Health Savings Account (HSA)


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HEALTH SAVINGS ACCOUNT

A Health Savings Account (HSA) is a tax-advantaged savings account available to you when you enroll in our Qualified High Deductible Health Plans, Plan C or Plan N. You may use the money in your account to pay for eligible health expenses for you and your tax qualified dependents. Your HSA is your account, and always portable, even if you retire or stop working for the State of Kansas, or your employer.

Eligibility to Contribute to an HSA
The IRS sets the guidelines outlining your eligibility to enroll and contribute to an HSA. These rules apply only to you as the employee and not to any covered family members. For you to qualify for an HSA, you must meet ALL the following:

  • You must enroll in Plan C or N.
  • You cannot be enrolled in Medicare A or B, Medicaid or TRICARE.
  • You cannot be claimed as a dependent on another person’s tax return.
  • You cannot be enrolled in other non-qualifying coverage.

Plan C requires an employee contribution of $25 per pay period ($50 per month) to receive the employer contributions to your HSA. Plan N does not require any contribution from you, the employee, to receive the employer contributions. The employer contribution amounts are outlined for you on the following page. Your employee contributions are made to your HSA on a pre-tax basis, and when you use the funds for eligible expenses, the amount you spend is not taxable.

The IRS sets maximum limits each year for total contributions to your HSA. These maximums include your contributions AND the employer contributions. SEHP members age 55 and over are also allowed to make additional “catch-up” contributions to their HSA above the IRS maximum. The “catch-up” contribution maximum is $1,000 each year. Once you enroll in Medicare, you may no longer contribute to an HSA.
For additional information visit http://www.kdheks.gov/hcf/sehp/HSA_NueSynergy.htm.

HSA Rules for Dependents Under Age 26

While the Patient Protection and Affordable Care Act of 2010 (PPACA) allows parents to cover their dependent children (up to age 26) on their health plans, the IRS has not changed its definition of an eligible dependent for using HSA funds. This means that a person could have their 25-year-old dependent child covered on Plan C or N but are not able to use funds from their HSA to pay for medical expenses for that 25-year-old dependent. HSA funds used in violation of this rule will be taxable and could be subject to penalties. For all HSA plans, the IRS definition of an eligible dependent is one the HSA account holder is able to "claim" the child/relative as a dependent on their tax return. If the HSA account owner cannot claim the dependent on their tax return, they are not allowed to spend HSA dollars on services provided to that child/relative. The IRS defines a qualifying dependent child as follows:

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

 

Health Savings Account
  Full-Time Employee Part Time-Employee
  Employee Only Employee/ Spouse and Family Employee/ Child(ren) Employee Only Employee/ Spouse and Family Employee/ Child(ren)
IRS Maximum Total $3,550 $7,100 $7,100 $3,550 $7,100 $7,100
Plan C Employer Contribution $250 per quarter

$1,000.00 year
$312.50 per quarter

$1,250.00 year
$437.50 per quarter

$1,750.00 year
$156.30 per quarter

$625.20 year
$171.90 per quarter

$687.60 year
$296.90 per quarter

$1,187.60 year
Plan N Employer Contribution $125 per quarter

$500.00 year
$156.25 per quarter

$625.00 year
$218.75 per quarter

$875.00 year
$78.15 per quarter

$312.60 year
$85.95 per quarter

$343.80 year
$148.45 per quarter

$593.80 year

 

Health Savings Account
    Full-Time Employee Part Time-Employee
Plan   Employee Only Employe/ Spouse and Family Employee Child(ren) Employee Only Employe/ Spouse and Family Employee Child(ren)
  IRS
Maximum Total
$3,550 $7,100 $7,100 $3,550 $7,100 $7,100
PLAN C Employee Bi- Weekly Payroll Deductions $25 to
$85.41
$25 to
$202.08
$25 to
$202.08
$25 to
$101.03
$25 to
$225.51
$25 to
$225.51
PLAN C Regent Academic Year Employee Payroll Deductions $25 to
$113.88
$25 to
$269.44
$25 to
$269.44
$25 to
$134.71
$25 to
$300.68
$25 to
$300.68
PLAN N Employee Bi- Weekly Payroll Deductions $0 to
$106.25
$0 to
$228.12
$0 to
$238.54
$0 to
$114.05
$0 to
$239.84
$0 to
$250.25
PLAN N Regent Academic Year Employee Payroll Deductions $0 to
$141.66
$0 to
$304.16
$0 to
$318.05
$0 to
$152.07
$0 to
$319.78
$0 to
$333.67

When choosing your HSA payroll deduction amount, remember, as you earn HealthQuest reward dollars, they will be deposited to your HSA. HealthQuest rewards can be earned up to $500 each year for employee, and up to $500 each year for the spouse, for a possible total of $1,000. These dollars count toward the annual maximum contributions to your HSA. To receive HealthQuest dollars you must have an active paycheck.
Important: You are responsible to ensure your HSA contributions do not exceed the maximum each year. Amounts in excess of the maximum limit will be subject to IRS penalties and additional taxes. You may make adjustments to your HSA employee contributions at any time during the year by submitting a request to change your contribution amount in your Membership Administration Portal (MAP) account. State Employees: Employer contributions are made to your account quarterly.
Non State Employees: Employer contributions are made monthly.
State and Non State New Employees: Employer contributions begin the calendar quarter following the benefit effective date of your coverage.