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Health Care Savings and Spending Accounts

Consumer-directed savings and spending accounts by Blue Cross and Blue Shield of Montana (BCBSMT) help your clients and their employees manage health care costs.

Health Savings Account (HSA)

How HSAs1 Work

  • A BCBSMT HSA is coupled with a federally qualified, PPO high-deductible health plan (HDHP) – an affordable option with lower premiums.
  • An HSA offers triple tax savings:
    • Contributions are tax free
    • Interest and investment earnings are tax free
    • Tax free withdrawals by the employee for qualified medical expenses
  • Funding options: It can be established with funds from the employer, from the employee or both.
  • Aggregate or embedded deductible plans available for ASO clients.  
  • Employee owned. The funds remain with the employee if they leave the plan. The account is portable, making it easily accessible in the event of a job change, plan replacement, or retirement.

Why HSAs Work

  • Employees have access to the same broad PPO network as traditional plans.
  • Encourages employees to become better consumers and spend their health care dollars wisely.
  • Employee ownership improves employee satisfaction.
  • BCBSMT has relationships with HSA administrators who offer preferred pricing, integrated eligibility and claims, and account access via Blue Access for Members, creating an integrated experience for employees with the flexibility, control and transparency they need to make better health care choices and help keep costs low for everyone.

Health Care Account (HCA)

How HCAs Work

  • An HCA is an employer-funded spending account that engages and empowers employees – Employees decide how their health care dollars are spent.
  • Charges for covered medical care services are paid from this account.
  • Money spent from the HCA is also applied toward the annual deductible.
  • Unspent funds roll over from year to year. The employer can cap the amount that accumulates in the account.
  • Account balance maximums allow the employer to choose a specific or unlimited dollar amount.
  • Employer owned: if an employee leaves the plan, the funds return to the employer.

Why HCAs Work

  • Annual funding can be provided in full, or on a semiannual, quarterly or monthly basis. Proration opportunities available.
  • Incentives allow the employer to fund the HCA after an employee performs a wellness activity, such as a Health Assessment or annual physical.
  • BCBSMT offers a substantial selection of HCA products and funding features that enable your clients to follow a multiyear consumerism strategy.

1. Health Savings Accounts, including products under our BlueEdge product portfolio, have tax and legal ramifications. BCBSMT does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of assessing tax liability or avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products. 

Last Updated: Nov. 28, 2023