Account mentors

Our endearing term for our member services team, who are available every hour of every day to assist you.

Administrator

This term can be applied to many types of organizations. For the purpose of this guide, ‘administrator’ refers to the company who holds, or administers, your HSA.

Beneficiary

The individual(s) designated to inherit your HSA in the event of your death.

Claim

The information about a specific medical service submitted by your provider to your insurance company for processing. You can enter new claim records and access existing claim records in the member portal for payment and documentation purposes.

Coinsurance

Amount you pay (as a percentage of cost) after you meet your health plan deductible, but before you meet the out-of-pocket maximum (i.e. 10 percent, 20 percent, etc.).

Contribution

The technical term used to refer to deposits (other than transfers and rollovers) to your HSA. These apply to your contribution limit.

Contribution Limits

The maximum amounts established by the IRS that you can contribute to your HSA. View specific limits for the current and next year.

Copay

The fixed dollar amount you pay for specified services and prescriptions under most traditional health plans. HSA-qualified plans do not typically require copays.

Coverage tier

The level of coverage you have (single or family). HSA contribution limits vary by coverage tier.

Deductible

The amount you must pay before your health plan begins paying toward your costs.

Dependent

1. An individual, other than yourself, who is covered by your insurance plan; typically a spouse or child.
2. The IRS has specific requirements to determine tax dependents. Your HSA can be used to pay for the qualified medical expenses of any tax dependent, regardless of whether they are covered by your plan. Consult a tax advisor regarding your specific situation.

Distribution

The technical term used to refer to withdrawals from your HSA.

Electronic funds transfer (EFT)

A quick method of transferring funds directly between your personal financial institution and your HSA. You can set up an EFT for contributions or reimbursements in the member portal.

Eligible individual

An individual who meets all of the IRS requirements to contribute to an HSA. You can read more about eligible individuals in IRS Publication 969.

Employee contributions

Employees can contribute to their HSA through payroll deduction or by direct transfer from a checking or savings account. These contributions are excluded from the employee's federal taxable income.

Employer contributions

Employers may make tax-deductible contributions to an employee’s HSA, but these contributions must be included in the employee’s taxable income for federal and state tax purposes. If employer contributions exceed the employee's qualified medical expenses, the excess amount will be included in the employee's federal and state taxable income.

Explanation of benefits (EOB)

A statement from your insurance that shows the service billed from your provider, the deductible, coinsurance and other covered amounts, as applicable. Compare this to the invoice from your provider to ensure accuracy.

HSA rollover

An HSA rollover is when funds are transferred from one HSA account to another. This type of transaction does not count towards the annual contribution limit and can be done twice per calendar year. The funds must be rolled over within 60 days, or they will be subject to taxes and a 20% penalty.

In-network

A provider that participates in your health plan’s network, and agrees to charge negotiated rates established with your health plan.

Insurance ID card

The card provided by your health plan that is used to verify coverage and process billing of your claim. It is important that you present this card each time you use healthcare services.

Insurance premium

The amount you pay (usually per pay period) to have health insurance. HSA-qualified plans typically have lower premiums than traditional health plans.

Out-of-network

A provider who does not participate in your health plan network and has no agreement with your health plan. You can still use your HSA to pay for qualified medical expenses from out-of-network providers.

Out-of-pocket maximum

For HSA-qualified plans: The maximum amount you will pay out-of-pocket, including prescriptions. Your deductible is included in this calculation.
For other plans: The concept is similar, but copays, coinsurance and other costs may not be included in the calculation of your out-of-pocket maximum. Contact your health plan for more details about your specific coverage.

Point of sale (POS)

The terminal where your make payment with your HSA debit card.

Premiums

Premiums are the monthly payments that must be made to an insurance carrier in order to maintain health coverage. Premiums may not be paid with funds within an HSA, however, they may be used to pay for qualified medical expenses.

Provider

The doctor or other healthcare professional who provides healthcare services.

Provider invoice (provider statement)

The bill from your provider for services. It should reflect the adjustments presented on the EOB from your health plan.

Qualified medical expenses

Expenses that can be paid tax-free¹ using your HSA. For an overview of the expenses, view our qualified medical expenses section.

Reimbursement

Money you withdraw from your HSA to pay yourself back for out-of-pocket medical expenses. There is no deadline to reimburse yourself for qualified medical expenses from your HSA.

Trustee

An HSA trustee is a financial institution that is responsible for managing and administering the funds in an HSA account, like HealthEquity. The HSA trustee holds the funds, processes contributions and withdrawals, issues debit cards (if applicable), provides customer service, and ensures that the transactions are in compliance with IRS regulations.