How does it work?

Health Savings Accounts (HSAs) combine a High Deductible Health insurance Plan (HDHP) with a tax-exempt trust or custodial account to pay for qualified medical expenses. The HSA is an individual health account that is owned by the employee and may be used for the payment of medical expenses that are not covered by their HDHP, including expenses that go towards satisfying the deductible. Individuals or employers may contribute on a pre-tax or post-tax basis. Pre-tax funds used for eligible healthcare expenses are tax-free to the account holder.

An HSA is similar to an Individual Retirement Account (IRA) in that the participant owns it and directs the investments. Balances in the HSA continue to accumulate in the account. Funding options include pre-tax contributions via payroll deduction or post-tax contributions via check or electronic funds transfer. The HSA must be combined with an HDHP, which covers serious illness or injury, while the HSA can pay for medical expenses until the deductibles are met.


When participants enroll, an account will be created for them at Avidia Bank. They’ll be given access to a secure, easy-to-use web portal where the can track account balances, view investment accounts and submit requests for reimbursements. The employer and participant can deposit money into the participant’s HSA account up to an annual per person or family limit set by the IRS. The HSA account can then be used to pay for expenses that are considered medically necessary. For a list of approved items or services, check out our Eligible Expense List.

In addition to the great tax-savings that a HSA provides, participants will also receive a Navia Benefits Card to give them easy access to their HSA funds. The Navia Benefits Card contains the value of their HSA account, and can be used to pay for qualified medical expenses. When the Navia Benefits Card is used, the cost of the eligible expenses will be automatically deducted from the account. Just swipe and go. It’s that easy!

Plan Highlights

Offering an HSA as part of your benefits strategy gives employees access to a valuable long-term tax-advantaged benefit. HSAs offer unique advantages over other tax-advantaged accounts.

  • Triple Tax-AdvantagedContributions are tax-free, gains on invested funds accumulate tax-free, and distributions are tax-free when used to pay for qualified medical expenses. HSAs are the most tax-advantaged account in the marketplace today.
  • FlexibleFunds can be used for non-medical expenses but they are subject to a 20% penalty, except when an individual is 65 or older, disabled or died during the year. At age 65, HSA funds can be withdrawn for non-medical reasons without penalty; ordinary income tax will be charged on the money withdrawn for non-medical reasons.
  • Portable The remaining balance rolls over from year to year with no “use-it or lose-it” requirement; accounts move with employees even if they change employment or retire.
  • A Solution for Future Health Expenses Unused contributions accumulate and can be saved and used for future medical expenses. For example, unused funds can be used to pay Medicare premiums in retirement or premiums for Long Term Care insurance.

Participant Features

Your employees will have access to the top tools and resources available without any additional costs. The services listed below are included for your participants as part of our standard administration:

  • The Navia Benefits Debit Card
  • Mobile Pay
  • Online Account Access
  • Online bill pay from the HSA to any merchant
  • HSA checkbook
  • Investment platform access
  • Annual tax forms for filing purposes
  • Account transfers

Employer Features

Our HSA platform combines the convenience of a robust online banking environment with a single-solution debit card that is used for all of our services. Our cutting-edge platform includes the following:

  • Customized Enrollment Materials
  • Online enrollment throughout the year for HSA eligible employees
  • Online Account Access and Eligibility reporting
  • Dedicated Account Team
  • Employer contribution allocation
  • Integration with Payroll and HRIS systems
  • Plan Document & SPD Preparation
  • Secure file uploads for HSA contributions
  • Zero-fee HSA when the employee terminates
  • Compliance Support Services

Single Card Solution

Planning on offering a Limited FSA or Commuter Benefits to your employees now or in the future? Those benefits, along with our HSA benefit, are part of our single card solution suite of benefits. These benefits are consolidated onto a single debit card that will recognize the expense type and allocate funds from the appropriate benefit!

Interested in learning more?

Contact our sales team at 425.452.3498 or