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Understanding Health Savings Accounts

If you enroll in the Health Savings option of the UVA Health Plan, you'll automatically be enrolled in a Health Savings Account (HSA). An HSA lets you save and use tax-free money for eligible health care, prescription, dental, and vision expenses. Any unused funds roll over from year to year and remain yours to use for future eligible health care costs. 

Employer Contribution

Individual Plan: $1,000
Family Plan: $1,500

Note: The employer contribution counts towards your annual HSA IRS Contribution Limit.

2027 HSA IRS Contribution Limits

Individual: $4,400
Family: $8,750
Catch-up (Age 55+): Above Limits + $1,000

Note: You can adjust your employee contribution at any time of the year.

The HSA offers a triple tax advantage that make it an excellent long-term savings vehicle:

  • Money goes into your HSA tax-free
  • Your HSA savings used to pay for qualified medical expenses are not taxed
  • Any extra savings can be invested, and earnings and interest grow tax-free
Return to Homepage Frequently Asked Questions

Who is Eligible?

All active, benefits-eligible employees enrolled in the Health Savings option are required to have an HSA. You must be eligible for an HSA in order to enroll in Health Savings. You are eligible for an HSA if:

  • You are not a wage employee
  • You do not hold a J1 visa
  • You are not enrolled in Medicare or Medicaid, or are listed as a dependent on someone else’s tax return
  • You, or your spouse, do not have a balance in a health care FSA, are part of a FSA grace period, or your plan year is not over
  • You have not received healthcare benefits from the Veterans Administration (TRICARE) within the last 3 months
  • You will not be enrolled in another healthcare plan as a dependent, spouse, or subscriber (unless if that plan is also a high deductible health plan) when the HSA begins.
  • You have not already contributed the annual federal limit to another HSA, Medical Savings Account (MSA), or HRA in the same calendar year

Getting an HSA for the First Time?

Employer Contribution

Individual Plan: $1,000
Family Plan: $1,500
2027 HSA IRS Contribution Limits

Individual: $4,400
Family: $8,750
Catch-up (Age 55+): $1,000

  • The employer contribution counts towards your annual HSA IRS Contribution Limit.

    Because UVA contributes to your HSA, a portion of your annual IRS contribution limit is already funded for you. After you receive the University contribution, you may contribute up to:

    • $3,400 if you are enrolled in the Individual Health Savings plan.
    • $7,250 if you are enrolled in the Spouse or Family Health Savings plan.

  • After enrollment watch for follow-up from UVA HR and/or Fidelity to open your account
    • Watch for important information via mail and email after Open Enrollment closes from HR and/or from Fidelity to ensure your HSA is opened properly and promptly.
    • If your HSA account is not open and ready for funding within 90 days of the first contribution, you will forfeit the employer contribution for that year.

  • You cannot have a P.O. Box as your Address in WorkDay and open an HSA

    Anyone with a P.O. Box as their home address in Workday will have their request to open a health savings account rejected by Fidelity. It is a Patriot Act requirement to have a physical address on file before the HSA can be opened. Please verify your contact information contains your physical address within Workday during Open Enrollment. 

  • You can use your HSA funds for eligible health care, dental, vision expenses

    You can use your pre-tax HSA funds for eligible health care, dental, vision expenses. If you use your Health Savings Account (HSA) card for non-medical expenses, the funds lose their tax-advantaged status, and you will generally owe income taxes plus a 20% penalty on the withdrawn amount.

  • Switching from an FSA to an HSA

    If you are switching from UVA PPO or Choice Health to Health Savings and you have a Full Healthcare FSA, you must close your FSA. You will need to have a balance of $0.00 in your Full FSA by December 31 to open your HSA. Otherwise:

    • Your HSA cannot be opened, and you will not be able to make employee contributions until April 1, 2026
    • You will not be able to use money in your account to cover any expenses incurred prior to April 1, 2026

  • You can still enroll in limited flexible spending accounts

    If you are enrolled in a Health Savings Account (HSA), you are not eligible for a Full Healthcare Flexible Spending Account (FSA), but you can enroll in a Limited and/or Dependent Daycare FSA to maximize your savings.

  • Your HSA balance rolls over from year to year, earns interest, and remains yours to keep—even if you leave UVA.

    Your HSA balance rolls over from year to year, earns interest, and remains yours to keep—even if you leave UVA. You may also invest your HSA funds in a variety of investment options, including stocks, bonds, and mutual funds, for the potential to grow your account over time. Any investment earnings are tax-free when used to pay for eligible health care expenses.

Dates and Next Steps

  • Open Enrollment begins on Monday, October 5 and remains open until 11:59 p.m. on Friday, October 16.
    • You will receive a task in your Workday Inbox on October 6 to get started.
    • After open enrollment ends, benefit changes will be limited to Qualifying Life Events
  • On January 1, 2027 the elections you made during Open Enrollment will take effect.
    • Any updates to your paycheck deductions will appear on your first 2027 paycheck.
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