If you enroll in Bedford City School District’s $4,000 Deductible Medical Plan, you have the option to contribute to a Health Savings Account, or HSA. This article contains many frequently asked questions about Health Savings Accounts.
Q: Can I sign up for a Health Savings Account?
A: If you enroll in Bedford City School District’s $4,000 Deductible Medical Plan, you have the option to contribute to a Health Savings Account, or HSA. If you are enrolled in the $300 or $600 Deductible (PPO) plans, you are not eligible for a Health Savings Account.
Q: How much can I contribute to my Health Savings Account?
A: The IRS limits how much can be contributed to an HSA each year. For 2025, the limits are $4,300 per individual or $8,550 per family. Individuals aged 55 (and not eligible for Medicare) or over are allowed an additional $1,000 per year, called a "catch-up" contribution.
Q: When can I use the money in my Health Savings Account?
A: If you elect a Health Savings Account, your total annual contribution will be deducted from your paycheck in equal amounts throughout the calendar year. You can use the money in your Health Savings Account as soon as it is deposited (after each payroll deduction).
Q: How do I use the money in my 2025 Health Savings Account?
A: Bedford City School District's 2025 Health Savings Account partner is BBP Admin. Log into BBP Admin's Wealthcare web portal to access your account. If you prefer, you may also contact BBP Admin by phone at (630) 775-8310.
Q: Where do I find my 2024 Health Savings Account?
A: Your 2024 Health Savings Account does not expire; any remaining balance will remain in your Inspira account. Visit inspirafinancial.com or call 844.729.3539 for more information or assistance.
Q: What can I pay for with my Health Savings Account dollars?
A: The IRS determines how you can spend your Health Savings Account dollars. Examples of qualified expenses include over-the-counter medications and healthcare items, hearing aids, co-payments for prescriptions, eyeglasses, orthodontics, and amounts you owe toward your deductible. For a complete list of eligible Health Savings Account expenses, please refer to IRS Publication 502.
Q: I've used a Flexible Spending Account in the past. Is a Health Savings Account the same thing?
A: No. Although a Flexible Spending Account (FSA) and Health Savings Account (HSA) both let you save pre-tax dollars for healthcare expenses, there are some important differences. One of the most important differences is that FSAs have a use it or lose it policy, meaning you risk losing your contributions if you don't use the money before the end of the year. Health Savings Accounts, on the other hand, allow you to keep your unused dollars indefinitely, even if you change jobs.
Q: Can I sign up for a Health Savings Account AND a Flexible Spending Account?
A: If you enroll in a Health Savings Account, the IRS permits you to also enroll in a special type of Flexible Spending Account, called a Limited Purpose FSA. A Limited Purpose FSA can be used to pay for dental and vision expenses that aren't covered by insurance.
Q: I am healthy and don't have many medical expenses. Do I need a Health Savings Account?
A: Health Savings Accounts are often used as a way to save for retirement. Even if you change jobs, the Health Savings Account remains yours, so you don't have to spend it immediately. Even though you may not have medical expenses now, it is likely that you or your family will have them in the future. A Health Savings Account lets you put money aside for healthcare costs now and in the future.