Health Savings Account

What you need to know

Just like the name suggests, a Health Savings Account (HSA) is a savings account that lets you save pre-tax dollars to use for health care expenses. It’s available to those who enroll in the UnitedHealthcare Consumer Directed Heath Plan (CDHP).

Once you enroll in the CDHP, you’ll receive a welcome kit from HealthEquity with your debit card and information about your HSA.

What makes the HSA so great?

Use your HSA money to pay for qualified medical expenses, including deductibles and copays—or keep it for future expenses, even those you incur in retirement. Look at all the ways you win with an HSA:

  • Your contributions to the HSA are pre-tax. You can select a contribution amount when you enroll, and contributions are taken from your paycheck pre-tax. 
  • PayPal also contributes FREE money—$500 annually for employee-only coverage and $1,000 annually if you cover dependents. (The company’s contribution is included in the first paycheck after you enroll in the plan.)
  • The maximum total annual contribution (yours and PayPal's) to your HSA is $3,600 for employee-only coverage and $7,200 if you cover dependents. You can contribute an additional $1,000 if you are age 55 or older.
  • You earn pre-tax interest on investment returns on your HSA balance.
  • Any money in your HSA that you don't spend stays in your account to help you save for future medical and retiree health care expenses.
  • Your HSA belongs to you—always. You take it with you if you leave the company or retire.

Find out more about how you benefit with an HSA.

What can I use my HSA money for?

The IRS determines what expenses can and cannot be reimbursed. Here are just a few examples of qualified medical expenses you can use your HSA money for:

  • Dental treatment
  • Diagnostic tests and devices
  • Doctors’ visits
  • Prescriptions
  • Eyeglasses, contact lenses, and exams
  • Hearing aids and batteries
  • Smoking cessation

What if I use HSA funds to pay for nonqualified medical expenses?

Any amount you spend from your HSA on a nonqualified expense will be considered part of your taxable income. You will also owe a 10% penalty on that amount (unless you reach age 65, become disabled or die, or roll over your HSA to another HSA), and nonqualified expenses will not apply toward your deductible. For a list of qualified medical expenses, visit the IRS website at, and type Publication 502 in the search box.

Accessing your HSA funds

Contributions are made to your HSA each pay period, but you must accumulate enough in your account before you can use the funds to pay for your health care expenses. You can use those dollars to pay for any medical care you’ve received or other eligible health care expenses incurred since the date you established your HSA.

Once you’ve established your HSA with HealthEquity, you’ll receive a debit card that you can use to conveniently pay at the pharmacy, doctor’s office, or elsewhere. You can pay your bills for qualified medical expenses online from your HealthEquity account or pay out of pocket and reimburse yourself online or by withdrawing money with your debit card from any ATM with the Visa® logo.

As a UnitedHealthcare CDHP with HSA member, you can keep track of your HSA activity and balance, as well as get details on all your medical claims at

Save your receipts!

Although you don’t need to submit receipts when you’re reimbursing yourself with your HSA dollars, you should save your receipts for tax purposes.

Since you own the HSA, you are responsible for providing documentation to the IRS, if you ever need to, for the expenses charged to your HSA. The money that goes into and out of your HSA—contributions and disbursements—is reported to the IRS each year. It’s important that you review this account with your tax advisor, since it’s like having another banking or savings account.

If you enroll in the CDHP with HSA, the Health Care FSA becomes a "limited-purpose" FSA that you can use to reimburse yourself for eligible dental and vision expenses.

Changing your HSA contributions

Contributions towards your HSA can be made pre-tax through payroll or after-tax directly to your HSA through HealthEquity. You can change your contribution at any time throughout the year and funds are available as they are deposited into your HSA.

Updating your HSA payroll contributions

The amount you contribute per paycheck on a pre-tax basis towards your HSA can be changed at any time throughout the year and will be effective within one to two pay periods. To change your HSA contribution amount:

  • Access Your Benefits ResourcesTM (YBR) (@Work) | (Log In).
  • Select “Medical” on the main landing page.
  • Under Health Savings Account, click “Change Your Contribution,” then click “View/Change.”
  • Click “Continue” and enter the amount of your contribution. The estimated amount of your per-pay-period deduction will be provided based on the total contribution amount you entered.
  • Select “YES” under HSA Affirmation to confirm your election change and click “Continue” to finalize.

Contributions can be made outside of payroll directly with HealthEquity. To change your contributions, login to your Health Equity account and select “Make Contribution” from Quick Links.

Contributions made outside of payroll will not be reflected in your HSA year-to-date (YTD) total on your paystub. Contributions made outside of payroll still apply to the contribution limit.

Contribution limits

The 2021 maximum HSA contribution limit (your contribution and PayPal's) is $3,600 for employee-only coverage and $7,200 if you cover dependents. You can contribute an additional $1,000 if you are age 55 or older.

PayPal contributes $500 for employee-only coverage and $1,000 annually if you cover dependents. PayPal’s contribution is funded at the beginning of the year for existing participants or the month following new hire enrollment.

If your spouse has an HSA and either of you is covered under the other’s plan, your combined HSA contributions are limited to the annual IRS contribution maximum for family coverage ($7,200 in 2021).

If you exceed the annual limit

If you contribute too much to your HSA, you will pay regular income tax plus a 10% tax penalty on the excess amount you contributed, per IRS rules. (Note: Different rules apply if you contributed too much because you left the plan during the year.)

More information

A list of eligible expenses can be found in the IRS Publication 502.

To access your PayPal HSA account with HealthEquity, visit or call 866-346-5800.

HSA vs. Health Care FSA

  Health Savings Account (HSA)
Health Care FSA
Your Spending Account™(YSA) 
What if I have BOTH types of accounts? No impact on HSA FSA-eligible expenses are limited to dental and vision only
Pre-tax contributions Yes Yes
Who contributes? You and PayPal You
2020 maximum total annual contribution $3,600 (employee-only coverage)
$7,200 (employee + covered dependents)
Can the account grow? Yes, through pre-tax interest and investment earnings. No
Is the money taxable when used? Not if it’s used for eligible expenses. No, but it can only be used for eligible expenses.
Do I lose unspent money at the end of the year? No, you own it and keep it. Up to $500 of your 2020 year-end Health Care FSA balance will automatically be added to your 2021 plan year balance. There is no carryover feature for the Dependent Care FSA.
Do I have to enroll each year? Your HSA remains active as long as you are in the CDHP, and the company contribution continues year to year.

If you contribute to the HSA, your election returns to zero at the end of each calendar year. You may elect to contribute (or change the amount) anytime during the year.

If you leave PayPal or retire, your HSA is no longer active for you to contribute. But the money is still yours to spend on eligible medical expenses.

Yes, if you want to participate for the following year.
Can I change my contribution rate during the year? Yes, at any time. No, only at Annual Enrollment or within 31 days of a qualifying change-in-status event.
Can I take the account balance with me when I leave PayPal? Yes, the money in the account is yours to use anytime in the future, even if you leave PayPal or retire. No

Read the full IRS guidelines for HSAs and FSAs.

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Confused about the HSA? Still have questions? Watch this video or read the FAQs to learn more.