Health Savings Account

Employees that enroll in the Blue Cross Blue Shield of Kansas City HSA Plan are eligible to setup an HSA. An HSA is a tax-exempt account, owned by you, established for the purpose of paying for the qualified medical expenses of an individual and/or his or her spouse and dependents. HSAs are designed to provide eligible individuals with triple federal tax benefits: (1) HSA contributions are tax-free, (2) interest and other earnings on HSA contributions accumulate tax-free, (3) amounts distributed from an HSA for qualified medical expenses are tax-free as well, (4) and this money can roll over from year to year.

Employees over the age of 55 may contribute an additional $1,000 as long as they are not enrolled in Medicare.