What is a Health Savings Account (HSA)?

An HSA is a tax-advantaged savings account that allows employees to set aside money for qualified medical expenses. It can be used in conjunction with a High Deductible Health Plan (HDHP).  

Key Features

  1. Tax Benefits:

    • Contributions: Made pre-tax, reducing taxable income.
    • Growth: Interest and investment earnings grow tax-free.
    • Withdrawals: Tax-free for qualified medical expenses.

  1. Contribution Limits (2024):

    • Individual: $3,850
    • Family: $7,750
    • Catch-Up Contributions: Additional $1,000 for individuals aged 55 and older.

  1. Qualified Medical Expenses:

    • Includes doctor visits, prescriptions, dental care, vision care, and more.
    • Must meet IRS guidelines for what qualifies.

  1. Portability:

    • HSAs are owned by the employee and are not tied to an employer. Funds remain available even if you change jobs or retire.

  1. Roll Over:

    • Unused funds roll over year to year, unlike Flexible Spending Accounts (FSAs) that may have a “use it or lose it” rule.

Employer Contributions

Employer contributions are deposited the first business day of the new year. Those staff that will be retiring or resigning during the calendar year with have their amount pro-rated. If an employee retires or resigns after receiving the employer contribution into their HSA account, they will be required to reimburse the District the equivalent of 1/12 for each month in which they are not an employee of the Cornwall-Lebanon School District during the calendar year.

  1. Choice Blue QHDHP- Individual Coverage

    • 2025 – $1,300
    • 2026 – $1,300
    • 2027 – $1,300

  1. Choice Blue QHDHP- Two Person/Family Coverage

    • 2025 – $2,600
    • 2026 – $2,600
    • 2027 – $2,600

  1. Non-Choice Blue QHDHP- Individual Coverage

    • 2025 – $1,000
    • 2026 – $1,000
    • 2027 – $1,000

  1. Non-Choice Blue QHDHP- Two Person/Family Coverage

    • 2025 – $2,000
    • 2026 – $2,000
    • 2027 – $2,000

How to Make Contributions to Your Health Savings Account

Print and complete a Health Savings Account (HSA) form. Return the completed form to the Educational Services Center – Attention Payroll. Paperwork received by the 15th of the month will be effective the first pay of the following month.

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