About Health Savings Accounts

HSA's at-a-glance
Are you eligible for an HSA?
HSA advantages
HSA contributions
Getting started with your HSA
Paying with your HSA
Interest and investment earnings
HSA tax facts

The CDHP medical plans come with a Health Savings Account, or HSA that is generously funded by the Company. This page describes important aspects of HSAs, including advantages of having an HSA, how they work, and more.

HSAs at-a-glance

Health Savings Accounts (HSAs) are like personal savings accounts, but the money in them is used to pay for qualified health care expenses.
HSAs offer significant tax advantages.
HSAs are approved by the federal government and in most states.
If you are enrolled in a Canon Medical Systems medical plan, the Company will deposit tax-free money into your HSA each January, and you can contribute your own tax-free dollars, up to IRS limits. Learn more about employer and employee tax-free contributions.
You can use your HSA money on health care expenses this year or save it for future expenses
Your HSA can lower your taxes if you contribute your own pre-tax money
Unused HSA dollars roll over from year to year
You own your HSA, so you can take it with you if you leave the Company
Your children under age 26 may be covered by the medical plan, but tax laws do not allow HSAs to be used for adult dependent children unless they are considered a tax dependent.

Watch these videos for more information about HSAs:

Voya HSA Benefit Basics video

Are you eligible for an HSA?

Because HSAs have such great tax advantages, the IRS has rules about who is eligible to open or contribute to them. You are eligible for an HSA if you meet all of the following conditions:

The Canon Medical Systems medical plan (CDHP Basic, CDHP Select, or CDHP Premier) is the only medical plan in which you are enrolled
You aren't covered as a dependent under your spouse's or parent's plan (e.g., PPO, POS, or HMO)
You aren't claimed as a dependent on another person's tax return
You aren't enrolled in any part of Medicare
You aren't enrolled in Medicaid, TRICARE, TRICARE for Life, or a military benefits program
You haven't received VA hospital care or medical services within the past three months other than those related to a service-related disability or preventive services
You haven't been covered by a spouse's general purpose health care FSA for the tax year in which you will claim your HSA deposits as tax deductions
You have a valid U.S. residence and a valid Social Security Number
You are not a resident of Puerto Rico or American Samoa

When you initially enroll in a Company medical plan, the online enrollment system will help you determine if you are eligible for an HSA or an HRA.

If you have dependent children under age 26 covered by your Company medical plan: The tax laws regarding Health Savings Accounts (HSAs) do not allow HSAs to be used for adult dependent children unless they are considered a tax dependent. IRS Publication 969 at the IRS website provides more information about whose expenses may be paid with HSA funds. If you have a child who is under age 26 but no longer a tax dependent, he or she may open and fund an HSA at their own bank, up to the current year's family maximum allowed by the IRS. As a Canon Medical Systems employee, you may keep contributing to your own HSA, up to the IRS allowable maximum. If you have questions, you may contact Voya customer service at 833-232-4673. Because tax law can be complicated, you may also want to consult with your tax advisor.

Not eligible for an HSA? If you're not eligible for an HSA, the Company will open a Health Reimbursement Account for you (see below for the difference between HSAs and HRAs).

Important Note: Domestic partners and their children may be enrolled in a Company medical plan, but their expenses may not be paid through the HSA unless they qualify as federal tax dependents.

HSA advantages

Free money from CMSU. Every January, CMSU makes a base Company HSA contribution of $250 for the “Employee Only” coverage tier and $500 for all other coverage tiers. You can earn extra money for your HSA by completing the Annual Wellness Incentive.
Federal triple tax advantage. HSAs have three federally-approved tax advantages:
- Tax-free contributions (yours and CMSU’s)
- Tax-free interest earnings and investment gains
- Tax-free distributions when used for qualified health care expenses

State exceptions: Some states have different HSA tax laws than federal HSA tax law. At this time, employer and employee HSA contributions are considered taxable income for California and New Jersey state taxes, and some states may not allow tax-free earnings growth. You should consult with your tax adviser for state-specific details.

The money in your HSA is yours to keep. You own your HSA, and it remains with you even if you leave the Company or retire.
HSA funds roll over to the next year. Unlike Flexible Spending Accounts, there is no “use it or lose it” rule with HSAs. If you have money left in your HSA on December 31, 2025, it will roll over to 2026.
You're in charge. You decide how much you will contribute to your HSA. In addition, you can use your HSA to pay for qualified health care expenses as you incur them OR you can let it grow and save the funds for future health expenses, including those in retirement. It’s your choice.
A long-term savings vehicle. Most people will be responsible for some amount of health care costs in retirement, even if they have Medicare. The tax advantages make HSAs a great way to save for future health care expenses. Unlike money you withdraw from a 401(k), HSA money isn’t taxed on the way out when it’s used for eligible expenses. After years of contributions, potential exists to build a significant nest egg to pay for health care expenses in retirement. When your account balance exceeds $2,000, you will have investment options available to help you grow your HSA for future health care needs.

