Health Savings Account
When you enroll in the BCBS HSA Medical Plan, you may be eligible to open a Health Savings Account (HSA) through Optum Bank. An HSA is a personal savings account you can use to pay for qualified out-of-pocket medical expenses with pre-tax dollars—now or in the future.
Both Neighborly and you can contribute money to your HSA, up to the IRS limit.
How the HSA Works
The BCBS HSA Medical Plan and your Health Savings Account work together to help you save for current and future health care expenses.
Eligibility
You must be enrolled in the high-deductible HSA Health Plan to open an HSA. There are a few other rules, too:
- You can’t be covered by another health care plan, such as your spouse’s medical plan or a general-purpose health care Flexible Spending Account, or Medicare parts A, B, or D.
- You can’t have received VA benefits within the past three months or be enrolled in Tricare
- You can’t be claimed as a dependent on someone else’s federal tax return
If you do not meet these requirements, you can still enroll in the HDHP plan, but you will need to opt out of the HSA.
The HSA’s Tax Advantages
Opening an HSA has three tax advantages:
- You don’t pay income tax on the money you contribute, or contributions from Neighborly
- You don’t pay taxes on the interest or investment earnings in your account.
- You don’t pay taxes when you use the money to pay for qualified healthcare services.
Contributing to Your HSA
If you’re enrolled in the BCBS HSA Medical Plan, Neighborly contributes to your HSA based on your coverage level:
- Associate Only: $1,000/year ($38.46 biweekly)
- Family: $2,000/year ($76.92 biweekly)
Contributions are prorated based on your enrollment date and made each pay period.
You can also contribute pre-tax dollars up to the IRS annual limit (including Neighborly’s contribution):
- Associate Only: $4,300 ($4,400 in 2026)
- Family: $8,550 ($8,750 in 2026)
If you’re age 55 or older, you’re eligible for an additional $1,000 catch-up contribution.
Using Your HSA
Once you’re enrolled, you’ll receive a debit card from Optum to help manage your HSA reimbursements. You can use that card to pay for eligible medical, dental, vision, and prescription drug expenses incurred by you and your eligible family members — even if they are not covered by the HDHP medical plan.
For a full list of eligible expenses, refer to IRS Publication 502.
Any money left in your account at the end of the year rolls over, so you can use it next year or in the future. If you leave Neighborly or retire, your HSA goes with you, allowing you to continue paying for or saving for future eligible health care expenses.