Your Guide To HSA's
Click here to view the booklet
We are happy to provide you with this digital booklet to help you better understand the High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). If you would like a hard copy of this booklet, contact the benefits coordinator.
If you are approaching or over age 65, there are important issues you should be aware of in regards to having and contributing to an HSA. Read the brochure below for more information.
Health Savings Accounts for People Approaching or Over Age 65
You must be enrolled in Anthem's Lumenos High Deductible Health Plan in order to have a Health Savings Account. A Health Savings Account (HSA) is a tax-exempt savings account used for the express purpose of paying qualified medical expenses.
You cannot enroll in both a full purpose Flexible Spending Health Reimbursement account (FSA) through your employer (or even through your spouses employer) and an HSA during the same period. The IRS considers this double dipping.
As long as funds are saved and spent for qualifying medical expenses, all contributions (including those made by the City) and withdrawals remain untaxed. Unlike the Flexible Spending Health Reimbursement account, the funds in an HSA are not subject to a "use it or lose it" policy. Anything you do not spend one year, carries over to the next year. Others may also contribute money to your HSA on your behalf. You can use money in your HSA to pay for your medical care including prescriptions, dental and vision expenses. You cannot enroll in a Flexible Spending Health Reimbursement Account if you are on a High Deductible Health Plan with a Health Savings Account, and vice versa.
Contribution amounts from the City into your Health Savings Accounts are as follows:
For All Employees except Water Union hired after 7/31/13 and PDSS Union hired after 10/15/2013:
- Single Person HDHP deductible is $2,000 and the City will contribute $1,500
- 2 or more Person HDHP deductible is $4,000 and the City will contribute $3,000
For Water Union hired after 7/31/13 and PDSS Union hired after 10/15/2013:
- Single Person HDHP deductible is $2,000 and the City will contribute $1,300
- 2 or more Person HDHP deductible is $4,000 and the City will contribute $2,600
IMPORTANT: For New Employees: The City Contribution will be prorated based on the number of months in the plan year that you will be in the High Deductible Health Plan; and the prorated amount will be funded into your HSA equally on a monthly basis for the remaining months of the first plan year of employment.
If you are enrolling in the Lumenos High Deductible Health Plans, you must open up a Health Savings Account. To do this, read, sign and date the applicable HSA employee verification letter listed below. Foward this form to HR Benefits.
The custodian of the City of Manchester's HSAs will be Avidia. To open your HSA account please contact the Benefits Coordinator.