Health Savings Account (HSA)

If you enroll in the 1850 or 2850 Deductible Plan, you get access to a tax-favored savings account called a Health Savings Account (HSA) that you can use for health care. You set aside money – tax-free.

HSA features

The money in your HSA can be used to pay for medical, dental or vision care – such as office visits, lab work, X-rays and prescriptions – now or in the future. Money in an HSA goes in tax-free, grows tax-free and can be withdrawn tax-free as long as the funds are used for qualified health care expenses.

Action required!

When you elect the 1850 or 2850 Deductible Plan through the Mercer Marketplace Enrollment System, you will be automatically presented with the Health Savings Account enrollment page where you can choose your contribution amount for plan year and request that Western Union open an account for you, if you don’t currently have an HSA account. You must have an active HSA account to receive the Western Union HSA annual contributions to your account ($500 Single/$1,000 Family, prorated for new hires).

Eligibility for an HSA

Because HSA plans have certain tax advantages, the IRS defines specific rules for participants. You are not eligible for an HSA if you:

  • Are enrolled in Medicare.
  • Are covered by another health care plan that’s not a qualified high deductible health plan.
  • Can be claimed as a dependent on someone else’s tax return.
  • Are covered by veterans’ benefits and have used Veterans Affairs medical services within the past three months.*
  • Are enrolled in or covered by a general purpose Health Care Flexible Spending Account (FSA) or Health Reimbursement Account (HRA), including one through your spouse’s/domestic partner’s employer.

*Veterans who have a service-connected disability can participate in an HSA regardless of when they received VA benefits.

HSA annual maximum contributions

You can also elect to contribute additional pretax money to your account up to the plan maximum. The maximum dictated by the IRS includes both your contributions and the Western Union HSA contributions. The IRS has set the following limits for 2021:

  • $3,600 for Single coverage.
  • $7,200 for Family coverage.

If you are 55 years old or older, you are eligible to elect an additional $1,000 as a “catch-up” contribution.

Eligible Expenses

You can use the money in your Health Care FSA to cover eligible medical, dental, vision and prescription drug expenses incurred by you and your eligible family members. If you want to enroll in a Health Care FSA, you are eligible to enroll in a Limited Purpose FSA. Please note: Funds available for reimbursement are limited to the balance in your HSA.

Grow your HSA for the future

Your HSA is like any other savings account. It’s yours to keep, including the interest and investment earnings, even if you change plans, retire or leave Western Union. Managing it wisely means you’ll have more to use for medical expenses in the future.

Six reasons to consider an HSA

1. You can use it or keep it
Any money you don’t use by the end of the plan year rolls over and earns interest.
2. You enjoy triple tax advantages
1) Tax-free contributions, lowering your taxable income and helping you save money. 2) Tax-free growth as your balance grows (either with interest or investments). 3) No tax penalty for withdrawing funds for use on qualified health expenses at any time.
3. You can take it with you
If you leave Western Union, you take your HSA funds with you. You can even use your HSA funds to help pay for COBRA, if needed.
4. You’re in control
You decide how much to spend or save and when to use (or not use) your money.
5. It stays with you for the long haul
If you’re able to save your HSA funds over time, you can use them for qualified expenses during retirement.
6. It has real growth potential
You can invest your balance to earn even more.