Health Savings Accounts (HSAs)
Health savings accounts (HSAs) are tax-advantaged accounts set up to pay for qualified health care expenses and allow for the accumulation of savings to pay for future health care expenses. HSA funds can be withdrawn for any reason and withdrawals are not taxable when used for qualified health care expenses. Accounts are set up with banks and other qualified financial institutions. Contributions are tax-free and there is no time limit for using HSA funds, as funds rollover from year to year.
Participation in an HSA requires enrollment in an HSA-compatible, high-deductible health plan. The high deductible makes the premium less expensive. In California, Health Net offers members high-deductible HSA-compatible PPO plans.
To ensure proper reimbursement, participating providers should bill Health Net for services first; providers should not collect deductibles, copayments or coinsurance at the time of service. Refer the discussion of Health Savings Account Claims Processing in the Claims and Provider Reimbursement section for more information.