Health Savings Account (HSA)

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The HSA is available if you enroll in the CDHP. You will receive a card for the HSA if you don’t already have a card from Optum. For 2026, UofL will contribute a set amount based on the coverage level you chose.  

HSA Eligibility

The IRS has rules about who can participate in an HSA. You can have an HSA if you:

  • Aren’t covered by any other health plan that is not a high-deductible health plan (HDHP). The CDHP is a qualifying high-deductible health plan.
  • Are not enrolled in Medicare, TRICARE or TRICARE for Life
  • Haven’t received Veterans Affairs (VA) benefits within the past 3 months, except for preventive care; if you have a disability rating from the VA, this exclusion doesn’t apply
  • Can’t be claimed as a dependent on someone else’s tax return
    Other restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.

Note: If you enroll in the CDHP medical plan with HSA, once you enroll in any part of Medicare, you are no longer eligible to contribute to an HSA or receive the employer contribution. Please reach out to benefits@Louisville.edu if you are not eligible for the HSA.

HSA Rollover from previous employers: If you have funds from a prior employer’s HSA, you may roll these funds into your UofL HSA by completing the HSA Rollover Request Form. Optum does not charge a rollover fee; however, please check with your previous HSA provider to confirm whether any fees may apply.

HSA contributions may come from both you and UofL, but the timing is different. You do not have to contribute to the HSA to receive UofL contributions.

  • Employee contributions are taken from each paycheck you receive from the university and are deposited into your HSA by each pay date. These are not front-loaded; they accumulate over time.
  • Employer contributions are front-loaded, meaning UofL contributions will be deposited into the employee’s account within 7-10 business days.
  • If you no longer receive a paycheck from the University or wish to make your own contributions to your Health Savings Account (HSA), please follow the instructions below. Be sure to track your total contributions for the year to avoid exceeding the IRS annual limit.
    • Log in to Optum.com. From the homepage of the portal, select "Manage HSA Contributions" from the "I want to" drop down menu options. From here, you may add or change your contributions.

HSA Beneficiary Designation

If you have a Health Savings Account (HSA), it’s important to designate a beneficiary. You can do this through the Optum portal or the Optum Financial Mobile App.

If you are married and your spouse is listed as your beneficiary, they will become the owner of the account and assume it as their own. If you are unmarried, your account will cease to be an HSA. The money in your account will pass to your beneficiaries or become a part of your estate, and it will be subject to applicable taxes.

Here’s how it works

Tax-free money goes in:

The balance grows tax-free

Money comes out tax-free

The account gets funded by these sources:

UofL:

$500 employee (ee)

$1,000 ee + spouse

$2,000 ee + child(ren) or ee + family

An amount you choose to contribute from your paycheck up to IRS limits

*Employees may not receive or use HSA contributions for Qualified Adults er IRS regulations.

The total amount you and UofL can contribute to the HSA for 2026 is $4,400 (ee coverage) and $8,750 (all other coverage levels). If you are  55 or older, you can make an additional catch-up contribution of $1,000. When you decide what to contribute, account for the amount UofL is providing to ensure you aren’t exceeding the limit.

There’s no tax on your HSA as it grows with interest.

Additionally, once your balance reaches $1,000, you can invest the amount over that tax free.

Visit optumfinancial.com for more information on investment options.

Use your HSA money for eligible out-of-pocket medical, prescription drug, dental and vision expenses.

If you don’t spend the money in the account, the balance at the end of the year rolls over. It’s your money to keep and spend tax-free on eligible health care expenses whenever works best for you, even if you leave the University.

At age 65, you can use your Health Savings Account (HSA) for any purpose without incurring a penalty, but the funds will be subject to ordinary income tax if it is not a qualified expense. This means you can withdraw your HSA funds for nonqualified expenses without facing a 20% penalty which applies if you are under 65. However, you will still need to pay income tax on the amount withdrawn.

  

Contact Optum 

Customer Service: 866-860-7260

Website: Optum 

Mobile App: Optum Mobile App 

Optum Reimbursement Instructions & Claims Form (PDF)