is a Health Savings Account (HSA), paired with a High Deductible Health Plan?
A Health Savings Account is an account that allows
you to accumulate funds deposited by RCPS on your behalf, as well as your own
pre-tax contributions, to cover healthcare expenses toward your deductible. You must be enrolled in UnitedHealthcare’s High Deductible Health Plan (HDHP).
Again for Open Enrollment 2017!
- FIRST TIME enrollees (during
Open Enrollment), in the HDHP with HSA plan:
have one-half of the annual premium
credit deposited in the employee’s Health Savings Account no later than 1/6/17
provided that the account is open to receive the deposit. An employee must open an account by 12/16/16. If
the account is not open and available for deposit, the employee will not receive one-half of the
annual premium credit, but will instead receive per pay period deposits.
will be no additional contributions to the account by RCPS until the payroll of
6/15/17, at which time the regular
semi-monthly contributions will begin.
an employee leaves his/her covered position with RCPS prior to the 6/15/17
paycheck, his/her final paycheck(s) will be debited the prorated amount
owed. If there are not enough funds in
the final paycheck(s), the employee will be billed any amount owed to the
to open a Health Savings Account, HSA
If you choose the HDHP with HSA during Open
Enrollment, open your account by 12/16/16. If you are a new hire or if you choose the
HDHP with HSA due to a Qualifying Event (QE), please establish an HSA bank
account as soon as possible, but no later than within 31 days of your
date of hire or QE. Please go to the Optum Bank website: http://www.optumbank.com/
Select “Enroll Now” and Click on “Open An HSA”, Click “Continue”. When
asked for “Employer or Financial Advisor Number”, enter our group number:
HDHP Effective date: 1/1/17 for Open Enrollment. If you are a new hire or this is due
to a QE, the effective date is the first of the month following your
date of hire or the first of the month following the date of the QE.
You will receive a letter from Optum Bank with your card or a
letter requesting additional information from you if needed. If asked for
additional information, please respond to Optum as soon as possible.
- If you wish to contribute
additional money to your HSA account pre-tax, you must complete a new application
each year and submit it to Payroll. Go
to the RCPS Intranet website, Human Resources Intranet page,
"Forms - Benefits” link, and print an HSA contribution form. Complete and submit this form to
payroll. You can change the per
pay period contribution to your account anytime throughout the year.
You must not exceed the IRS maximum contribution each year which includes
both employee and employer contributions made on your behalf. 2017 IRS maximum for individual $3,400
and for family $6,750. HSA catch up (for age 55 and older) $1,000.
- Account Portability: Unused account
dollars are yours to keep even if you retire or leave the company.
- Healthcare dollars can grow over time: You can also invest your HSA dollars in
- HSA dollars can be used for future eligible expenses such as medical,
dental or vision expenses.
HSA Eligible expenses
The products and services listed below are examples
of eligible expenses for payment under your HSA, to the extent that such
services are not covered by your medical, vision and dental insurance plans.
This list is not all-inclusive; additional expenses may qualify, and the items
listed below are subject to change in accordance with IRS regulations. Please
refer to IRS Publication 502 to verify that your expense is eligible.
Artificial limbs & teeth
Blood pressure monitoring devices
Body scans (MRI, CAT scan)
Breast reconstruction surgery following mastectomy
Co-insurance amounts and deductibles
Contact lenses – also materials & equipment
Dental procedures, non-cosmetic
Dentures and denture adhesives
Drug addiction treatment
Eyeglasses-prescription sunglasses/safety glasses
Fluoridation device or services
Gambling problem treatment
Home Health Care
Individual counseling (to alleviate or prevent a
physical or mental defect or illness)
Long Term Care Premiums
Laser eye surgery/Lasik
Medical Alert necklace or bracelet
Medical Records charges
Mental health treatment facility
Nursing services provided by a nurse or attendant
Occlusal guard to prevent teeth grinding
Personal trainer fees
Prescription drugs (prescription drugs imported
from another country are not covered)
Weight loss program/
drugs – if prescribed by a physician
Preventive care screenings
Sleep deprivation treatment
Smoking cessation programs and medications
Taxes on medical services and products
Transportation expenses for person to receive
tax provisions and eligibility requirements
- Contributions to your HSA account
are made pre-tax and withdrawals from your account for eligible medical
expenses are tax free.
- Earnings on the account are
not taxed and there is no lifetime maximum accumulation of your HSA
- Withdrawals for reasons
other than eligible medical expenses taken before age 65 are subject to
additional 20% penalty but there is no distribution required at age 70 ½.
- HSA account holder must not be covered by any other health plan
(i.e. Medicare, Tricare, Group, and Individual).
- Cannot be covered by a
spousal medical FSA and cannot be claimed as a dependent on another
person’s tax return.
Purpose Health Flexible Spending Account (FSA)
- You may only enroll in a Limited
Purpose Health FSA. With the Limited Purpose Health (FSA), only dental and vision expenses are
eligible for reimbursement; medical expenses are not eligible for