HIGH-DEDUCTIBLE HEALTH PLAN (HSA) INTRODUCTION
- 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
- IRS HSA Contribution Maximum Per Year for 2022
- Employee Only - $3,650
- Family- $7,300
- State HSA Contribution Per Year to your HSA. This money can be used to pay all or some of the deductible and out-of-pocket costs.
- Employee Only - $27.69 per pay period | $791.94 per year
- Family - $55.38 per pay period | $1,439.88 per year
- Employee HSA Contribution Maximum Per Year for 2021
- Employee Only - $2,930.06
- Family - $5,860.12
- This is how much you can contribute in addition to the State contribution. See the HSA Maximum Contribution Guide 2022 for information and examples.
HDHP MINIMUM REQUIRED DEDUCTIBLES
- $1,500 for employee-only coverage
- $3,000 for family coverage
- $5,000 for employee-only coverage
- $10,000 for family coverage
- Out-of-pocket maximum:
- $3,500 for employee-only coverage
- $7,000 for family coverage
- Out of Network:
- Out-of-pocket maximum:
- $8,700 for employee-only coverage
- $17,400 for family coverage
HSA ADMINISTRATOR | OPTUM BANK
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
- 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.
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 certain 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”?
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 | 2021 | 2022
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?
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.