HSA contributions

Company HSA contributions

Each January, the Company will deposit a Base Company contribution into your HSA account depending on the medical coverage tier you elect. The employer HSA contribution is an annual amount and will be deposited in a lump sum to your account.

In addition to the Base employer contribution, you have the opportunity to earn an additional employer contribution if you complete the annual wellness incentive.

If you join the plan after January 1, both the Base employer HSA contribution and the wellness incentive contribution are prorated.

Medical Coverage Tier	Company Base Contribution*	Company Wellness Contribution*
Employee Only	$250	$500
Employee + Spouse/DP	$500	$1,000
Employee + Child	$500	$500
Employee + Children (2+)	$500	$500
Employee + Spouse/DP + Children (1 or 2)	$500	$1,000
Employee + Spouse/DP + Children (3+)	$500	$1,000
*HSA employer contributions are prorated if you join the plan after January 1.

Your HSA contributions

If you are eligible for an HSA, you may contribute additional pre-tax dollars each pay period to boost your HSA, up to the IRS limits. (The IRS does not allow employee contributions to an HRA.)

For 2025, the IRS limit for HSA contributions (yours plus the Company's) is $4,300 if you cover just yourself and $8,550 if you cover any dependents. Employer HSA contributions count toward the IRS maximum, so you can contribute any amount up to the remainder.
If you are age 55 or older in a calendar year, you can make an additional "catch-up" contribution of $1,000.
If you enroll in an HSA-eligible health plan before the first day of December of any year, you are eligible to make the entire year's tax-free contribution to your HSA, provided you remain enrolled in a high-deductible health plan until December 31st of the following year. During this time, you cannot have other health care coverage that would make you ineligible to contribute to an HSA.
You can start, stop, or change your pre-tax HSA contributions anytime by completing the CDH-HSA change form and forwarding it to the Benefits Department.
The Company does not process single lump-sum HSA contributions through payroll deductions. However, you can make additional tax-deductible contributions to your HSA directly through Voya at any time, up to the IRS limits.
Neither Canon Medical Systems nor Voya monitors your HSA contributions for compliance with IRS limits. It is your responsibility to keep records of Company contributions, your payroll deduction contributions, and any lump-sum contributions you make directly through Voya to be sure you do not exceed your combined IRS limit for all contributions to your HSA.

You may contribute any amount up to the following maximums as permitted by the IRS:

Medical Coverage Tier	If You Complete the Wellness Incentive	If You Don't Complete the Wellness Incentive*
Employee Only	$3,550	$4,050
Employee + Spouse/DP	$7,050	$8,050
Employee + Child	$7,550	$8,050
Employee + Children (2+)	$7,550	$8,050
Employee + Spouse/DP + Children (1 or 2)	$7,050	$8,050
Employee + Spouse/DP + Children (3+)	$7,050	$8,050

*If you don't complete the annual wellness incentive, the additional $500 or $1,000 that you can contribute must be made in a lump-sum directly to Voya.

If you join the plan after January 1, the employee HSA contribution maximums above will be increased by the amount that is prorated from the employer contribution. In other words, you may contribute more than the amounts shown above. See the HSA Employer/Employee Contribution sheet for details.

Note to mid-year enrollees: If you are enrolling in a Health Savings Account for the first time this year (mid-year), you may only contribute up to the IRS maximum if you are enrolled in a high-deductible health plan through the remainder of the current tax year, and the following. Otherwise, your maximum contribution will be pro-rated based on the number of months you are enrolled in the HSA for the current tax year.

Getting started with your HSA

If you’ve never had a medical plan with a Health Savings Account, you may be wondering: Now what? How do I use this plan when I need medical services?

Voya member website

Voya's member website is your one-stop portal to view information and manage all of your Voya accounts (HSA, FSA, and Commuter Benefit). To learn how to get started, navigate the website, manage your accounts, pay for eligible expenses, and report a missing debit card, view the Voya Health Account Quickstart Guide.

Visiting a doctor or facility

Here are tips for using your plan when visiting a doctor or facility:

At the time of your visit, show your health plan member ID card to the office staff. The card gives the provider your group number and member number.
Pay nothing at the time of the visit. The doctor’s office will submit a claim on your behalf to Aetna. If your doctor is not in Aetna’s PPO network, he or she may want to bill you at the time of service, but ask that they bill Aetna first.
Aetna will process the claim and send you an explanation of benefits (EOB), which will detail the cost of your visit, and your deductible and coinsurance.
The doctor will send you a bill for any fees not paid by Aetna. Compare your bill to your EOB to be sure you are billed correctly. The total due on the doctor’s bill to should equal what is listed on your EOB.

