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Health Savings Accounts (HSAs)

If you elect the Consumer Choice plan with an HSA, you cannot use the Flex plan for qualified medical expenses. However, you are still eligible to participate in the Flex plan Dependent Care Spending Account and/or Adoption Assistance Spending Account.

HSA dollars are yours. HSA dollars can roll over from year to year and can be taken with you when you retire or leave the city for any reason.

When you have a qualified expense, you may pay it from your HSA using your debit card. You may also pay expenses out of your own pocket and save your HSA for future qualified expenses. The HSA is tax-advantaged, which means the money that goes into the account is exempt from federal income taxes - earns interest free of federal taxes, and is not subject to federal tax when you use it to pay for qualified medical expenses. HSA reimbursement is limited to the balance in your personal HSA account.

For example, if you have a bill for $200 and your account has a balance of $50, you will only be able to access $50 for payment. You are not required to substantiate expenditures from your HSA to the HSA administrator, but this information should be retained for tax purposes.

Note: According to IRS rules, you are not eligible to participate in an HSA if you are covered by another health plan or enrolled in Medicare.

Examples of Qualified Medical Expenses

  • Deductible payments
  • Copays and coinsurance
  • Vision exams and hardware
  • Prescriptions
  • Dental care and braces
  • Chiropractic or naturopathic services
  • Long Term Care Premiums
  • Medicare Part B, C & D Premiums (But NOT the premium you pay to the City as a retiree)
  • Other services provided by a qualified medical professional that may not be covered by the medical insurance. Cosmetic surgery is not covered.

Go online to the PeopleSoft self-service portal to enroll in benefits or view your elections.