Savings and Spending Accounts
Enrollment changes are done by utilizing Workday. You are provided the opportunity to make changes to your benefits once a year at annual open enrollment. Look for a task in your Workday inbox in November to begin the process.
Health Savings Accounts
A Health Savings Account (HSA) is a tax-free savings account that works with the Cigna HDHP to help you pay for the cost of out‐of‐pocket health care and prescription medication expenses. You take the money you would have paid for higher health insurance premiums and use it to pay for qualified medical expenses or save it and let it grow from year to year.
You should know:
- Your HSA money, including all the money CHOC contributes, is always yours. You won’t lose it if you don’t spend it, change jobs, retire or change health plans
- You never pay taxes on withdrawals for qualified medical expenses
- Your money earns interest and you don’t pay taxes on the interest earned
- Your contributions are tax-free and reduce your overall taxable income
- You can change your contribution to the HSA any time during the year
You are eligible to have an HSA if you are:
- A U.S. resident
- Enrolled in CHOC’s High Deductible Health Plan
- Not covered under another medical plan that is HSA compatible
- Not enrolled in Medicare
- Not eligible to be claimed on another person’s tax return
- Not active in the military
Your HSA Account
- After enrolling in an HSA, visit Health Equity to establish your HSA account
- Integrated account and investment management platform on healthequity.com
- 24/7 access to statements and tax forms
CHOC will fund $500 for individual coverage and $1,000 for family coverage into your HSA account annually. This will be contributed into your HSA account in equal quarterly amounts. Your annual amount will be prorated if your benefits become effective after January 1.
HSA Contribution Limit
- Annual Single Contribution Maximum: $3,850 (includes CHOC $500 HSA contribution).
- Annual Family Contribution Maximum: $7,750 (includes CHOC $1,000 HSA contribution).
- Annual Catch-Up Contribution Maximum: $1,000 (For HSA participants who are 55 years or older)
Health Care FSA
You may participate in the Health Care FSA which reimburses medical, dental, vision, and orthodontia expenses. The minimum contribution per pay period is $1. The maximum annual contribution is $2,850. You will have until March 31 of the following year to submit for reimbursement expenses incurred in the current year. Any unused funds up to $570 at the end of the calendar year will rollover to the next calendar year and will be available for use.
Health care FSA resources
Dependent Care FSA
You may participate in the Dependent Care FSA which reimburses day/night care expenses for qualifying dependents which include 1) children under the age of 13 who qualify as dependents on your federal tax return or 2) spouse or dependents of any age who are physically or mentally unable to care for themselves and who qualify as dependents on your Federal tax return. The minimum contribution per pay period is $1. The maximum contribution is $5,000. Any unused contributions in your FSA account will be forfeited. You will have until March 31 of the following year to submit for reimbursement expenses incurred in the current year.
How FSAs work
- During the new hire enrollment period for the current calendar year or the annual open enrollment period for the next calendar year, you decide how much you want to contribute to an FSA
- Each pay period, the money is deducted before taxes are withheld in equal increments from your pay and contributed to your Health Care FSA and/or Dependent Care FSA
- You will receive a Visa debit card which you may use to pay for an eligible expense. Keep your receipts and necessary documentation to support your transactions as you must provide this documentation to Health Equity.
- For eligible expenses which cannot be processed by the debit card, go online to file a claim electronically and upload a picture of your receipts.
- To see a list of eligible expenses or to monitor your account, visit your account online
Dependent Care FSA Resources