An HSA feature
If you elect the HDHP, you have the option to enroll in a health savings account (HSA), which you can use to pay for eligible out-of-pocket medical and prescription costs.
Vanguard will make an annual contribution in the following amount, in the month in which the HSA is established:
- $600 for individual HDHP coverage.
- $1,200 for family HDHP coverage.
You may establish and contribute to an HSA with any provider, but Vanguard’s contributions will only be made to an account in your name with HealthEquity®, Vanguard's HSA provider.
You own your HSA, and any unused HSA dollars roll over from year to year. You can keep your HSA even if you leave Vanguard or switch medical coverage from the HDHP.
Additional benefits of your HSA
In addition to Vanguard's employer contribution to your account, your account at HealthEquity also has the following benefits:
- You may become eligible for additional Vanguard contributions by participating in the Health Smart Rewards wellness program.
- You can make additional HSA contributions through pre-tax payroll deductions.
- Vanguard will pay your annual administration fee as long as you remain employed at Vanguard and enrolled in the HDHP. If you terminate from Vanguard or switch medical coverage from the HDHP, HealthEquity will invoice you directly for payment of the fee.
- You may choose to invest your HSA dollars in a variety of Vanguard funds offered by HealthEquity as investment options.
- You can pay for health services with your HealthEquity Visa® Health Account Card.
For more information, see Health savings accounts (HSAs): Overview.