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  • Health Savings Account


    Benefit: Health Savings Account (HSA)  
    Description:
    • A Health Savings Account can be used to set aside pre-tax money to pay for qualified medical expenses
    • Pima County funds a portion of your HSA based upon level of coverage (Employee Only: $1,000 / Employee & Dependent(s) $2,000
    • Only available with the High Deductible Health Plan (HDHP)
    • You may contribute up to $3,500 (Single) or $7,000 (Family)
    • There is an optional catch-up option for participants 55 and over, you may contribute an additional $1,000
    • You own the account
    • Tax-free earnings through investment option
    • Tax-free withdrawals for qualified medical expenses

    For more information on HSAs and qualified medical expenses, refer to IRS publications 969 and 502.

     
    Eligibility: To qualify for a Health Savings Account (HSA), you:
    • Can not be covered under another medical plan
    • Can not have access to a medical FSA (except Limited Purpose FSA)
    • Can not be enrolled in Medicare/Tricare/Indian Health Care
    • Can not utilize the Veterans Affairs (VA) for non-service related conditions
    • Can not be claimed on another tax return
    • Domestic Partners are not typically eligible dependents for HSA and FSA
     
     Contributions: Pima County will make the following prorated bi-weekly HSA contributions based on HDHP w/HSA enrollment.  
    Level of Coverage
    County Funding
    (Bi-weekly)
    Employee
    Bi-Weekly Max.
    Annual Combined Max.
    Employee

    $38.46

     $96.15

    $3,500 

    Employee + dependent(s)

    $76.92

    $192.31

    $7,000 

    Catch up - 55 and over

    $0.00

     38.46

    $1,000 

     
      Since the IRS maximums are total amounts, you will need to factor in the County contribution when determining your allowable maximum contribution. The management of the HSA and additional related funding is the responsibility of the employee.

    The funds in this account belong to you, not the County. That means the balance will roll over from year to year if it is not spent and the funds will continue to be available to you even after your employment at Pima County ends. Please note, funds in the HSA will remain tax-free as long as they are used to pay for qualified medical expenses (including dental, vision, etc.). The interest earned is also tax free.
     
    Additional Information: Additional Resources: These funds may be invested and earnings are also tax free. If funds are withdrawn for non-qualified medical expenses, those funds are subject to a penalty as well as income tax.

    Since HSAs are the property of the employee (the taxpayer) it is your responsibility to manage funding amounts. There are several options available for funding your HSA, (lump sum payment, bi-weekly payroll deduction, transfers from IRA, etc.)  Pima County will deposit amounts based on your enrollment level and your payroll deduction authorization.

    You will need to manage all other details. In order to prevent tax consequences, it will be your responsibility to ensure that payment requests are for qualified medical expenses. Typically, HSA financial administrators (HSA Bank) don't scrutinize claims to ensure compliance. It is the taxpayer's responsibility.

    Pima County will pay the HSA administrative fee.

    IRS Publication 969
    IRS Publication 502 

    HSA Bank Customer Service: (800) 357-6246

     
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    Tucson, AZ 85701

    Phone: (520) 724-8464
    Fax: (520) 724-8150


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