JPM Chase is the Health Savings Account Administrator for EPISD

A Health Savings Account (HSA) is a special tax-advantaged medical savings account owned by an individual used to pay for current and future medical expenses. It combines high deductible health plans with a tax-free Health Savings Account that you and your covered family members can use to pay out-of-pocket expenses such as copays and deductibles, or leave unspent to grow as savings. Each year, the HSA can be funded up to the IRS maximum by you, your employer or both. You control the HSA, giving you the flexibility to decide how, when and where to spend your health care dollars and the HSA is "portable" which means you keep the funds even if you change health plans, take a new job or retire.

WHO IS ELIGIBLE FOR AN HSA?

In accordance with IRS rules, any adult can contribute to an HSA if he/she:

• Coverage under an HSA-qualified high deductible health plan.


• No other first-dollar medical coverage (other types of insurance such as specific injury or accident, disability, dental, vision or long-term care are permitted).


• Is not enrolled in Medicare.


• Cannot be claimed as a dependent on someone else's tax return.

WHICH TRS-ACTIVECARE PLANS QUALIFY FOR AN HSA?

TRS-ActiveCare 1-HD meets the IRS definition of a high deductible health plan for all coverage categories (Employee Only, Employee Spouse, Employee Children and Employee Family).

Participation in an HSA is voluntary. You are not required to participate in the HSA.

Health Saving Account Contribution Limits & IRS Guidelines

The following chart shows maximum HSA contributions for the following tax years.

	2014
Contribution Limit - Individual	$3,300
Contribution Limit - Family	$6,550
	2013
Contribution Limit - Individual	$3,250
Contribution Limit - Family	$6,450

NOTE:  The HSA follows a Tax Year (January 1 - December 31) for the purposes of IRS maximum contributions. EPISD does not oversee or manage the contribution maximum. It is the employee's responsibility to ensure that contributions for the tax year do not exceed the annual maximum based on individual circumstances and in accordance with the IRS rules governing a Health Savings Account.

Catch-up Contributions

Individuals age 55 and older, who are covered by an HDHP, can make an additional $1,000 catch-up contribution each year until he/she enrolls in Medicare. Individuals age 55 and over can make catch-up contributions directly through Internet Banking or by mailing a personal check.

Healthcare Reform and HSAs

On March 23, 2010, President Obama signed into law far-reaching healthcare financing legislation. The following is an overview of the impacts to Health Savings Accounts (HSA). The following are changes that occurred on January 1, 2011.

• Qualified Medical Expenses: As of January 1, 2011 you are no longer able to pay for over-the-counter medications from your HSA as a qualified medical expense. The new law removes over-the-counter drugs not prescribed by a physician from being paid from an HSA, FSA, or HRA on a tax-free basis.


• Non-qualified expense penalty: As of January 1, 2011, if you use your HSA funds for non- qualified expenses, you will face a higher penalty. The tax penalty for non-qualified HSA distributions is 20%.

How do I get started?

To establish an HSA account, you must take several steps:

1. You will need to know the effective date of coverage under the TRS-AC 1-HD or the TRS-AC 1 plan options.


2. You will need the following two items to enroll online with Chase:
   • HSA Enrollment Id: 18539298
   • Verification Code: 211
   
   Click on the link to establish an account with JPM Chase “Online Enrollment LINK”


3. Once you have received confirmation that your account with JPM Chase has been set up, you will need to complete the EPISD/Chase Health Savings Account Authorization for Payroll Deduction Form in order for EPISD to begin payroll deductions.

Health Savings Accounts have tax and legal ramification. Nothing herein should be construed as legal or tax advice.