Filling a prescription at a network retail pharmacy

Bring your Aetna Member ID card, your HSA debit card, and your prescription to the pharmacy.
The pharmacist will charge you for the copay or coinsurance at the time the prescription is filled.
Pay with your HSA debit card if you wish to use your HSA dollars.

Visiting the dentist or eye doctor

Your Company medical plan and the HSA are designed to work together, but you can also use your HSA to pay for dental and vision expenses because they are considered “health care” expenses. Dental and vision copays, deductibles, and coinsurance are eligible HSA expenses.

Dental expenses: If you want to use your HSA to pay for dental expenses, follow these steps:

Bring your Delta Dental ID card to your appointment.
Pay nothing at the time of the visit. The dentist’s office will file a claim with Delta Dental and bill you later if charges are due. Delta Dental will send you an Explanation of Benefits (EOB) to explain whether you owe anything to the dentist.
Compare your bill to your EOB to be sure you are billed correctly.
Pay your bill over the phone using your HSA debit card if you wish to use your HSA dollars.

Vision expenses: If you want to use your HSA to pay for vision expenses, follow these steps:

Bring your HSA debit card to your appointment (there are no ID cards for the Vision Plan).
The eye doctor’s office will charge you for any applicable copay on the day of your visit. In addition, many VSP providers can tell you in advance what other out-of-pocket expenses you will have.
Pay with your HSA debit card if you wish to use your HSA dollars.

Paying with your HSA

You can choose to pay for care from your HSA or you can choose to pay another way (i.e., cash, credit card) and let your HSA grow. It’s your choice.

If you choose to pay for health care expenses with your HSA, keep in mind that the HSA is like a bank account in that it will only be used if there is a balance in your account. You have access to the full annual Company contribution that is deposited January plus any money you have actually contributed. If you don't have enough money in your HSA to cover an expense, you must pay for the expense out of pocket, and then reimburse yourself once funds are available. For example, if you have a $2,000 bill in February and there is only $1,400 in your account, you may receive only $1,400. You will have to wait until your account accrues enough funds to reimburse yourself for the remainder.

Here are various way that you can pay your share of a provider's bill with your HSA:

Use your Voya Health Savings Account Debit MasterCard® and write the card number on the invoice and return it to the provider.
Pay your HSA expenses online through your account at Voya's website. You will have the option to either request a reimbursement to yourself or pay the provider.
Pay out-of-pocket and reimburse yourself from your HSA. You can reimburse yourself for the qualifying expense through your account at Voya's website. Then you can write yourself a check (if you purchased Voya checks) or withdraw money from an ATM using your Voya Health Savings Account Debit MasterCard®.
Write a check to the provider, using your Voya account (if you purchased Voya checks).
Pay by a combination of methods if there are not enough funds in your HSA to cover the entire expense.

To check your HSA balance or see if you have enough funds in your account to pay your bill, log in to Voya's website.

Debit card convenience

When you enroll in your Company medical plan, Voya, the HSA administrator, will send you a debit card that you can use at:

Doctor offices
Pharmacies
ATMs displaying the MasterCard logo, subject to a $300 limit in a 24-hour period
Other health care facilities, subject to a $10,000 limit at the point of service in a 24-hour period

Administrative fees, such as HSA monthly maintenance fees and ATM usage charges, will be deducted from your account.

Lost or stolen debit card? To report a lost or stolen HSA debit card, call Voya toll free at 833-232-4673, 24 hours a day. A replacement card will be sent free of charge. As a reminder, Voya suggests that you check your HSA bank statement each month, just like you would a primary checking account, to ensure that no unauthorized activity has occurred on their account.

Eligible HSA expenses

You can use your HSA to pay for a wide variety of health care needs: medical, dental, and vision expenses, alternative treatment such as acupuncture and chiropractic services, and prescription drugs.

Generally you cannot use your HSA to pay for health insurance premiums, but there are exceptions. You may use your HSA to pay for:

Any health plan coverage while receiving federal or state unemployment benefits
COBRA continuation coverage after leaving employment with a company that offers health insurance coverage
Eligible long-term care premiums
Medicare premiums and out-of-pocket expenses, including deductibles, copays, and co-insurance for:
- Part A (hospital and inpatient services)
- Part B (physician and outpatient services)
- Part C (Medicare HMO and PPO plans)
- Part D (prescription drugs)

See the complete list at www.irs.gov.

Transferring HSA funds to another account

You may choose to pay for some or all of your medical expenses out of pocket, saving receipts to track your qualified expenditures. Then, at some point in the future, you may reimburse yourself for those expenses by requesting a disbursement from your HSA to another bank account.

