Health Savings Account Information
A Health Savings Account (H.S.A.) 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. The primary rule is that in order to get the tax advantage of an H.S.A. you must also be enrolled in a health plan that has high deductibles (as defined by the IRS.) After money is contributed to the H.S.A. you may spend it on qualifying medical expenses. The goal is to grow your account over time and save money on your insurance costs as the High Deductible plans are less expensive than the other plans.
The Moda plans 6 and 7 are the two medical insurance options available to employees and retirees that qualify as HSA compliant medical plans. These plans have the highest deductibles.
DO YOU QUALIFY? You must establish that you are not:
1) 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) or
3) Enrolled in Medicare
HOW IT WORKS: Employees may select the Moda Plans 6 or 7 with or without dental and/or vision. If the combined cost of those three plans is less than the District Contribution CAP ($1600 for full time staff) the district will deposit the difference (savings) into your Health Savings Account automatically for employees who already have an HSA set up, otherwise you will need to set up that account through American fidelity, Optum or a bank of your choice!!! For example, you could choose a plan combination (medical, dental and vision) totaling $1,494.42 per month. That means the district would deposit: ($1600- $1,494.42) = $105.58 each month into your H.S.A. account. That's $1266.96 this year into your HSA account that may be saved or used for qualifying expenses. If you are generally healthy and have very few medical expenses, that money will continue to accrue year after year. It is not a 'use it or lose it' plan like the Flexible Medical Spending Account (Section 125. ) Most financial institutions offer debit cards to access your H.S.A. 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 H.S.A, account last year, the district will assume you want to contribute to the same account this year. However, if this is the first time you are enrolling in the high deductible plan you may also open a Health Savings Account and turn the H.S.A. enrollment form into the payroll department before the enrollment deadline. You may establish an H.S.A. account with American Fidelity, Optum Bank or your own personal bank. If you prefer to open an account with your own bank, you must first visit your bank to open an account, then be sure to complete the appropriate form below for our payroll office.
CURRENT SECTION 125 PARTICIPANTS: If you are contributing into a section 125 flexible medical spending account 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 2025 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.
2024 ANNUAL H.S.A. CONTRIBUTION MAXIMUM:
*includes both employee and employer contributions
$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
2025 ANNUAL H.S.A. CONTRIBUTION MAXIMUM:
*includes both employee and employer contributions
$4,300 If the account owner (employee) has individual coverage on Moda Plans 6 or 7
$8,550 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
***H.S.A. ENROLLMENT FORMS ARE DUE IN THE PAYROLL DEPARTMENT BY September 12, 2024***
FAX to Payroll at: 541-923-8925, or email to: payroll@redmondschools.org
AMERICAN FIDELITY
Complete the American Fidelity H.S.A. enrollment form below to open an American Fidelity Health Savings Account. Fax it to the payroll department at: 541-923-8925 or email the application to payroll@redmondschools.org
American Fidelity H.S.A. Enrollment form.
DO NOT ENROLL ONLINE! SUBMIT PAPER APPLICATION TO PAYROLL!
For H.S.A. support call: 866-326-3600 or e-mail customer service directly at HSA Support
SELF-SERVICE TUTORIALS:
Contact Todd Wells with questions:
Todd Wells, Account Representative
American Fidelity Assurance Company
877-293-1090 Ext .13
Fax: 877-295-1091
todd.wells@americanfidelity.com
OPTUM BANK
Complete the Optum Bank H.S.A. application below to open an Optum Bank Health Savings Account. Fax it to the payroll department at: 541-923-8925 or email the application to payroll@redmondschools.org
Optum Bank H.S.A. Enrollment Form
DO NOT ENROLL ONLINE! SUBMIT PAPER APPLICATION TO PAYROLL!
Contact Optum directly to gain access to your account after it is established: 888-445-8745.
ANY OTHER BANK:
If you elect to establish a Health Savings Account with your own bank, you must first visit the bank and open an account. Then, fax the application below to the payroll department at: 541-923-8925 or email the application to the payroll@redmondschools.org
H.S.A. Enrollment form - Any other bank (other than American Fidelity and Optum)
DO NOT ENROLL ONLINE! SUBMIT PAPER APPLICATION TO PAYROLL!
Email questions to marissa.martin@redmondschools.org