Health Savings Accounts
State continues to contribute to Health Savings Account
The state will contribute approximately 45 percent of the Consumer Driven Health Plan (CDHP) annual deductible to your Health Savings Account (HSA) in 2020. The initial contribution will be made on your January 08, 2020 paycheck. Employees enrolled in a CDHP effective from January 1, 2020 through June 1, 2020 receive the full pre-fund amount. CDHPs effective after June 2, 2020, but before December 2, 2020, receive one-half of the initial contribution. The initial pre-fund contribution is based on the coverage type (single/family) that is effective January 1, 2020 or your first day of coverage in a state health plan during 2020.
|Plan||Initial Contribution||Bi-Weekly Contribution||Annual Employer Contribution|
|HSA 1 – Single||562.38||21.63||$1,124.76|
|HSA 1 – Family||$1,124.76||$43.26||$2,249.52|
|HSA 2 – Single||$393.90||$15.15||$787.80|
|HSA 2 – Family||$787.80||$30.30||$1,575.60|
If you have an active HSA with The HSA Authority at Old National Bank and wish to continue receiving the state’s contributions in 2020, you do not need to open a new HSA account. Employee HSA contribution amounts do not carry over from year to year, if you would like to contribute to your account during 2020, you need to access your PeopleSoft record and enter your desired contribution.
If you are electing to participate in an HSA for the first time in 2020, you must edit the online HSA option in PeopleSoft and choose the HSA that corresponds to your medical CDHP election in order to receive the state’s contribution. In addition to electing the HSA option, you need to open an HSA account with The HSA Authority before January 1, 2020.
- View the 2020 HSA Education and Enrollment Packet
- HSA and Medicare FAQs
- HSA Healthcare Cost-Savings Strategies
As a reminder, to be eligible for an HSA you:
- Must be currently enrolled in an HSA-qualified health plan;
- May not be enrolled in any other non-HSA qualified health plan;
- May not have, or be eligible to use, a general purpose Flexible Spending Account (FSA);
- Cannot be claimed as a dependent on another person’s tax return;
- May not be enrolled in Medicare, Medicaid, HIP or Tricare;
- Must not have used VA benefits for anything other than preventative services in the past three months.
View IRS Publication 969 for more information.
To open your HSA, link to The HSA Authority’s website from PeopleSoft on your HSA election page, or go directly to www.theHSAauthority.com and click on the “Enroll Now” button. The first page of this online session says: If you have been instructed by your employer to visit this site to open your HSA, click this button and insert your employer code below. Enter 100366 in the “employer code” to begin the state application.
You need the following information to complete the HSA application online:
- Driver’s license
- Social Security number, date of birth and address for your beneficiaries
- Social Security number, date of birth and address for your authorized signer (if selected)
- Security passwords for you and your authorized signer (based on the answer to one of the five questions you select during the application process)
HSAs have a maximum contribution limit
Contributions are allowed up to the maximum statutory limit. The maximum annual contribution for 2020 is $3,550 for self-only policies and $7,100 for family policies. Individuals age 55 and over may make an additional catch up contribution of up to $1,000 in 2020.
Combined household contributions cannot exceed the family limit. The maximum includes the state’s contributions and any other contributions to your HSA.
|Plan||Coverage||IRS Maximums||State Contribution||Maximum Employee Contribution||Maximum Bi-Weekly||Maximum Employee Contribution Over 55||Maximum Bi Weekly Over 55|