Employee Benefits - Health Savings Account (HSA)

Health Savings Account (HSA)

MCPASD offers Health Savings Accounts (HSA) through Employee Benefits Corporation (EBC). An HSA is a tax-advantaged personal savings account that can be used to pay for medical, dental, vision and other qualified expenses now or later in life. To contribute to an HSA you must be enrolled in a qualified high-deductible health plan (HDHP) and your contributions are limited annually. The funds can even be invested, making it a great addition to your retirement portfolio.

Eligibility and Enrollment

In order to open and contribute to an HSA, you must:

Be enrolled in a qualified HDHP
Not be covered by a secondary health insurance plan that is not a HDHP
Not enrolled in Medicare or TRICARE AND
Not be another person’s tax dependent.

While you may be eligible to open an HSA, please consider if you have any HSA ineligible dependents. To be an eligible dependent, you have to be able to claim them as a tax dependent. Any dependent up to the age of 26 qualifies to be covered under your Dean health insurance. But if you are unable to claim them as a dependent on your taxes, you cannot use your HSA funds to pay for their healthcare costs. In that case, you/your dependent would pay full price under the HDHP for their claims until the family meets the $6,000 deductible.

If HSA funds are used on ineligible expenses or an ineligible dependent, you will have to pay income tax on that amount in addition to paying a 20% penalty.

Are you currently enrolled in a healthcare FSA (flexible spending account)?

As per federal regulations, you cannot receive contributions to an HSA account if you have even 1 penny or more in a healthcare FSA . This also applies to a spouse’s healthcare FSA. If there is a balance on your HCFSA, you will not be able to contribute or receive district contributions until the plan ends.

If you choose the HDHP at enrollment, the benefits team will contact you with more information about the accompanying HSA: HSA Plan Information & Optional Employee Deposit Form

Plan Information

Simply HSA Plan Information

SimplyHSA is a Section 223 Health Savings Account that, in accordance with IRS guidelines, provides pre-tax reimbursements for eligible health care expenses.

Participating employees choose how much of their pay to place in their health savings account. Participants are able to save money on taxes, as the money they elect to place from their paycheck into the HSA on a pre-tax basis is not counted as taxable income. Each time they need to pay for an eligible expense, this account is an option. If they choose not to spend the money during the year, they can save the money in the account for future use.

In addition to the employee contribution, the district will also make a monthly contribution of $431.25 for a family plan or $172.50 for a single plan to employees' Health Savings Accounts if enrolled in the High Deductible Health Plan (HDHP). This equates to annual contribution of $5,175 Family / $2,070 Single.

The IRS imposes limits on the amount that can be contributed to your HSA annually.

If you are 55 or older by the end of the tax year, you can contribute an extra $1,000 to your account. This is known as a catch-up contribution.