Health Savings Account (HSA)

How the Health Savings Account Works with the Basic HSA and Advantage HSA Medical Plans

At Zebra, we understand that it’s good to have choices. That’s why we offer two medical plans through BCBS—Basic HSA and Advantage HSA—that give you high-quality medical options with more control over how you pay for healthcare. They are consumer-driven health plans paired with a Health Savings Account (HSA).

• The HSA medical plans share many of the features of the BCBS PPO Plan, including the same PPO network of doctors and hospitals. Benefits are higher in-network versus out-of-network and you still have an out-of-pocket maximum to protect you from the expense of catastrophic illness or injury.
• When you enroll in an HSA medical plan, an HSA will be opened for you through HSA Bank. They will send you instructions for activating your HSA. The HSA allows you to contribute before-tax money to pay for eligible out-of-pocket healthcare expenses.
• You can use funds in your HSA to pay for out-of-pocket healthcare expenses incurred after the date your individual HSA is established. Unused HSA funds roll over year to year—there is no “use it or lose it” requirement. You may also use your HSA to pay for out-of-pocket dental and vision expenses.
• You decide when to withdraw money from your HSA to reimburse yourself for qualified healthcare expenses. You either request reimbursement from your account or use a debit card to pay for expenses. You have the option of paying for services out-of-pocket until you reach your deductible and/or out-of-pocket maximum. This will allow your HSA balance to grow and earn interest for future qualified expenses.

How an HSA Works

HSAs are intended specifically to pay for healthcare expenses. When you save through an HSA:

• Your contributions are tax-free at the federal level.
• Interest and any investment earnings grow tax-free over time.
• Your money is tax-free when you take it out, as long as you use it for eligible healthcare (including dental and vision) expenses.
• Your account is fully portable, which means you can take your money (your contributions plus any Zebra contributions) with you if you leave the company. You may also choose to leave your money at HSA Bank if you leave the company. However, you will be responsible for any banking fees related to keeping your HSA with HSA Bank.
• Once you reach age 65, your funds can be withdrawn for any reason without penalty.
• If you elect the Advantage HSA medical plan during enrollment, Zebra will make a contribution to your account based on your hire date:
  • January 1 – June 30: $500 for Employee Only coverage, $1,000 for all other coverage tiers.
  • July 1 – December 31: $250 for Employee Only coverage, $500 for all other coverage tiers.
• Zebra’s contribution is tax-free at the federal level.

Zebra’s HSA administrator, HSA Bank, will provide you with a debit card to use when you need to pay for qualified healthcare expenses. For a complete list of eligible healthcare expenses, see IRS Publication 502 at www.irs.gov.

HSA Contribution Limits

If you elect the Basic HSA medical plan, you may contribute to your HSA up to the IRS limits. For 2025, the limits are $4,300 for Employee Only coverage and $8,550 for all other coverage tiers.

If you elect the Advantage HSA medical plan, the current IRS limits for HSA contributions are listed below.

For both plans, you can also make additional “catch-up” contributions to your HSA of up to $1,000 annually if you are age 55 or older. Catch-up contributions can begin the year in which you turn age 55.

HSA Eligibility

To open an HSA, you must meet the following requirements:

• You must be enrolled in the Advantage HSA Plan or Basic HSA Plan.
• You cannot be covered by a non-HSA-compatible medical plan (for example, you cannot be covered as a dependent under anyone else’s traditional PPO plan, except for vision and dental coverage).
• You cannot be enrolled in Medicare.
• You cannot be claimed as a dependent on another person’s tax return (except as a spouse).
• You cannot be a participant in a general-purpose healthcare FSA.

HSA Bank Debit Card

Once you enroll in either the Basic or Advantage HSA medical plan, HSA Bank will send you some information about your account, including a debit card that can be used for eligible expenses at the point of service. Please make sure to follow the instructions included in the mailing on how to activate your account.