University of Wisconsin–Madison

Health Savings Account

A Health Savings Account (HSA) is an individually-owned, tax-advantaged savings account. You may use HSA funds to pay for medical, dental, prescription, and vision expenses. If you enroll in the State’s High Deductible Health Plan (HDHP), HSA enrollment is required. You must re-enroll in the HSA annually if you continue to participate in the State’s HDHP.

If you do not use all of your HSA funds, the funds carry over year-to-year without forfeiture. The money is yours, even if you leave the HDHP or state service.

See the Department of Employee Trust Funds (ETF) HSA Program Page for more details.

Eligibility

You must be enrolled in the HDHP through the State to be eligible.

You are not eligible if:

  • You are a Graduate Assistant or Short-Term Academic Staff
  • You are enrolled in Medicare Part A or Part B
  • You are covered under another health plan that is not a qualified HDHP
  • You are covered by TRICARE, or have accessed your Veterans Administration (VA) benefits in the past 90 days. Exceptions may apply.
  • You or your spouse have a Health Care Flexible Spending Account (FSA)
  • You can be claimed as a dependent on someone else’s tax return (other than your spouse)

Enrollment

If you are a newly hired employee:

  • You have 30 days from the date employment begins to enroll
  • Coverage will be effective on the first of the month on or following your hire date

If you are a currently enrolled employee:

  • You may change/start/stop your HSA contribution at any time.
  • You are required to re-enroll each year to continue participation. Enrollments do not carry forward from year to year

If you have any questions regarding your eligibility or enrollment options, contact HR.

Contribution Limits

The IRS updates HSA contribution limits annually. The annual contribution limits include contributions from all sources, including the UW employer HSA contribution. You are responsible for making sure your HSA contributions (from all sources) are within the annual IRS limits.

Coverage Level Annual HSA Contribution Limit (2021) Annual HSA Contribution Limit for age 55+ (2021)
Single $3,600 $4,600
Family $7,200 $8,200

Employer Contribution Amounts

UW will contribute a prorated total of the following amounts equally over each paycheck to your HSA depending on your HDHP coverage level.

Coverage Level Annual Employer HSA Contribution Limit
Single $750 ($62.50 per month)
Family $1,500 ($125.00 per month)

Employees who are required to pay half of the total health insurance premium will receive half of the UW contribution.
Crafts Workers do not qualify for the HSA employer contributions.

Mid-Year Enrollments

The maximum contribution limits and UW contribution amounts above are based on an assumption of HDHP and HSA enrollments for the entire calendar year. If your enrollments are not effective on January 1, the amounts above will be prorated.

Limited Purpose FSA (LPFSA)

A Limited Purpose FSA (LPFSA) covers eligible dental and vision expenses. You may also use LPFSA dollars for medical expenses once your HDHP medical deductible is met. These expenses can be incurred by you, your spouse, and/or a qualifying child or relative. This plan is only available if you are enrolled in a HDHP plan design. See IRS publication 969 for more detail on whose expenses may qualify.

The annual contribution limit for 2021 is $2,750 per employee. Up to $550 remaining in your account at the end of the plan year will carry over to the following plan year.