Health Savings Account
ISD 518 offers a Health Savings Account (HSA) in conjunction with the High Deductible Health Plan (HDHP) coverage option. The traditional insurance plan offerings, such as the $500 deductible and $1,000 deductible are not eligible for a HSA.
HSAs are a tax-advantage savings account that health plan that meets IRS guidelines and allows the participant to save tax-free money for eligible medical expenses. Funds contributed to an HSA account do not expire at the end of the year (there is no spend-by date). Money you contribute to an HSA is yours to keep even if you change jobs or leave the District.
Below are some helpful videos overviewing a Health Savings Account
Health Savings Account – Recorded Webinar
Health Savings Account Overview
Why Should I Get an HSA?
You are eligible to open and contribute to an HSA if:
•You are covered by a qualified high deductible health plan
•You are not covered by any other health plan that is not a qualified high deductible health plan
•You are not enrolled in Medicare or Tricare
•You are not claimed as a tax dependent by someone else
•Contributions can come from the account holder, the employer, or both. It is your responsibility to monitor your HSA contributions (employee and employer) to ensure you do not exceed the IRS limit.
HSA Contribution Limits 2024 Tax Year:
Individual Coverage Limit: $ 4,150
Family Coverage Limit: $8,300
Catchup: Once Age 55, HSA members can contribute an additional $1,000 towards individual or family coverage.
If an employee chooses the High Deductible Health Plan and the premium cost for the plan is less than the District Board Share negotiated (refer to employee master agreement), the District will deposit the difference (up to the IRS single maximum base contribution, not including any catch-up provisions) into the employees Health Savings Account on a per paycheck basis. All provisions are as per your applicable employee master agreement.
It is the employees responsibility to monitor employee contributions and employer contributions to their individual Health Savings Accounts to ensure they do not over contribute as per IRS rules. Any amount over the HSA contribution limits and applicable tax consequences are the responsibility of the employee.
Health Savings Accounts are managed by a third party company, WEX Benefits.
If you elect to participate in a High Deductible Health Plan an HSA account will be established with WEX Benefits. You will receive your debit card in them mail 14 days following enrollment. You will also be required to set up your online benefit account and sign the service agreements for use. Here is a helpful guide on setting up or accessing your online account
Flex Spending Accounts
A Flex Spending Account (FSA) is an employer sponsored spending account that allows employees to set aside pre-tax earnings to pay for eligible health care or dependent care expenses. Pre-tax funds are deducted from each paycheck and automatically deposited into an FSA account. Employees can decide how much to contribute, tax free, for the year. Flex Spending Accounts do have a deadline and must be spent by June 30 each year.
Below are helpful videos overviewing the Flexible Spending Accounts
Flexible Spending Account Webinar
Flexible Spending Account Overview
FSAs may benefit employees because:
•Contributions lower taxable income
•Reimbursements are made tax free from employees FSA account
•Employees have access to FSA amount on first day of plan year
Types of Flex Spending Accounts:
•Medical FSA: Allows employees to pay for eligible expenses not covered by the health plan, such as deductibles, coinsurance, dental care, orthodontia and vision care. The total amount the employee chooses to contribute is available to them on the first day of the plan year, even if they have not contributed that much yet.
•Dependent Care FSA: Allows employees to pay for day care expenses for their children under age 13 or for older dependents not capable of self-care needed to allow an employee to work. The money must be contributed to the employee’s account before they can request reimbursement.
Medical FSA and Dependent Care Limits 2024:
Medical Flex Spending Account: $3,200
Dependent Care Limit: $5,000
Flex Spending Accounts are managed by a third party company, WEX Benefits..
If you elect to participate in a Flex Spending Account an account will be established with WEX.
•If an employee elects a Medical Flex Spending Account, they will receive a debit card in the mail upon enrollment. Upon receipt, employees should set an online FSA account to help manage the funds, much like online banking.
•If an employee elects a Dependent Care Flex Spending Account they will submit receipts for eligible expenses and get reimbursed up to flexed amount.