When you reimburse yourself is completely up to you. It can be weeks, months, or even years after you’ve paid for the qualified medical expenses. You must, however, have retained the receipts for the qualified medical expenses in the event the IRS inquires.

Interest and investment earnings

Your HSA earns interest, just like a regular checking or savings account. When your account balance exceeds $2,000, Voya allows you to begin investing some of your HSA dollars in mutual funds to help you grow your HSA for future health care needs.

If you choose to invest some portion of the HSA dollars, then Voya will open an HSA investment account for you linked to your HSA deposit account.

Within the investment account, you can make investment elections from a list of mutual funds. You can move money that exceeds the $2,000 threshold from your deposit account into your investment account to buy the investments you have elected, leaving at least a $2,000 cash balance in your deposit account to cover HSA claims. If future medical expenses exceed the balance in your deposit account, you can sell your investments and move the cash back into your deposit account to pay those expenses.

Find your interest rate and annual percentage yield (APY)

To find out your current interest rate and APY, log in to Voya's website to view your account details. Your interest rate and corresponding APY can also be found on your monthly HSA statement from Voya.

HSA balance rolls over and is always yours to keep

When you have a balance in your HSA, it carries over at the end of the year. Your HSA is portable, so you can take your account balance (including Company contributions) with you when you leave the Company or retire.

If you elect COBRA continuation coverage, you can use your HSA money to pay your out-of-pocket costs under the medical plan and your COBRA premiums.

HSA tax facts

IRA and HSA rollovers

You can make a one-time distribution from your traditional IRA or Roth IRA to your HSA. You must direct your IRA trustee to make the distribution directly into your HSA. The amount cannot exceed how much you are eligible to contribute to an HSA for the tax year. The distribution from your IRA is not included in your income, is not deductible, and it reduces the amount that can be contributed to your HSA.

You can also direct an HSA administrator to transfer funds directly into another HSA. Such a transfer is not considered a rollover, and there is no limit on the number of such transfers. You do not:

Include the amount transferred in your income for tax purposes,
Deduct it as a contribution, or
Include it as a distribution from the account.

If you choose to transfer HSA money from one account to another eligible account, you must do so within 60 days from the date HSA funds are distributed to avoid paying taxes on that money.

Important tax forms

There are three tax forms associated with HSAs:

IRS Form 1099-SA. This form provides you with the total distributions that were made from your HSA in a tax year and is used to complete IRS Form 8889. You will receive a separate 1099-SA for each type of distribution you had in that tax year. The five types of distributions are: normal, excess contribution removal, death, disability, and prohibited transaction. Voya will send you this form each year in late January. If you did not have distributions during the tax year, you will not receive a 1099. You do not need to include this form with your tax return.
IRS Form 5498-SA. This form provides you with the contributions that you made to your HSA in a tax year and is used to complete IRS Form 8889. IRS Form 5498-SA is typically available in late January. If you contribute in the new year for the previous tax year, you will receive another 5498-SA form in May. You do not need to include this form with your tax return.
IRS Form 8889. This is the HSA contribution and distribution form for you to complete and attach to your IRS 1040 Form. The information from forms 1099-SA and 5498-SA are used to complete form 8889.

Samples of these forms are available at Voya's website.

In addition, CMSU will send you IRS Form 1095-C in late January. While not specific to HSAs, this form documents that you had employer-provided health coverage during the tax year. CMSU will send you this form each year in late January. You do not need to include this with your federal income tax return.

Other important HSA rules

Tax penalties. A 20% tax penalty applies if you use your HSA for a non-qualified expense (e.g., an expense that isn't health-related). That expense amount will also be subject to normal income tax.
Tax reporting. Keep all receipts for expenses paid through your HSA for documentation. Keep records of all contributions made to your HSA, including the Company contribution, your payroll deduction contributions, and any lump-sum contributions you make directly through Voya. File a Form 8889 with your federal income tax return reporting all contributions and distributions.
Mid-year enrollment. If you enroll in an HSA-eligible health plan before the first day of December of any year, you are eligible to make the entire year's tax-free contribution to your HSA. To do so, you must also continue to participate in a high-deductible health plan for the rest of the year and the entire following year. During this time, you cannot have other health care coverage that would make you ineligible to contribute to an HSA.
Withdrawals after age 65 or if disabled. After you turn 65 or enroll in Medicare, you may withdraw money from your HSA for non-medical purposes. Withdrawals are not subject to the 20% penalty, but are treated as retirement income subject to normal income tax. The same holds true if you become disabled before age 65; withdrawals are not subject to the tax penalty, but are treated as taxable income.

For additional information about HSAs and tax rules, see IRS Publication 969.