Health Savings Accounts 2012

This Chase HSA video discusses various HSA details. While it refers HDHPs in general, it does not address Pima County’s specific HDHP. For HDHP information, see the Certificate of Coverage.

Effective January 01, 2011, Over-The-Counter (OTC) medications without a doctor's prescription will not be considered qualified medical expenses and therefore not reimbursable under federal guidelines.

Line of Credit
Once you have opened your HSA you may apply for a Chase Healthcare Line of Credit if you choose to.Chase Health Savings Account Healthcare Line of Credit

Health Savings Accounts (HSA) are available to employees that enroll in UnitedHealthcare's High Deductible Health Plan w/HSA. An HSA is a tax favored saving account. Employers and Employees may deposit funds into the account with a combined maximum that is regulated by the Internal Revenue Service.

2012 Annual Employee/Employer Combined Maximums are:
	Employee Only	$3,100
	Employer plus dependent coverage	$6,250
	Catch up provision for those over 55	$1,000

2012 Employee Bi-Weekly Maximums are:
	Employee Only	$80.77
	Employer plus dependent coverage	$163.46
	Catch up provision for those over 55	$38.46


Pima County will contribute funds each pay period to your HSA as follows:
	Employee Only	$38.46
	Employer plus dependent coverage	$76.92

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 once deposited belong to you, not the County. That means the funds can roll over from year to year if they are not spent and the funds will continue to be available to you even after your employment at Pima County ends. Please note, monies 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.

IRS Publication 969

IRS Publication 502

These funds are invested and earnings are also tax free. If funds are withdrawn for non-medical expenses, those monies are subject to a penalty as well as income tax.

In order to be eligible for an HSA, the employee must:

• be enrolled in a qualified high deductible health plan.

• have no other medical coverage (certain exceptions apply).

• not be enrolled in Medicare.

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

• not be enrolled in a Flexible Spending Account - except a "Limited Purpose" FSA. (A Limited Purpose FSA may only be used for dental or vision expenses, not covered by the health plan.

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 administrators (JP Morgan/Chase) don't scrutinize claims to ensure compliance. It is the taxpayer's responsibility. If you wish to enroll in the HSA, you will need to complete the JPMorgan/Chase HSA Enrollment in addition to enrolling within ADP / HR Benefits Solution .

Note: If you are an employee of Pima Association of Governments, Superintendent of Schools, Metro Water, Marana Water District or Southwest Fair Commission, you must contact your HR department for HSA instructions.

JPMorgan/Chase HSA Member Services - 1-866-566-7101

Chase HSA Online Service (existing HSAs only) – www.chasehsa.com

Going Green with Chase
The fee for paper statements is $1.00 per month. To save money and paper, sign up to receive electronic statements:

• Log on to www.chasehsa.com
• Click on "Customer Center"
• Click on "Manage Account"
• Choose "Electronic Only" for Monthly and Year End Summary Statements

JPMorgan/Chase HSA Enrollment

HSA Payroll Deduction Authorization Form - 2012

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Health Savings Accounts 2012