Health Savings Account (HSA)

If you enroll in the Investor Plan (HSA) medical option in 2019, you will have access to a Health Savings Account or HSA, through Optum Bank, which allows you to save money for healthcare expenses on a tax-free basis. But what exactly does that mean? It means money that you (and John Hancock) deposit into your HSA is not taxed, and even better, any money that you keep in your account grows tax-free! Distributions for qualified medical expenses are not taxed, either.

Important! If you enroll in the Investor Plan (HSA) medical option in 2019, we will make a $500 or $1,000 tax-free contribution to your HSA in January, depending on your coverage level. That’s free money!

  • How can I use the money?

    You can use HSA dollars to help pay for your deductible and coinsurance or other qualified medical expenses like copays, prescription drugs, etc. Any unused funds remaining in your HSA at the end of the year will roll over (tax-free) to the next year. Plus, HSAs are portable, meaning that the money is yours to keep forever, even if you decide to change employment, retire or terminate your employment for any other reason.

  • How much can I contribute?

    For 2019, the IRS maximum for HSA contributions is $3,500 for Employee Only coverage and $7,000 for all other coverage levels. If you are age 55 or older, you have the option of contributing an extra $1,000 as a catch-up contribution in 2019.

  • Can I invest the money in my HSA?

    You bet! Once your account balance reaches $2,000, you can choose from a selection of investment options, allowing your HSA to grow in value year over year. If you retire or terminate your employment with John Hancock for any reason, any unused funds are yours to keep.

  • How can I access my HSA?
    • From a computer – To access your HSA from a work computer, visit www.optumbank.com. If it is your first time logging in, you will need to create a username and password, which you will use each time you access the site.
    • From a mobile device – With Optum Bank, you have the option of accessing account information, including account balances, transactions and claims activity from the Optum Bank mobile app. To download the mobile app, visit the app store on your mobile device.
  • HSA fast facts
    • You can access funds with a debit card or through www.optumbank.com. Unlike an FSA, withdrawals are limited to the amount that is actually in your account when you incur an expense. HSAs are portable and will move with you if you change employment, retire or terminate your employment for any other reason.
    • HSA contributions can come from you, John Hancock, or both — all in the same tax year, up to annual limits. See How much can I contribute above.
    • HSA contributions (yours and John Hancock’s) go in tax-free, earn interest tax-free and come out tax-free as long as you use the money to pay for qualified healthcare expenses.*
    • Unused contributions roll-over from year-to-year, and interest continues to grow on a tax-free basis.
    • You can use HSA funds to cover health insurance deductibles and any copays for qualified medical services, purchase over-the-counter drugs with a doctor’s prescription or pay health insurance premiums during any period that you are receiving unemployment benefits.
    • Your HSA funds can also be used as a savings vehicle for qualified medical expenses when you retire.
    • HSA money used for non-qualified healthcare expenses is subject to taxes, plus a 20% penalty. Once you reach age 65, you can withdraw the money for non-medical reasons without the 20% penalty (withdrawals will still be subject to normal income taxes).

    *You will only receive an HSA contribution from John Hancock if you are enrolled in the Investor Plan (HSA) medical option.

John Hancock and Manulife Financial reserve the right to modify or amend, at any time and in any way whatsoever, the terms of these plans, including eligibility requirements, and to terminate the plans completely.