A health savings account (HSA) is a tax-favored personal savings account which works with your consumer-driven high deductible health plan. HSA dollars can be used to pay for qualified medical expenses such as deductibles, copays, dental, and vision care. For a complete list of qualified medical expenses, see Publication 502.

HSA Company Funding

If you enroll in one of the CDHP medical plans, Frontdoor will contribute to your HSA (see the chart above). To receive the Frontdoor funding, you must elect the HSA even if you choose not to contribute your own funds; otherwise, you will not receive the company funding. Frontdoor deposits 50% at the beginning of the plan year, with the remainder of the funds deposited per pay period throughout the plan year. Company funding is included in your annual contribution limit. If you are hired on or after January 1, 2024, you will receive a prorated amount of the company funding your first year.

HSA Major Benefits

  • Funds always belong to you.
  • Funds roll over from year to year.
  • Lowers your taxable income.
  • Helps you build a healthcare nest egg for emergencies or healthcare expenses in retirement.

HSA Triple Tax Savings

  • Tax deduction when you contribute to your account.
  • Tax-free earnings through investment.
  • Tax-free withdrawal for qualified medical expenses.

Opening an HSA

When you elect to contribute to the HSA, our partner, Alight Smart-Choice Accounts, will open an account for you at UMB Bank. Your account will start on the effective date of your coverage, if it’s the first of the month. Otherwise, it will start on the first of the following month.

You are Eligible for an HSA if:
  • You are enrolled in an IRS qualified high-deductible health plan, such as the Basic or Enhanced CDHP Medical Plan.
  • You are enrolled in an IRS-qualified high-deductible health plan with your spouse’s or other employer-sponsored plan.

You Are Not Eligible for an HSA if:

  • You are enrolled in a traditional PPO plan through your spouse or other employer-sponsored plan options.
  • You are enrolled in a government-sponsored program (Medicare, Medicaid, Tricare, etc.).
  • You have received VA benefits within the last three months (unless receiving benefits for a service-related disability).
  • You are claimed as a dependent on someone else’s tax return.