Benefits & Wellness
Health Savings Account (HSA)
Overview
A health savings account, or HSA, is an account you use to pay for qualified medical, pharmacy, dental and vision expenses and save on taxes. The key things to know about HSAs are:
- You must be covered by a high-deductible health plan to open an HSA
- You own your HSA and the money in it
- It's not a "use it or lose it account"; unused funds roll over from year to year
- Anyone can deposit money in your HSA, up to an annual limit set each year by the IRS
The College partners with Optum Bank to provide a comprehensive HSA plan to qualified employees. Any benefits eligible employee who enrolls into the College's sponsored medical plan is eligible to enroll into an HSA. Enrollment for the HSA is done in May of each year during open enrollment. Unless you experience a qualifying Life Status Change or Work Status Change you will be locked into this election until the next Open Enrollment Period.
If you chose to enroll into an HSA, you will need to complete an Account Setup with Optum Bank. You can use the below Optum Account Setup instructions to complete this. If you have any questions or need help with the process, you can contact the HR Department at HR@sscc.edu.
What can an HSA be used for?
- Over-the-counter medications even if they haven't been recommended by a doctor.
- Menstrual products including tampons, pads, and liners.
- Birth control pills, condoms and erectile dysfunction medications.
- Brest pumps and supplies not covered by the health plan.
- Sunscreen if it is SPF 15 or higher since it can help lower the risk of skin cancer.
- Prescription eyeglasses, readers, prescription sunglasses, contacts, and contact solution.
- Home improvements
- No, you can't pay for a new kitchen, but you can use it for the cost of home improvements if the purpose is medical care. That care can be for you, your spouse, your child or another eligible dependent. Examples of medical-related home improvements include:
- Building an entrance ramp
- Widening doorways or hallways
- Installing handrails
- Modifying door handles
- No, you can't pay for a new kitchen, but you can use it for the cost of home improvements if the purpose is medical care. That care can be for you, your spouse, your child or another eligible dependent. Examples of medical-related home improvements include:
- Weight-loss programs
- You can use your HSA to pay for a weight-loss program in some cases. For example, if you've been diagnosed with obesity, high blood pressure or heart disease, you may be able to use those funds. What's not covered? Your gym fees or food.
If you have questions about a service or product that is not listed, you can use the Optum Financial qualified medical expense tool to see if it qualifies.
How to earn, or make, a contribution to HSA
Employees can earn a contribution to their HSA from the College by completing Wellness Credits. (Please see the Wellness section for more information about the wellness credits). Credits can be earned from July 1st to May 31st of each benefit period. Contribution rates are shown below.
Employee Contributions Earned
- Single Plan ------------------------------ Earn $625 per credit (maximum of $2,500)
- +Spouse/+Child/Family -------------- Earn $1,250 per credit (maximum of $5,000)
Additional Credits Earned
Employees with a qualified spouse can earn an additional contribution from the College if the spouse completes two (2) wellness credits:
- Spouse Annual Wellness Visit ------------------ $200
- Spouse Biometric Screening -------------------- $200
Employees are also able to make a pre-tax contribution to their HSA. This is done during the enrollment process. You will be able to enter the Annual Contribution Amount you desire. That amount will be divided by the number of paydays in the benefit year (24) and the result will be the amount deducted from your pre-tax earnings each pay period. Example: You want to contribute $600 Annually to your HSA. Your per pay deduction would be $25 ($600/24).
Employees are only able to contribute up to the federal limit set by the IRS.
The current IRS Contribution Limit is:
- Single ---------------------------------- $3,850
- +Spouse/+Child/Family ----------- $7,750
If you receive a contribution from the College, that amount will be deducted from the IRS limit. The remainder is what the employee can contribute. Example: You are enrolled into a single plan and have earned the maximum contribution from the College.
$3,850 (IRS Limit) - $2,500 (from SSCC) = $1,350 remaining for employee to contribute.
Contact Information
If you have HSA questions regarding funds available, covered products or services, or if you need a replacement card you will need to contact Optum Bank at 1-800-791-9361.
