Health Savings Account (HSA)
What is an HSA?
- The HSA consists of a FDIC insured, interest-bearing bank account, and an investment account. An HSA works in conjunction with a lower cost High Deductible HSA compatible Health Plan. You can use your HSA to pay for current and future qualified medical expenses tax free.
Who is eligible for an HSA?
- You must be enrolled in the County's High Deductible HSA-compatible Health Plan and cannot be covered by another medical plan. You also cannot be enrolled in Medicare, be a dependent on another person's tax return, or have received VA medical benefits at any time over the past three months.
What is a High Deductible HSA-compatible Health Plan?
- A High Deductible HSA-compatible Health Plan is a lower cost medical insurance plan with a deductible of $1,400 for individuals or $2,800 for families.
What are the tax benefits associated with an HSA?
- The money you contribute to your HSA is federal income tax-free and can be used to pay for qualified medical expenses for you, your spouse, and tax dependents. You can maximize your tax savings by contributing up to the maximum annual amount allowed by the Internal Revenue Service (IRS). The 2021 maximum amount allowed is $3,600 for single coverage and $7,200 for family coverage. If you are 55 or older, you can make an additional $1,000 catch-up contribution. Your HSA balance plus investment earnings carry over from year to year tax-free.
What does the HSA offer?
- As a subsidiary of United Health Group, Optum Bank is the provider of your HSA and is one of the nation’s leading providers of healthcare saving and spending accounts. They work with you now and over time to achieve your healthcare savings goals. The HSA offers the tools and resources you need to manage your account and get the most out of your HSA. From convenient Mastercard HSA debit card access to dedicated HSA Customer Service representatives, Optum Bank makes it easy for you to use your HSA and get answers to your questions.
What are the advantages of the Mastercard HSA debit card?
- With a swipe of your HSA debit card, you can pay for prescriptions, doctor's visits, dental expenses, vision expenses, and more. You can use the HSA debit card anywhere Mastercard and debit cards are accepted.
What fees apply to the HSA?
- There is a monthly account service fee of $2.65 per month. Additional banking fees may apply if you choose to use optional banking services or choose other non-standard services. The monthly service fee will be waived if the combined deposit and investment balance in your HSA on the last day of the month is greater than or equal to $2,500.
How are contributions made to my HSA?
- Employer - The County will contribute to your HSA account. For individuals you will receive $1,250 and for families $2,100 per calendar year. The County will deposit half in January and the other half semi-monthly beginning with the first paycheck in July.
Employee - There are several ways to contribute to your HSA account:
- Payroll Deduction - Payroll deduction contributions are taken out of your paycheck federal income tax-free and deposited into your HSA. To make payroll deduction contributions, complete an HSA Payroll Deduction Contribution form and send to County Benefits. This form is located on the Forms and Documents web page.
- Electronic Deposits - You can choose to contribute outside of payroll by visiting optumbank.com and making a deposit by transferring money from another bank account. Once you’ve logged into your account, simply click on “Make a Deposit” in the “I want to” section of the page.
- Check - Mail a check along with a Contribution/Deposit form, available online at optumbank.com through the Help & Tools tab, Forms & Documents.
- Transfer or Roll Over Funds – If you already have an HSA, you can roll over or transfer funds from that account into your Optum Bank Account. Some restrictions apply. Find more information and a HSA Rollover/Transfer Request form at Optum Bank.
- Maximum Limits - Regardless of how you contribute, it’s important not to exceed the maximum annual contribution limit set by the IRS. If you have questions on how this limit applies to you, please consult your tax advisor.
Click on the links below for additional information on HSAs
Optum Bank Customer Service - 844-326-7967