Health Savings Account (HSA)


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PLAN YEAR 2017 HEALTH SAVINGS ACCOUNT CHART

PLAN YEAR 2017  HEALTH SAVINGS ACCOUNT CHART

Through the HSA, you can set aside pre-tax money to pay for eligible health care expenses.  Examples of the types of medical expenses that you can spend your HSA funds for include:

  • Deductibles and Coinsurance
  • Dental, Drug and Vision expenses 

Over-the-counter medications, such as aspirin, cold medicines, antacids and cough supplements if you have a prescription from your doctor.

Both you and your employer contribute money to the Health Savings Account (HSA).  The maximum annual contribution to an HSA for 2017 is $3,400 for single coverage and $6,750 for dependent coverage.   These maximums apply to the sum of your own contributions and your employer’s contributions, so the maximum annual contribution for full time employees in 2017 is $2,400 for single coverage and $5,000 for Employee/Children coverage and $5,500 for Employee/Spouse or Family coverage.  Members ages 55+ can make additional “catch up” contributions to their HSA each year until they enroll in Medicare.   The additional catch-up contribution for 2017 remains at $1,000.  Employees may elect to make changes to their HSA contributions during the calendar year.  If no HSA contribution level is selected during Open Enrollment, the contribution amount will default to $25 per pay period.

Your HSA belongs to you and is “portable” which means that even if you leave your employer, you take your account with you and can use it to pay for eligible medical expenses for you and your tax qualified dependents. Since the account belongs to you,  you are responsible for the account investments and fees, so be sure to review the HSA investment options and account fees that apply.

IRS Health Savings Account Eligibility Requirements

Documents

Samples of Non Response Notices

HSA Rules for Dependents Under Age 26

While the Patient Protection and Affordable Care Act of 2010 (PPACA) allows parents to add their dependent children (up to age 26) to their health plans, the IRS has not changed its definition of a dependent for health savings accounts. This means that a person could have their 25-year-old child covered on their HSA -qualified high-deductible health plan, but not be eligible to use their HSA funds to pay for medical bills for that 25-year-old. Reimbursements issued in violation of this rule will be taxed and could be subject to the 20% HSA penalty for an early withdrawal. For all HSA plans, group or individual, the IRS definition of a dependent is used when determining whether a dependent qualifies and how benefits are administered for dependents. The account holder must be able to "claim" the child/relative as a dependent on their tax return, and if they cannot, they are not allowed to spend HSA dollars on services provided to that child/relative. The IRS defines a qualifying child dependent as follows:

  • Daughter, son, stepchild, sibling or stepsibling (or any descendant of these)
  • Has same principal place of abode for more than one-half of taxable year
  • AND not yet age 19 (not yet age 24 if student)
  • OR permanently and totally disabled.

IMPORTANT - You are NOT eligible for Plan C with a Health Savings Account (HSA) if any of the following IRS Guidelines apply to you:

  • You are enrolled in Medicare.
  • You are covered by another health plan that is not a Qualified High Deductible Health Plan.
  • You are enrolled in the standard Health Care Flexible Spending Account (HCFSA). For those currently enrolled in a HCFSA with a grace period, like the one offered to State employees, you may enroll in and start contributions to the HSA effective January 1, 2015 if there is a zero balance in your HCFSA account as of December 31, 2014. If there is a balance in your HCFSA, you may enroll in Plan C effective January 1, 2015, but no contributions will be made to your HSA until the 1st of the month following the completion of the plan’s FSA grace period.
  • You are covered by TRICARE and TRICARE for Life.
  • You are covered by Veterans Administration (VA) benefits and have used the VA medical services within the three-month period immediately preceding your enrollment in Plan C (excluding check- ups and immunizations).

Resources for more HSA Information:

IRS Links