Health Savings Account Information
Health Savings Accounts are overseen by the IRS. It is YOUR responsibility to make sure you comply with IRS guidelines regarding contributions and use of your HSA funds. We recommend speaking to your tax or financial advisor regarding your individual situation.
WHAT IS A HEALTH SAVINGS ACCOUNT (HSA)?
Basically, an HSA allows you to use pre-tax dollars to pay for out-of-pocket healthcare expenses like medical, dental, vision and other health expenses for you or your dependents that you would normally have to pay for with post-tax money. An HSA is different and separate from your insurance. It is an account you set up at a financial institution and it belongs to you during and after your employment with the district. Because deposits into the Health Savings Account are not taxed, the IRS regulates how much you may contribute and how you may spend it. In order to get the tax advantage of an HSA you must be enrolled in a qualified High Deductible Plan (as defined by the IRS). As your account grows, you can also invest the funds or use it for retirement expenses after age 65!
Moda Plans 6 and 7 are the two health insurance options available to employees and retirees that qualify as HSA compliant medical plans. These plans are the lowest priced plans available in OEBB, and also have the highest deductibles.
DO YOU QUALIFY?
You must establish that you are not:
1) Being claimed as a dependent on another person's tax return
2) Covered by any other health plan other than a qualified High Deductible Health Plan (HDHP)
3) Medicare Eligible
HOW IT WORKS:
Employees may select Moda Plan 6 or 7 with or without dental and/or vision. If the combined cost of those three plans is less than the District paid CAP ($1,570 for full time staff) the district will deposit the difference (savings) into your Health Savings Account automatically! For example, you could choose a plan combination totaling $1,350.50 per month. That means the district would deposit: ($1,570- $1,450.50) = $119.50 each month into your H.S.A. account. That's $1,434.00 per year into your HSA account that may be saved or used for qualifying expenses. You may also designate personal contributions in addition to any district contribution! Funds will continue to accrue year after year as it is not a "use it or lose it" plan like the Section 125. Most financial institutions offer debit cards to access your HSA and you do NOT need to submit receipts to the bank. However, you are accountable to the IRS, so you may want to keep receipts at home in case you are audited in the future.
REMEMBER: If you choose Moda Plans 6 or 7, you are not finished with your enrollment!
If you used an HSA account last year, the district will continue to deposit funds to the same account. However, if this is the first time you are enrolling in the high deductible plan may also open a Health Savings Account and turn the enrollment form into the payroll department before the payroll cutoff date. You may establish an HSA account with American Fidelity, Optum Bank or your own personal bank. Enrollment forms are linked below!
Annual Contribution Limits:
2023
$3,850 If the account owner (employee) has individual coverage on Moda Plans 6 or 7
$7,750 If the account owner (employee) has more than just the employee covered on Moda Plans 6 or 7.
$1,000 additional "Catch-up" contribution for participants who are age 55 or older.
2024
$4,150 If the account owner (employee) has individual coverage on Moda Plans 6 or 7
$8,300 If the account owner (employee) has more than just the employee covered on Moda Plans 6 or 7.
$1,000 additional "Catch-up" contribution for participants who are age 55 or older.
CURRENT SECTION 125 PARTICIPANTS:
If you are contributing into a Section 125 plan now and choose to open a Health Savings Account, you need to know the IRS again has rules regulating your tax liability. The IRS will NOT allow you to have money in a Section 125 while also contributing to a Health Savings Account. This is very important because on the last day of your Section 125 plan year (December 31, 2022) you must not have any money remaining in your Section 125 Flex plan. The district will "hold in trust" your H.S.A. contributions during the run out period for your Section 125 (January 2023 if your Flex dollars were used up in time, or 90 days into the new year if you had even $0.01 in your Flex). Please talk to Todd Wells at American Fidelity if you have any questions at all about coordinating a smooth transition from Flex to H.S.A.
HSA Resources:
View American Fidelity's HSA video
Frequently asked questions: H.S.A.
View IRS Publication 969 Regarding Health Savings Accounts
Enrollment Forms
Submit to Holly Bernhardt in the Payroll Department
AMERICAN FIDELITY
American Fidelity HSA ENROLLMENT FORM
(Send application to Holly Bernhardt in payroll, do NOT submit online)
Todd Wells
Account Manager
American Fidelity Assurance Company
1-877-293-1090 ext. 13
Fax: 1-877-295-1091
SELF-SERVICE TUTORIALS:
For H.S.A. support call: 866-326-3600 or e-mail customer service directly at HSA Support
OPTUM BANK
Optum Bank 2023-24 H.S.A ENROLLMENT FORM
Return the application to Holly Bernhardt in the payroll department.
ANY OTHER FINANCIAL INSTITUTION:
2023-24 H.S.A. Enrollment form - Any bank other than Optum Bank or American Fidelity.
If you elect to establish a Health Savings Account with your own bank, you must first visit the bank and open an HSA account. Then complete this form and send to Holly Bernhardt in Payroll
Email or call 541-693-5606 with questions
Click here to go directly to the Forms Library and to find Links to Company Resources