Health Savings Account (HSA)
Here are some important things to know about the HSA.
Triple Tax Savings
The HSA is the only triple-tax savings vehicle allowed by the IRS. Contributions, investment earnings, and qualified distributions are all exempt from federal income tax, FICA (Social Security and Medicare) tax, and state income tax (except in New Jersey and California) — both when you contribute to the account and when you take money out for qualified health care expenses.
Not All Colleagues Are Eligible
To be eligible for the HSA, you must be enrolled in Pfizer’s high deductible health plan (HDHP), which is the HSA Copay medical option. You’re not eligible for the HSA if:
- You’re someone’s tax dependent.
- You’re enrolled in non-HDHP health care coverage, such as the Pfizer Network Copay or Traditional Coinsurance option, Medicare, Tricare, or coverage through a spouse/partner or parent. (Being age 65 does not preclude you from eligibility.)
- You have access to a health care flexible spending account or a general purpose HCA, or have access to a health reimbursement account that covers pre-deductible medical expenses.
Further restrictions may apply, for instance, if you are receiving medical benefits from the Indian Health Service or the U.S. Department of Veterans Affairs for non-service-related disability treatment. For more details about HSA eligibility, refer to the IRS website. If you have questions about your eligibility to contribute to an HSA, contact your tax advisor.
For Extra Savings
By contributing to both the HSA and the Limited Purpose Health Care Account (LPHCA), and using LPHCA dollars for out-of-pocket dental and vision expenses, you may save your HSA funds for other purposes — including future medical expenses — so you maximize your tax savings. If you expect significant medical expenses during the year, you may want to consider both the HSA and the LPHCA during Annual Enrollment.
When Your HSA Becomes Available
If you’re a new hire/newly eligible colleague and you enroll in the HSA Copay option, your Health Savings Account takes effect as of your start/eligibility date. Pfizer’s contribution, if any, will be posted to your account one to two weeks after your HSA enrollment date. HealthEquity will mail a Welcome Kit to you, which will include your Visa Debit Card. Additionally, you will receive an email from HealthEquity any time a contribution is posted to your account. Note: You must enroll by November 1 of a given year to receive the Company contribution (if applicable) for that year or elect to contribute via payroll. After November 1, you may only make contributions directly to HealthEquity. Check out the HSA Copay FAQs to learn more.
(As of September 1, 2022 or hire date if later)
(individual/family)
Want the Advantages of HSA Copay but Are Worried About the Higher Deductible?
Here are a few features to keep in mind as you consider how the deductible may impact your personal situation:
- Your contributions (the amount that comes out of your paycheck to pay for medical coverage) will be lower with HSA Copay. The additional amount you would spend on contributions if you elected another option could go into your HSA each month to build up your savings.
- If you are eligible for a Company contribution to the HSA, you can use those funds to help you pay for out-of-pocket costs including your annual deductible. Pfizer will make the full Company contribution available to you as soon administratively feasible in January in case you wish to use those funds to offset the deductible.
- Most in-network preventive medical care, as well as preventive vaccines and certain medications (as noted on the Affordable Care Act (ACA) Drug List), are covered at 100 percent, even before you meet the deductible.
- If you receive a medication on the HSA Copay Preventive Drug List — the deductible won’t apply, you will pay your regular post-deductible cost share (including no copay for Pfizer medications without a generic available)
- CVS Caremark offers an interest free payment program for prescriptions ordered through CVS mail-order that cost you more than $250 out of pocket, and specialty medications ordered through CVS Specialty. Contact CVS Caremark or CVS Specialty for details.
- Voluntary supplemental health benefits can help you cover out-of-pocket costs. Take a look at Accident Insurance and Critical Illness Insurance (both with new lower contributions) and the new Hospital Indemnity Insurance option. These options pay a tax-free lump sum payment if you have a qualifying health event, which means you’ll have a source of income to apply towards your deductible and out-of-pocket maximum, as well as other expenses you may have.
