Each pay period ARHS will fund a savings account for you that can be used to pay for qualified medical expenses not covered under your health insurance benefits. You are also encouraged to add to your HSA with regular payroll deductions. The money you save to your HSA is tax-free and rolls over each year. See the chart below for the amount ARHS deposits into your HSA account annually, and the amount that you are able to contribute to reach the maximum dollar amount allowable by the IRS in 2018.

NOTE: While the Affordable Care Act allows parents to add their adult children (up to age 26) to their health plans, the IRS has not changed its definition of a dependent for health savings accounts. This means that an employee whose child aged 24-26 is covered on her HSA-qualified health plan is not eligible to use HSA funds to pay that child’s medical bills.

You are not eligible for an HSA if any of these criteria apply:

  1. Your spouse has a Flexible Spending Account that can be used for your medical expenses.
  2. Participation in any type of Medicare, Tricare or Tricare for life, makes you ineligible to contribute to an HSA.
  3. You are claimed as a dependent on someone else’s tax return.
  4. You are not enrolled in the CDHP.

Medicare, Social Security, and Your HSA

MEDICARE: Will you be turning 65 soon? If you have an HSA it is important to plan ahead and understand how enrolling in Medicare will affect your HSA. By enrolling in any type of Medicare (Parts A, B, C-Medicare Advantage, D, or Medicare Supplemental Insurance-Medigap), you can no longer contribute to your HSA. The month you enroll in Medicare, all contributions to your HSA must stop.


Important:  If you delay enrollment in Medicare when you are first eligible, you must enroll when you lose your current employer health insurance coverage.  In addition, if you do not take Medicare when you first qualify, you must take special precautions if and when you do decide to collect Social Security benefits (either while working or when you retire). You need to be sure to stop all contributions to your HSA up to six months before you collect Social Security. This is because when you apply for Social Security, Medicare Part A will be retroactive for up to six months (as long as you were eligible for Medicare during those six months). If you do not stop contributing six months before you apply for Social Security, you may incur a tax penalty. You may request a “correction” for any funds that were incorrectly contributed in the years which the contribution was made.  Contact HR for more information.


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