Health Savings Account | HSA

 

Adjustments to Health Savings Account Contributions Nov. 16 - Dec. 31, 2024

During the year-end period, you cannot change your HSA contributions in HRIS. Please submit an HSA Payroll Deduction Form for 2024 or 2025 to make changes. After Jan. 1, 2025, you can make changes in HRIS. 

If you need to request a refund because you over-contributed, use the HSA Employee Excess Contribution Cancellation Request Form. 

For further assistance, please contact ADOA Benefits at 602-542-5008, toll-free at 800-304-3687 or email [email protected]

  • 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. Plus, HSA funds can be invested.
  • An HSA is used in conjunction with a High-Deductible Health Plan (HDHP) and is designed to help you pay the higher deductible of that plan. If you don't need all of the money in a given year, you get to keep it, and it continues to grow.
  • For Flexible Spending Accounts (FSAs), see here.
Optum_HSA_Card

    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 no “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 anytime during the year. Visit hrsystems.azdoa.gov> YES Portal> Your Employee Services> Benefits> Elections> Health > Additional Contribution. See Step-by-Step Instructions.
    • Note: From mid-November to December 31 each year, changes can be submitted by the HSA Payroll Deduction Authorization Form on the Forms page

    2024 Maximum Contribution Limits

    • Employee $4,150
    • Family - $8,300
    • 55+ Catch-Up Contribution - $1,000 in addition to the Employee or Family contribution. Add to your Max Limit if applicable.

    Remember to Subtract the State contribution from the Maximum Contribution Total.

    Change Your Contribution Rates Anytime

    In-Network 2024

    • $1,600 for employee-only coverage
    • $3,200 for family coverage
       

    Out-of-Network 2024

    • $5,000 for employee-only coverage
    • $10,000 for family coverage

    In-Network 2024

    • Out-of-pocket maximum: 
      • $3,500 for employee-only coverage
      • $7,000 for family coverage

    Out of Network 2024

    • Out-of-pocket maximum: 
      • $8,700 for employee-only coverage
      • $17,400 for family coverage

    HSA CUSTOMER VERIFICATION

    • You must pass the verification process for your Health Savings Account (HSA) bank account to be activated.
    • For your protection, the federal Patriot Act requires Optum Bank to obtain, verify, and record information identifying 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. The State contributions will not be refunded. (To open an account, see below.)
    • Please ensure that we have your correct mailing address (P.O. Boxes are not allowed) and that your name in our system matches the full legal name on your Social Security card.

    OPENING AN HSA IF ACCOUNT VERIFICATION WAS NOT COMPLETED

    • If your ADOA HSA account is not verified after 60 days, it will be closed. To open an HSA account with Optum Bank, complete the online application: Optum Bank HSA Online Enrollment.
    • You will need the appropriate Group ID number to ensure the enrollment is correctly affiliated with your employer, as listed below. Once the enrollment is complete, contact your employer or ADOA to restart your contributions.
    • Group IDs: State of Arizona Employees - A04791 | UArizona - A04791UA | ASU- A04791AS | NAU- A04791NA | Power Authority - A04791PA | Commerce Authority - A04791CA

    Q. WHO IS ELIGIBLE TO OPEN AND CONTRIBUTE TO AN HSA?

    • A. 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 concerning 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 HEALTHCARE 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 keeping detailed records (including original receipts) for all HSA withdrawals.

    Q. WHAT ARE CONSIDERED “QUALIFIED MEDICAL EXPENSES”?

    Q. WHAT IS THE MAXIMUM AMOUNT THAT I CAN CONTRIBUTE TO MY HSA THIS PLAN YEAR? 

    • A. The HSA Maximum Contributions Guide 2024  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 from the Forms page.

    Q. WHEN ARE CONTRIBUTIONS AVAILABLE IN MY HSA ACCOUNT?

    • A. 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 from the Forms page.

    Q. HOW DO I CANCEL CONTRIBUTIONS?

    • A. To cancel your employer's contributions, use the Contribution Cancellation Request Form from the Forms page.
    • A. To cancel your paycheck contributions, access hrsystems.azdoa.gov > YES Portal > Your Employee Services > Benefits > Elections > Health > Additional Contribution.

    This policy describes who is eligible to receive contributions to a health savings account (HSA) as an active employee and/or university employee.

    HSA Debit Card

    • You access your HSA funds with a debit card to pay for qualified medical expenses.
    • You will receive an Optum Bank mailing with account activation instructions.
    • Access account information on the Optum Bank website or download the Optum Bank app.
    • To order additional cards for your spouse and eligible dependents, sign in to your Optum Bank account. In the “I want to” section, click “Manage debit cards.”
    • If you’re a new account holder, you’ll be able to choose a PIN when you first activate your debit card. If you’ve forgotten your PIN or need to change it, call the customer service phone number on the back of your debit card.

    • Form 1099 for your Optum Health Savings Account (HSA), can be found on optumbank.com/arizona or on the Optum app.