Health Savings Account (HSA)
Administered by: HealthEquity
Available only to employees who enroll in the Blue Shield $aver/HSA plan or Blue Shield Super $aver/HSA plan.
Mercury offers you the following accounts and encourages you to take full advantage of their money-saving potential. You can enroll in them on the UKG website as a new hire, during Open Enrollment, or if you have a qualifying life event. Note: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already participate.
Administered by: HealthEquity
Available only to employees who enroll in the Blue Shield $aver/HSA plan or Blue Shield Super $aver/HSA plan.
Administered by: PayFlex
Available to employees who enroll in the Kaiser Permanente Deductible HMO1, Blue Shield HMO1, Blue Shield HMO Trio1, Blue Shield EPO2 or do not elect medical coverage through Mercury.
1 Available in California only
2 Available outside California only
* Contributions are not subject to federal tax. Exceptions include California and New Jersey, where you’ll pay state tax on HSA contributions, and New Hampshire and Tennessee where state taxes apply to tax dividend and interest earnings after a certain dollar amount. In New Jersey, FSA contributions are also subject to state tax. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA or FSA.
Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.
Without an HSA or FSA, Tom would pay … | Savings |
---|---|
24% in federal income tax | $480 |
5% in state income tax* | $100 |
7.65% in payroll tax | $153 |
His total tax savings for the year with an HSA or FSA | $733 |
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.
* Contributions are not subject to federal tax. Exceptions include California and New Jersey, where you’ll pay state tax on HSA contributions, and New Hampshire and Tennessee where state taxes apply to tax dividend and interest earnings after a certain dollar amount. In New Jersey, FSA contributions are also subject to state tax. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA or FSA.
With the Blue Shield $aver/HSA plan and Blue Shield Super $aver/HSA plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.
The HSA has a triple-tax advantage that beats even a 401(k) or Roth IRA. And, Mercury will contribute to your account, too!
Keep in mind, the maximum amount you and Mercury can contribute to your HSA is determined by annual limits that the IRS sets.
Contribution limits | Team member only coverage | Team member + 1 coverage | Family coverage |
---|---|---|---|
Company Contribution | $600 | $950 | $1,200 |
Your Annual Maximum Contribution* | $3,550 | $7,350 | $7,100 |
Total allowed by the IRS in 2024** | $4,150 | $8,300 | $8,300 |
* If you are age 55 or older, you can contribute an extra $1,000 to your HSA.
** This includes Mercury's contribution and your own contributions.
In order to establish and contribute to an HSA, you:
You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.
To contribute to an HSA, you must be enrolled in the Blue Shield $aver/HSA plan or Blue Shield Super $aver/HSA plan. If you’re enrolled and haven’t opened your HSA yet, visit HealthEquity to open your account. If you’re not enrolled in the Blue Shield $aver/HSA plan or Blue Shield Super $aver/HSA plan, you may enroll during the next Open Enrollment period.
As you start using your account, keep in mind that you can only spend money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.
Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for health care and dependent care. Our FSAs are administered by PayFlex.
With FSA money, you “use it or lose it.” If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on PayFlex.
A Health Care FSA is available to employees who enroll in the Kaiser Permanente Deductible HMO1, Blue Shield HMO1, Blue Shield HMO Trio1, or Blue Shield EPO2 or who don’t elect medical coverage. You can contribute up to $3,200 for the year through pre-tax payroll deductions to help cover eligible medical, dental, and vision expenses.
1 Available in California only
2 Available outside California only
HSA | Health Care FSA | |
---|---|---|
Available with … |
Blue Shield $aver/HSA plan
Blue Shield Super $aver/HSA plan
|
Kaiser Permanente Deductible HMO1
Blue Shield HMO1
Blue Shield HMO Trio1
Blue Shield EPO2
(Also available if you waive medical coverage)
|
Receive company contribution | Yes | No |
Change your contribution amount anytime | Yes | No |
Access your entire annual contribution amount as needed | No | Yes |
Access only funds that have been deposited | Yes | No |
Use account money for | All eligible health care expenses | All eligible health care expenses |
“Use it or lose it” at year-end | No | Yes |
Money is always yours to keep | Yes | No |
1 Available in California only
2 Available outside California only
Visit your tax-advantaged account websites to manage your HSA or FSA accounts online, use calculators, and more.