Health Savings Account (HSA)

The Health Savings Account (HSA), administered by Nyhart, an Ascensus company, is a special tax-advantaged bank account that can be used to pay for IRS-qualified health expenses for you, your spouse, and your tax dependents. You can open an HSA only if you are enrolled in the Anthem PPO HDHP plan.

HSA Basics

Am I eligible for an HSA?

When you enroll in the Anthem PPO HDHP (high deductible health plan), you are also eligible to open an HSA if you meet the following IRS-defined requirements:

  • You must be covered under a high deductible health plan (HDHP)
  • You have a valid Social Security Number
  • You are not listed as a dependent on someone else's tax return
  • You are not enrolled in a federal government plan like Medicare A, B, or D, or Tricare (if you have VA benefits, receiving preventive care services or treatment for a service-related disability from the VA does not disqualify an individual from participating in an HSA)
  • You have no other medical coverage
In order to be eligible for tax-free contributions into an HSA, the IRS requires that you have no other medical coverage other than an IRS-qualified high deductible health plan. Your spouse may have other coverage but you cannot be covered on their non-HDHP medical plan, HRA or unrestricted FSA/TSB Healthcare plan and still be eligible for tax-free contributions to your HSA.

How it Works

  • Each pay period, you make pre-tax contributions to your account through payroll deduction. IU’s annual contribution is made in one lump sum.
  • Use your HSA to pay for eligible health expenses for you or any of your eligible dependents – even if they aren’t covered on your health plan.
  • Let the money in your account rollover and grow over time. Watch your money accumulate interest and increase in your account, or open an investment account through Nyhart and invest in a wide range of mutual funds.
  • When you enroll in Medicare, you are no longer eligible to make tax-free contributions to your HSA. However, you still have access to your funds to pay for your eligible health expenses.
  • The funds in your account are yours to keep until you spend them. You can continue to use them for eligible health expenses even after you leave IU or retire. 

Eligible Expenses

Examples of qualified health care expenses include:

  • Out-of-pocket expenses such as your HDHP deductible and coinsurance
  • Prescriptions
  • Dental and orthodontia services
  • Vision services, like glasses or contacts
  • Medical equipment & supplies
  • Acupuncture
  • Disability aids
  • Hearing aids
  • Disposable face masks (with note from doctor)
  • Thermometers
  • Certain over-the-counter (OTC) medications
  • Menstrual care products
  • Travel to and from medical services
  • Over-the-counter (OTC) COVID-19 tests
  • Personal protective equipment (PPE) for the primary purpose of preventing the spread of COVID-19 (e.g. face masks, hand sanitizer, and sanitizing wipes)

Find a complete list of allowable expenses review IRS Publication 502.

How much can I contribute to my HSA?

You are required to make a minimum $300 annual contribution through pre-tax payroll deductions on a pre-tax basis. You can make additional contributions up to the IRS-allowed maximum:

  • $3,850 for employee-only coverage level
  • $7,750 for all other coverage levels (employee w/spouse, employee w/child(ren), or family)
  • An additional $1,000 catch up contribution for those who are or turn 55+ during the current tax year

The IRS maximum includes both IU’s contribution and your contributions to your HSA. These maximums can be affected by your spouse’s HSA contributions, Archer MSA contributions, and/or the number of months you are covered under an HDHP. Details on the calculation of the IRS prorated contribution maximums can be found in IRS publication 969.

How much does IU contribute to my HSA?

IU makes a lump sum contribution to your account each year you are enrolled in the Anthem PPO HDHP based on your elected level of coverage. For 2023, IU’s contributions is:

  • $1,300 for employee-only coverage
  • $2,600 for all other coverage levels.

If you enroll in the HSA during Open Enrollment, IU’s contribution is made with your second paycheck in January. For mid-year elections (e.g. new hires, life event changes), IU’s contribution is typically made by the second payroll cycle after your election is made; however, the timing depends on when the election is made and on payroll deadlines. Access to those funds depends on when the HSA is established with Nyhart.

If you enroll in the HSA or make changes to your coverage on or after September 1 you will not receive IU’s contribution (or an adjustment to IU’s contribution) for that year.


Below are answers to the most frequently asked questions regarding the Health Savings Account.

What type of health expenses can I use HSA funds for?

