HSA Contributions

Contribution Timing

• Health Savings Account (HSA) contributions will be distributed evenly over the course of the year, in accordance with your payroll schedule.
• Biweekly: 24 pay periods | Monthly: 12 pay periods | 9-Month: 18 pay periods

Note: If you are already enrolled in an HSA you must reenroll each year to continue participation. Enrollment does not carry forward from year to year.

Annual Limits

¹Contributions from all sources combined, such as employee, employer, and third parties (i.e. parent, spouse, or anyone else) must not exceed these limits.

²HSA holders that meet these qualifications are eligible to make an HSA catch-up contribution of $1,000: age 55-65 (regardless of when in the year an account holder turns age 55), if they are not enrolled in Medicare. If an account holder enrolls in Medicare mid-year, catch-up contributions should be pro-rated. 

Maintenance Fee

You will not pay a monthly maintenance fee if you are an employee or retiree and you are enrolled in the state's High Deductible Health Plan (HDHP) with HSA.

A monthly maintenance fee of $1.29 will automatically be deducted from your account if:

• You leave state service and keep your HSA open
• You transferred your HSA to Optum Financial but did not enroll in the state's HDHP with HSA for the current plan year

HSAs with a zero balance and no activity for 13 months will be automatically closed. 

Employer Contribution

Only active state employees who are participating in the HDHP and HSA will be eligible for an employer HSA contribution.

If you are hired mid-year, you will receive a prorated annual HSA state contribution based on the coverage effective date. You will receive $69 per month for every month in which you have single coverage and $137.50 per month for every month in which you have family coverage.

Employees who are required to pay half the total health insurance premium will receive one-half of the state HSA employer contribution.

Amount

This is the amount your employer will deposit in your HSA, if you are eligible. 

Timing

State employer HSA contributions for employees who are paid biweekly will be provided in 24 payments.

Employees paid monthly will receive one payment per month. 

Employees who leave state service will not receive any payments that would have occurred on future paychecks.

HSA Contributions After Age 65

You can make an HSA contribution after you turn age 65 and enroll in Medicare if you have not maximized your contribution for your last year of HSA eligibility. You have until April 15 of the year following the tax year you lose HSA eligibility to make your HSA contribution. You can do so even if you are no longer eligible for an HSA, so long as you are making a contribution for a period when you were eligible.

Retirees enrolled in the HDHP/HSA benefit option are not required to pay the monthly administrative fee.