Frequently Asked Questions

The Blue Cross^® Blue Shield^® of Arizona (AZ Blue) HDHP was specifically created to give State of Arizona employees more control over their healthcare dollars as well as a plan option with lower premiums.

This HDHP is designed to deliver key benefits while offering:

• Lower Monthly Premiums
• Health Savings Account (HSA)
• HSA Tax Advantages
• Pre-tax contributions
• Tax-free interest earnings
• Tax-free withdrawals on qualified expenses*

With an HDHP you’ll see lower monthly premiums but will have a higher annual deductible. A deductible is the portion you pay out of pocket before your insurance benefits kick in. To offset that higher deductible, you can open a tax-exempt health savings account (HSA) that is funded by you and your employer. Think of it like a 401(k) for your health. You have the option to then use those tax-free dollars on qualified expenses like doctor visits, vision and dental services, MRIs, and prescriptions. All qualified expenses go toward helping you meet your deductible. You can also use your HSA for unqualified expenses. However, those transactions are taxed and carry a withdrawal penalty.

With an HDHP, you’ll need to meet your annual deductible before the coinsurance benefit kicks-in. After your deductible is met the plan pays 90% of eligible expenses; you pay 10%. This means when you receive services, your cost-share will be more until your deductible has been met. The HSA account is designed to help you offset those costs. All eligible healthcare expense—from doctor visits, urgent care visits, hospitalizations and prescriptions accumulate towards your deductible and out-of-pocket maximum.

	HDHP option
	In-network
Deductible (Single/Family) Type of Deductible	$1,700/$3,400 Combined Medical/Rx deductible
OOP Maximums (Single/Family) (includes deductible and coinsurance)	$3,500/$7,000 Combined Medical/Rx OOP Max

Having an HSA, like the one available with your plan, can not only help you prepare for current and future health expenses, it can also help you save on taxes in three ways: The account can be funded through pre-tax contributions by you and your employer, which can help bring down your yearly tax burden. Any interest you earn in your HSA grows tax free. And withdrawals for qualified expenses such as doctor visits, vision and dental services, MRIs, and prescriptions are also tax exempt.

Unlike other health accounts, there is no “use it or lose it” with an HSA. The balance of your HSA rolls over year after year, allowing you to build reserves that can help with future healthcare needs or even be used in retirement. The funds in your HSA are yours to use even if you switch jobs or retire.

Although doing so is not recommended, HSAs can be used for unqualified expenses. If you do make any unqualified withdrawals, they are subject to applicable taxes and penalties.

An HSA is designed to pay for all kinds of healthcare needs—everything from regular doctor visits, vision and dental services, diabetes medication and prescriptions to specialty care and even acupuncture. Your HSA can be used tax free to pay for out-of-pocket qualified medical expenses—even if they’re not covered by your HDHP. This includes expenses for you, your spouse, and any dependents you claim on your tax returns. You can find a detailed list of qualified medical expenses at www.irs.gov.

It depends. The rule states that if you claim a family member as a dependent, then you can use your HSA for their qualified medical expenses.

This is the amount you pay for healthcare services before your health insurance begins to pay. You don’t need to pay a deductible for covered preventive care services if they are received in-network.

No. When you use network providers you will pay the discounted amount of services (we call this “Allowed Amount”) until you reach your deductible. You can use your HSA to help pay for services, or you can save those funds to use later.

The percentage you pay for the cost of covered health expenses after meeting your deductible. For example, you pay 10% of the cost of a covered service and your health plan would pay the other 90%.

The out-of-pocket limit is the most you have to pay for covered services in a plan year. If your deductible and coinsurance payments reach the out-of-pocket limit, your plan will pay 100% of covered services for the rest of the year.

Yes, you can see any doctor you want. You are encouraged to use healthcare providers in the network because they’ve agreed to charge lower prices. For example, when you use a network doctor, you’ll usually pay less compared to one who is not in the network.

No. You have the freedom to use any doctor or hospital without being required to choose a primary care physician (PCP) or get referrals.

Yes, emergency room and urgent care services are covered after you meet the deductible.

Yes, adult children are eligible for coverage under the plan up to age 26.

To deposit money into an HSA, you must be enrolled in an HSA-eligible health plan. You are eligible if:

• You are covered under an eligible high-deductible health plan (HDHP)
• You are covered by no other health coverage, unless it is permissible coverage
• You are not enrolled in Medicare
• You cannot be claimed as a dependent on someone else’s tax return
• Some other restrictions apply

Please talk to a tax, benefits, or financial advisor if you have more questions.

No. All of the money in your healthcare FSA must be spent before you can open an HSA. This rule does not apply to Limited FSA accounts. Please consult with your ADOA Human Resource contact on any questions about Limited FSA eligibility and options.

Yes. If a spouse will be or is already covered by Medicare, you can sign up for this plan and open and contribute to an HSA. If you file taxes jointly with your spouse, you can use your HSA to help pay for your spouse’s qualified expenses, such as Medicare Advantage premiums. However, you cannot use HSA funds to pay for Medicare Supplement premiums.

Examples of expenses that do not qualify include cosmetic surgery, health club memberships, teeth whitening, and over-the-counter medicines purchased without a prescription. If you use an HSA to pay for an expense that is not qualified, you will have to pay taxes on the expense and may also have to pay a 20% penalty on the amount spent.

Yes. The IRS limits how much you (and others) can put into an HSA each year. The 2026 limits are:

• $4,400 for individual coverage
• $8,550 for family coverage

If you are 55 or older, you can deposit an extra $1,000 during the year. This is called a catch-up contribution. Any contributions above these limits are subject to income taxes and a penalty.

The money in your HSA is yours to keep. If you leave your company, change health plans, or retire, you take your HSA with you. If you switch to a health plan that makes you ineligible to continue depositing money in an HSA, you may continue to use the money in your account for qualified medical expenses, but you can no longer make deposits.

Yes. But the IRS says the two of you together can only contribute up to the family limit. Both of you can contribute to just one of your HSAs, or you can contribute to both HSAs as long as the total amount doesn’t go above the annual family limit.

Log in to your member account at azblue.com/member, click Find Care, and use the Costs for Procedures tool to get estimates on various treatments such as eye exams, mental health services, and more.

If you receive a bill from your doctor or if you are paying for a prescription, you can pay from your HSA using your HSA debit card or checks provided by Inspira Financial^®.

Yes, as long as the service is a qualified expense. You can take money out of your HSA to pay yourself back with no penalty.

After you turn 65 or start receiving Medicare benefits, you may withdraw money from your HSA for medical and non-medical purposes without penalty. When your Medicare coverage starts, you can use your HSA to pay your Medicare Advantage premiums, deductibles, and copayments.

If your domestic partner meets the IRS qualifications of a tax dependent, you can use your HSA to help pay their qualified expenses. If your partner is not a tax dependent, you can still cover your partner under your plan. However, your partner would need to open and fund their own HSA to pay for the expenses.

No. If you are enrolled in a healthcare FSA, the IRS will not allow you to open an HSA. But the law does permit you to enroll in a limited-purpose FSA if it is offered to you. A limited-purpose FSA can only be used to pay for eligible dental and vision expenses.

No. All of the money in your healthcare FSA must be spent before you can open an HSA.