Your HSA funds can be used to pay for covered expenses incurred by you, your spouse, or your IRS-qualified tax dependents, even if they aren’t enrolled on your medical plan. Examples of eligible expenses include:

  • Costs that apply toward your HDHP annual deductible and coinsurance (e.g. medical services, prescriptions, mental health services, etc).
  • Qualified health expenses that your health plan might not cover, such as vision care (eyeglasses and contact lenses), dental and orthodontic services, and certain over-the-counter medications and supplies.

Detailed information about qualified expenses can be found in IRS Publication 502 or by contacting Nyhart.

How do I login to my Nyhart account?

Mobile App: Nyhart IU Mobile for Apple or Android

Follow these instructions to create your initial web and/or mobile app accounts.

How do I access the funds in my HSA?

Once contributions are made to your account, you can access your funds in several different ways:

  • Use the IU Benefit Card at healthcare provider locations*. The IU Benefit Card is a debit-type Visa card that can be used to pay for your eligible expenses at the time of service at any healthcare provider, such as doctors’ offices, pharmacies, hospitals, labs, vision care providers, dental offices, chiropractor’s offices, etc.
    • Pay immediately by swiping your card at your provider’s office
    • Write the card number on the provider’s bill and return to your provider
  • Make an HSA Distribution online. Log in to your account at and select the Make an HSA Transaction button on the Welcome page.
    • Send a payment to a provider directly from your account (no fees for payments made to providers)
    • Transfer funds directly from your HSA to a personal bank account to reimburse yourself for health expenses that you have paid out of pocket (no fees apply).
    • Send yourself one-time or repeating checks to reimburse yourself for health expenses that you have paid out of pocket (a $10 fee is charged for each check distribution sent to yourself)

* Special rules apply to the use of the IU Benefit Card when enrolled in both the HSA and the Healthcare Flexible Spending Account (FSA).

How do I change my HSA contribution?

You can change, suspend, or stop HSA contributions at any time during the year by submitting an HSA Enrollment / Change Form or by submitting an Optional Benefit Change online:

  1. Log in to the Employee Center using your IU username/passphrase and Duo
  2. Select the Benefit Details tile
  3. Select the Optional Benefit Changes tile
  4. Click the green button to Start Optional Benefit Change
  5. To progress through the OBC process, click the Next button in the upper right-hand corner of the screen.
  6. Verify your personal information, and payroll direct deposit and tax withholding details, and make updates if needed.
  7. Click the Start My Enrollment button. On the next screen click the gray Select button next to the event.
  8. Under the ‘Benefit Plans’ heading, select the Health Savings Account tile and make any desired changes.
  9. Review your elections by selecting the Enrollment Preview Statement button under the ‘Enrollment Summary’ heading. Click the X in the upper right-hand corner of the screen to exit the preview.
  10. When you are finished making changes, click the green Submit Enrollment button under the ‘Enrollment Summary’ heading.
  11. A confirmation message will appear on the screen once your elections have been submitted successfully. Additionally, an e-mail confirming your submission will be sent to your IU email address within one business day. If you do not receive an email, your changes were not submitted properly.

Can I invest my HSA funds?

Yes, an investment account can be opened with Nyhart when you have a balance of $1,000 in your HSA cash account. You can choose from a wide range of mutual funds - asset allocation, fixed income and equity mutual funds – all supporting a range of investment objectives and time horizons. You can review the HSA Investment Options and Fee Schedule, review investment prospectuses online at, or speak with an investment representative by contacting Nyhart at 800-284-8412.

Can I enroll in both the Healthcare Flexible Spending Account (FSA) and the HSA?

Yes, however, when you are enrolled in both accounts, your FSA funds can only be used for dental and vision expenses until your HDHP deductible has been met for the year. Once the deductible is met, the funds in your FSA can then be used for medical and prescription expenses.

Also, when you are enrolled in both accounts, your IU Benefit Card will be a “stacked card.” This means that funds will automatically be drawn from your HSA when used at medical or pharmacy providers, and from your FSA when used at dental and vision providers. Once you have provided proof of meeting your annual HDHP deductible to Nyhart, the card will automatically begin pulling all health expenses from your FSA first, then from your HSA once your FSA funds are exhausted.

What happens if I enroll in Medicare?

Enrolling in Medicare has a major impact on your ability to contribute to an HSA. It is important that you understand the consequences of Medicare enrollment. Review the Medicare & Health Savings Accounts web page for details.


Customer Service

Nyhart, an Ascensus company

Phone: 800-284-8412


IU Human Resources

Phone: 812-856-1234