Save money with an HSA
If you have an "HSA-eligible" plan, you can start a health savings account (HSA). You can contribute money to your account and spend it now on qualified medical expenses. Or you can keep saving and investing your money and use it later in life.
Frequently asked questions
An HSA is a tax-advantaged personal savings account that can be used to pay for medical, dental, vision, and other qualified medical expenses. To contribute to an HSA, you must be enrolled in a qualified high deductible health plan (HDHP). Your contributions are subject to annual IRS limits.
In order to contribute, you must be enrolled in a qualified high deductible health plan (HDHP), cannot be covered under a secondary health insurance plan or be enrolled in Medicare, and you cannot be another person’s dependent. There are no eligibility requirements to spend previously contributed HSA funds.
A qualified high deductible health plan (HDHP) is a health insurance plan with lower monthly premiums but higher deductibles, designed to cover major medical expenses while allowing eligibility for a health savings account (HSA).
When you contribute to your HSA, you get a triple tax advantage:
- The money you put into your HSA may reduce your taxable income.
- Interest earned on your HSA funds is tax-free.
- The money you take from your HSA for qualified medical expenses isn’t taxed.
Tax savings example*
For a married couple in Rhode Island filing a joint tax return.
| Household Income: | $100,000 |
| Pre-tax HSA Contribution: | $5,000 |
| Tax savings: | $825 |
*This example is for illustrative purposes only and does not represent actual tax impact.
You can use the calculator that is available in your online HSA account, which you can access through BlueCare Connect.
In 2026, annual contributions from all sources may not exceed $4,400 for individuals or $8,750 for families. Individuals aged 55 and over may make an additional $1,000 catch-up contribution.
The IRS determines the list of qualified expenses and may modify that list at any time. Here are some common and popular items.
- Copays and coinsurance
- Prescription medicines
- Eyeglasses, contact lenses, eye exam
- Dental treatment
- Ambulance
- Chiropractor
- Menstrual care products
- Pregnancy test
Please see IRS Publication 502 for a more detailed listing of qualified medical expenses.
You can set up an HSA through your BlueCare Connect account. Choose the Coverage & Benefits menu option and select Benefit Programs. Select the HSA card and the "Click to access" button. Follow the prompts to complete your registration.
You can transfer money from your bank online or deposit a check. Learn more by visiting your HSA account through BlueCare Connect. Just look for “health saving account” in the Coverage & Benefits menu.
When you have a medical expense, first verify your deductible and the amount that you owe. Then you can pay with your HSA debit card whether it is at your doctor’s office, a pharmacy, or over the phone. You also can pay online. Learn more by visiting your HSA account through BlueCare Connect. Just look for “Benefit Programs” in the Coverage & Benefits menu.
No. The money is yours to keep, and there is no deadline to use the funds.
You can learn more through the tutorials and details in your online HSA account, which you can access through BlueCare Connect. Just look for “health saving account” in the Coverage & Benefits menu.
This summary is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. HSAs are not insurance. HSAs are individual accounts, and are subject to eligibility and restrictions, including but not limited to, restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code.
