue Cross (IBX) QHDHP with an HSA may take advantage of the WCS investment solution. This new solution offers a next-generation HSA investment solution that includes real-time and fractional trading, a fully-automated robo advisor, and a full range of investing models for every investor experience level.2 Best of all, the solution is fully integrated and accessible from the account holder’s HSA when they log in at ibx.com or the IBX mobile app.
Investment options include:
- Managed. A portfolio option based on risk profile.
- Self-directed. A curated list of low expense ratio exchange-traded funds (ETFs).
- Brokerage. A flexible investing option with over 500 ETFs and 100s of individual stocks, including fractional trading.
High-yield interest option available to account holders with HSAs
Members enrolled in a QHDHP can choose between two interest options for their cash deposits: traditional or high-yield.3
- Traditional. Account holders earn standard interest rates on their cash balance. Cash deposits are FDIC-insured up to $250,000 and receive a lower interest rate.
- High-yield. Account holders earn a higher interest rate on their cash balance. The high-yield cash account funds are not FDIC-insured and are held in a deposit account backed by Pacific Life, a highly rated California insurance company.
Learn more
Refer to IRS Publication 969 for more information about HSAs. Refer to IRS Publication 502: Medical and Dental Expenses for a complete list of qualified expenses.
Contact us
For more information about the BlueSaver HSA Solution, contact your IBX account executive, independent broker, or consultant, or call 215-241-2263.
Independence Blue Cross does not provide legal or tax advice. Consult your legal and/or tax advisor for rules regarding the tax advantages of spending accounts.
1 Tax savings are at the federal level. State tax laws vary.
2 An optional investment account may be opened once the HSA balance reaches $500; additional fees apply. The balance in the HSA Investment Account is subject to investment risks, including fluctuations in value and the possible loss of the principal amount invested. Investing through the WealthCare Saver investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement(s).
3 This choice only impacts the HSA cash balance and does NOT impact the investment account — if the account holder has opted to open one.