Save for Health Costs with an HSA
A Health Savings Account helps you save for health care with tax breaks. Here is how it works with the high-deductible plan and how to get the most from it.
What an HSA is
November 9, 2026 – November 20, 2026
A Health Savings Account (HSA) is a personal savings account for health care costs. You can use one if you enroll in the PPO HDHP 2500 plan. HDHP stands for high-deductible health plan. That means you pay more out of pocket before the plan starts to share costs.
The HSA helps you cover that gap. In general, the money you put in, the growth on it, and the money you spend on qualified health costs are all free from federal income tax.
How to put money in
You may be able to set aside money from your paycheck before taxes. You choose how much to save. Some people also add money to the account on their own.
The IRS sets a limit each year on how much can go into an HSA. The limit is higher if you cover family members. Check the Benefits Guide to see how HSA contributions work at Cadence and to find the current limits.
What you can spend it on
You can use HSA money for qualified medical expenses for you, your spouse and your tax dependents. Common examples are deductibles, copays, prescriptions, dental care and eye exams. Spending it on other things usually means paying taxes, plus a penalty if you are under 65.
Your money rolls over every year. There is no use-it-or-lose-it rule. The account belongs to you, even if you change plans or leave Cadence.
Common HSA questions
Who can put money into an HSA?
You must be enrolled in an HSA-qualified high-deductible plan, such as the PPO HDHP 2500. In general, you also can't have other health coverage that isn't a high-deductible plan, be enrolled in Medicare, or be claimed as a dependent on someone else's tax return.
What happens to my HSA money at the end of the year?
It stays in your account. Unused money rolls over from year to year, so you can keep saving for future health costs.
Can I use my HSA for my family's health costs?
Yes. You can use it for qualified medical expenses for yourself, your spouse and your tax dependents.
What if I switch to a different medical plan later?
You keep the money already in your HSA and can still spend it on qualified costs. But you can only add new money while you are in an HSA-qualified high-deductible plan. You can change plans during open enrollment each year or within 30 days of a qualifying life event.
Should I keep my receipts?
Yes. Save receipts for anything you pay for with your HSA. You may need them to show that an expense was qualified if the IRS ever asks.
Where can I find more details?
Read the Benefits Guide and the PPO HDHP 2500 Summary of Benefits and Coverage (SBC) in the Document Library. You can also ask the site's AI assistant or contact Human Resources.
Ready to choose your medical plan?
Log in to Employee Navigator to pick your plan during open enrollment each year, your new-hire window, or after a qualifying life event.