Health Savings Accounts
Eligibility for an HSA
To be eligible to contribute to an HSA, you must meet IRS guidelines. In general, the IRS eligibility rules surrounding HSAs include the following:
- You must be enrolled in a qualified High Deductible Health Plan; the BCBS Consumer Choice HSA plan qualifies as a High Deductible Health plan under this rule;
- You cannnot be covered by any other health insurance that reimburses for health expenses, unless it is another HSA-qualified HDHP. Employees with coverage under two HSA-qualified HDHPs do not get to double their HSA contribution;
- Enrollment in other traditional Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) may make you ineligible for an HSA;
- Employees who are enrolled in Medicare or Medicaid cannot open an HSA.
For complete information about eligiblity, please visit the IRS website at http://www.irs.gov/publications/p969/ar02.html.
The amount you are eligible to contribute to an HSA is determined by:
- The number of months you are covered under the High Deductible Health Plan and by the type of coverage you have on December 1st; and
- The maximum amount allowed by the IRS; in 2018 the maximums are $3,450 (or $3,025 net of employer match) for employee only coverage and $6,900 (or $6,000 net of employer match) for Family coverage. Individuals age 55 and older can make additional “catch-up” contribution of $1,000. The employer matching contribution made on your behalf will be included in these limits.
If you enroll in the BCBS Consumer Choice HSA High Deductible Health Plan and contribute to an HSA, you are not allowed to contribute to the Health Care Flexible Spending Account (FSA). You may contribute to the Limited Purpose Flexible Spending Account for Dental and Vision expenses only.
Eligible Medical Expenses
You may use your HSA to cover qualified eligible out-of-pocket healthcare expenses. Qualified eligible medical expenses generally include out of pocket expenses for medically necessary health services and supplies and also include medical, dental & vision deductibles, co-pays & co-insurance. Detailed information regarding qualified health expenses may be found in IRS Publication 502 available on the IRS website at http://www.irs.gov/pub/irs-pdf/p502.pdf.
Over-the-counter medications are not eligible for reimbursement unless you have a prescription from your doctor. You are responsible for making sure your expenses meet the IRS definition of “qualified” expenses.
If you have questions regarding Eligible Medical Expenses, please contact Human Resources or see your tax advisor. You are responsible for ensuring purchases made with your HSA card are qualified eligible medical purchase or are reimbursable towards a prior qualified eligible medical purchase. Make sure to keep your receipts and withdrawal slips as documentation.
Advantages of an HSA
NO “Use it or Lose it”: Your HSA rolls over from year to year. You may continue to contribute to the account as long as you are enrolled in the High Deductible Health Plan. If you change medical plans or lose coverage, you may no longer contribute to the account, but you are able to continue using the savings to pay for out-of-pocket medical expenses.
Flexibility: You can use the savings in the account to pay for current out-of-pocket medical expenses. If you don’t need the savings to pay for current medical expenses, you can save money for future medical needs.
Tax Savings: If you enroll in the HSA through payroll deduction, the contributions are made pre-tax. If you make your contribution after-tax, you can deduct your contribution as an “above-the-line” deduction on your tax form to reduce your taxable income.
Optum Bank Health Savings Account
Your 2017 HSA will be with Optum Bank. When you elect to contribute to the HSA, your demographic information will be electronically transmitted to Optum Bank. Optum Bank will then set-up your account. You will need to activate your Optum Bank MasterCard and also register on the Optum Bank website (https://cdhaccount.optum.com) to accept the terms and conditions of the account. Once you have done both steps, you will be able to access your HSA funds as they are deposited.
2017 Employer Matching Contribution
In 2017, employees enrolled in the HDHP will receive an employer matching contribution into their HSA. The employer matching contribution will match your HSA contribution dollar for dollar each payroll up to the employer matching contribution limit of $375 for single coverage and $750 for family coverage.
What do I need to do with my Credit Union of Georgia HSA from 2013 and prior?
The Benefits Department wants to make you aware of your options regarding any balance that you may have in your Health Savings Account (HSA) with Credit Union of Georgia (CUofGA).
- Leave your funds with CUofGA and continue to use the account for qualifying expenses until the account is exhausted
- Rollover a portion of your CUofGA balance to your Optum Bank HSA
- Rollover the entire balance of your CUofGA HSA to your Optum Bank HSA
Items to consider -
- CUofGA does NOT charge a monthly account maintenance fee
- Optum Bank charges a monthly account maintenance fee of $1.50, which is paid by the BoR in 2014 & 2015. (waived if average daily balance exceeds $2,500)
- If your HDHP coverage (BCBS Consumer Choice HSA) status or employment status changes, a monthly maintenance fee of $3.25 may be charged against your Optum Bank HSA.
If you would like to rollover funds from your CUofGA HSA to your Optum Bank HSA, you will need to complete the Optum Bank Rollover Request form and take it to CUofGA.
- USG Health Savings Account At-A-Glance
- Optum Bank --> login to your account and click on the 'Tools & Support' tab to request additional debit cards, request a rollover, assign a beneficiary, online bill pay and FAQ's!
- IRS Publication 502 - Medical and Dental Expenses
- IRS Publication 969 - Health Savings Accounts and Other Tax-Favored Health Plans
- IRS 90% Merchant List - List of merchants where payment card can be used. These merchants have at least 90% of gross sales from prescriptions/Rx or qualified over-the-counter healthcare products.