Health Savings Account | HSA
INTRODUCTION
- This page has information on Health Savings Accounts (HSAs) used in conjunction with a High Deductible Health Plan (HDHP).
- For Flexible Spending Account (FSA) information, visit our FSA page.
HIGH-DEDUCTIBLE HEALTH PLAN (HSA) INTRODUCTION
- An HSA is a special type of savings account that allows individuals to pay for current health expenses and save for future qualified medical expenses on a tax-free basis. You can use this account even after you retire.
- An HSA is used in conjunction with a High Deductible Health Plan (HDHP).
ADVANTAGES
- Contributions: The State makes biweekly contributions to your HSA to use towards qualified medical expenses. You can contribute on a pre-tax basis and use the funds for qualified expenses, including medical, dental and vision costs.
- Triple Tax Advantage: Contributions are tax-free. Withdrawals to pay for expenses are tax-free. Interest earnings and investment growth are tax-free.
- Unused Funds Remain: There is not a “use it or lose it” rule. Any unused funds remain in your account for future use.
- Money Stays With You: Funds in the HSA are yours and remain available for future medical expenses, even after you retire.
- Investment: Funds may also be invested with tax-free growth.
CHANGE CONTRIBUTIONS AT ANY TIME
- You may update your HSA contribution amount per pay period at any time during the year. Visit hrsystems.azdoa.gov> YES Portal> Your Employee Services> Benefits> Elections> Health > Additional Contribution.
- Note: From mid-November to December 31 each year, changes can be submitted by the HSA Payroll Deduction Authorization Form on the Forms page.
HSA ANNUAL CONTRIBUTION LIMITS
For information and examples, see the HSA Maximum Contribution Guide.
HDHP MINIMUM REQUIRED DEDUCTIBLES
- In-Network
- $1,500 for employee-only coverage
- $3,000 for family coverage
- Out-of-Network
- $5,000 for employee-only coverage
- $10,000 for family coverage
OUT-OF-POCKET MAXIMUMS
- In-Network:
- Out-of-pocket maximum:
- $3,500 for employee-only coverage
- $7,000 for family coverage
- Out-of-pocket maximum:
- Out of Network:
- Out-of-pocket maximum:
- $8,700 for employee-only coverage
- $17,400 for family coverage
- Out-of-pocket maximum:
HSA ADMINISTRATOR | OPTUM BANK
- Optum Bank website | 866-610-4839
- HSA Account and Debit Card Information
- Form 1099 for your Optum Health Savings Account (HSA), can be found on optumbank.com/arizona or on the Optum app.
- The HSA can be used with the HDHP from both medical carriers, Blue Cross Blue Shield of AZ or UnitedHealthcare
HSA Customer Verification
- For your Health Savings Account (HSA) bank account to be activated, you must pass the verification process.
- For your protection, the federal Patriot Act requires Optum Bank to obtain, verify and record information that identifies each person who opens a new account.
- To begin this process, open, read, and follow all the instructions in all correspondence from Optum Bank.
- Until you pass the verification process, all HSA contributions to your account will be held. You will still have health insurance, but you will not have an HSA.
- If you do not pass the verification within 60 days of your first notification, your contributions will be refunded to you. The State contributions will not be refunded to you.
- Be sure we have your correct mailing address (no P.O. Boxes allowed), and that your name in our system matches the full legal name on your Social Security card.
HSA DEBIT CARD
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HEALTH SAVINGS ACCOUNTS (HSAs)
Q. WHAT IS A HEALTH SAVINGS ACCOUNT (HSA)?
A. An HSA is a special type of savings account that allows individuals to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
HSA funds can be invested.
- Learn more about how an HSA works with these intro videos:
- Determine how much to contribute to your HSA with the Optum Bank HSA Calculator.
Q. Who is eligible to open and contribute to an HSA?
A. In order to open or contribute to an HSA, a person must be...
- Enrolled in one or more HSA-qualified health plans
- A health plan is HSA-qualified if it meets specific requirements with respect to deductibles and out-of-pocket maximums. The HSA is the only Benefit Options health plan that is HSA-qualified.
and must not be...
- Covered by any non-HSA-qualified health plan
- Entitled to benefits under Medicare
- Claimed as a dependent on another person’s tax return
- Participating in a flexible spending account (FSA) program in its active period
- Participating in an FSA program in its grace period if the FSA balance at the end of the active period was greater than zero.
Q. Can an HSA member open a health care flexible spending account (FSA)?
A. Yes, but only a Limited Purpose FSA (one that reimburses dental and vision expenses only).
Q. Who is eligible to use HSA funds?
A. Money may be withdrawn from an HSA at any time, regardless of the HSA owner’s health plan type. These withdrawals are tax and penalty-free when the money is used to pay qualified medical expenses. Benefit Options recommends that you keep detailed records (including original receipts) for all HSA withdrawals.
Q. What are considered “qualified medical expenses”?
A. Please refer to IRS Publication 502 - Medical and Dental Expenses.
Q. What is the maximum amount that I can contribute to my HSA this plan year?
A. This document shows the contribution amounts provided by the State, the employee annual maximum contribution to avoid tax penalties, and the IRS annual maximum contribution limit.
Q. How do I have HSA contributions deducted from my paycheck?
A. Complete the HSA Payroll Deduction Authorization Form | 2023
Q. WHEN ARE CONTRIBUTIONS AVAILABLE IN MY HSA ACCOUNT?
Typically, the employee and employer contributions are deposited on the Friday of the pay week. At times, the schedule may change due to state and federal holidays. Funds are available within one business day of being deposited. You may manage your account on optumbank.com/arizona or via the OptumBank app.
Q. I contributed to my HSA in error. How do I request my funds be returned?
A. Complete the Excess Contribution Return Request Form.
Q: How do I cancel contributions?
A: To cancel your employer's contributions, use the Contribution Cancellation Request Form.
A: To cancel your paycheck contributions, access hrsystems.azdoa.gov > Y.E.S Portal > Your Employee Services > Benefits > Elections > Health > Additional Contribution.
HSA CONTRIBUTION POLICY
This policy describes who is eligible to receive contributions to a health savings account (HSA) as an active employee and/or university employee.
