How do Health Savings Accounts work?
To have a Health Savings Account (HSA), you must be enrolled in the High Deductible Health Plan. You can elect an annual contribution which will be deducted on a pre-tax basis from each of your paychecks in equal amounts. These contributions are to help you pay for current and future healthcare costs that your insurance does not cover. Any funds leftover at the end of the year will stay and continue to grow. These moneys can be used tax-free, ONLY to cover medical costs. Feel free to review the HSA video for more information.
Does Ñý¼§Ö±²¥ State contribute to employee Health Savings Accounts (HSAs)?
Yes, $1,300 for a single high-deductible medical plan and $2,000 for a family high-deductible medical plan, if elected at Open Enrollment. Newly hired employees who elect the high-deductible medical plan, paired with an HSA, will receive a prorated employer contribution if the account is opened after the first of the year.
What does HSA catch-up contribution mean?
Similar to IRAs and 401Ks, enrollees ages 55 and over can elect to make catch-up contributions of $1,000 for individual and family plans.
Can I enroll in the HSA mid-year?
You can begin, increase, and/or decrease your contributions to your HSA any time throughout the year. Just complete the HSA enrollment form (PDF) or HSA change form (PDF) and submit it to benefits@kent.edu. The IRS has set qualifying requirements to enroll in a health savings account, such as:
- You must be enrolled in a qualified high-deductible health plan.
- You must not have other medical coverage.
- You must be 18 or older
- An employee cannot be enrolled in Medicare
- You cannot be claimed as a dependent on someone else's tax return.
- You cannot be enrolled in a health care flexible spending account (FSA) or a health reimbursement account (HRA).
Individuals reaching the age of 65 who ARE NOT enrolled in Medicare can have the HSA and contribute to it. Individuals who ARE enrolled in Medicare cannot contribute to an HSA, nor receive the employer contribution. If you are considering enrollment in Medicare, remember that you can be charged a tax penalty for contributions to an HSA up to 6 months prior to your Medicare enrollment date. It's a good idea to stop all contributions to an HSA six months before the date you intend to enroll in Medicare. If you already have an existing balance in an HSA, you can continue using the HSA funds even though you cannot contribute to the account.
For further questions on Medicare and HSAs, please contact PNC Customer Service at 844-356-9993 or contact a Social Security agent.
How do I change my contributions to the HSA?
You can change your contributions anytime throughout the year by completing the HSA Change form (PDF) or visiting our Benefits Forms Library and printing the form out. Once complete, return it to the Employee Benefits Office in Heer Hall, Ñý¼§Ö±²¥ Campus. The change will be made effective on the next payroll date.
If I enroll in a high deductible health plan, can I enroll in a Health Care Flexible Spending Account (FSA)? If so, how much can I contribute?
If you enroll in a high deductible health plan, you cannot enroll in the health care flexible spending account. However, you CAN enroll in the dependent care ("daycare") flexible spending account and contribute a maximum of $5,000 for 2025.