Health Savings Accounts
State continues to contribute to Health Savings Account
The state will continue to contribute the same amounts to your HSA in 2023. The initial contribution will be made on your January 4, 2023, paycheck. Employees enrolled in a CDHP effective from January 1, 2023, through June 1, 2023, receive the full pre-fund amount. CDHPs effective after June 2, 2023, but before December 2, 2023, receive one-half of the initial contribution. The initial pre-fund contribution is based on the coverage type (single/family) that is effective January 1, 2023, or your first day of coverage in a state health plan during 2023.
| Plan | Initial Contribution | Bi-Weekly Contribution | Annual Employer Contribution |
|---|---|---|---|
| HSA 1 - Single | $562.38 | $21.63 | $1,124.76 |
| HSA 1 - Family | $1,124.76 | $43.26 | $2,249.52 |
| HSA 2 - Single | $393.90 | $15.15 | $787.80 |
| HSA 2 - Family | $787.80 | $30.30 | $1,575.60 |
If you wish to make a change to your Health Savings Account (HSA) mid-year please contact the Benefits Hotline.
The Benefits Hotline is available Monday through Friday 7:30 a.m. to 5 p.m.
By Phone: 317-232-1167 or 1-877-248-0007
By Email: SPDBenefits@spd.in.gov
The State of Indiana has partnered with UMB Healthcare Services as the HSA Provider. To receive the State’s contribution, you must have an open account with UMB. If you already have an account with UMB, you do not need to open another account. Deposits will be made to your existing account.
Information for employees electing a Health Savings Account for the first time:
Upon enrolling in an HSA within PeopleSoft UMB Healthcare Services will automatically create your HSA account. Please be on the lookout for a Welcome Letter from UMB. You should receive the letter within 7 – 10 business days from the Monday following your enrollment in PeopleSoft. The Welcome Letter will contain your account number and information for enrolling in UMB HSA Online Banking. Through Online Banking you will be able to:
- Sign up for eStatements
- Order additional debit cards
- Add beneficiaries
- Set up payees for bill pay
- Plus much more!
An HSA Debit Card will arrive in a separate mailing approximately 7-10 business days after the account is opened. Please follow the activation instructions included with the card.
If additional information is required to open an HSA, a request for information letter will be mailed. Please reply in a timely manner so the account can be opened quickly.
To use checks, employees will need to complete the form and submit it to UMB: UMB Check Form. Checks can be purchased online from a number of companies including Walmart and Costco. When ordering checks, you’ll need to have your account number and your routing number. If you need assistance locating that information, please call UMB Bank at 1-866-520-4472.
Resources:
Eligibility
As a reminder, to be eligible for an HSA you:
- Must be currently enrolled in an HSA-qualified health plan;
- May not be enrolled in any other non-HSA qualified health plan;
- May not have, or be eligible to use, a general purpose Flexible Spending Account (FSA);
- Cannot be claimed as a dependent on another person’s tax return;
- May not be enrolled in Medicare, Medicaid, HIP or Tricare.
View IRS Publication 969 for more information.
HSAs have a maximum contribution limit
Contributions are allowed up to the maximum statutory limit. The maximum annual contribution for 2023 is $3,850 for self-only policies and $7,750 for family policies. Individuals aged 55 and over may make an additional catch-up contribution of up to $1,000 in 2023.
Combined household contributions cannot exceed the family limit. The maximum includes the state’s contributions and any other contributions to your HSA.
| Plan | Coverage | IRS Maximums | State Contribution | Maximum Employee Contribution | Maximum Bi-Weekly | Maximum Employee Contribution Over 55 | Maximum Bi Weekly Over 55 |
|---|---|---|---|---|---|---|---|
| HSA 1 | Single | $3,850 | $1,124.76 | $2,725.24 | $104.82 | $3,725.24 | $143.28 |
| HSA 1 | Family | $7,750 | $2,249.52 | $5,500.48 | $211.56 | $6,500.48 | $250.02 |
| HSA 2 | Single | $3,850 | $787.80 | $3,062.20 | $117.78 | $4,062.20 | $156.24 |
| HSA 2 | Family | $7,750 | $1,575.60 | $6,174.40 | $237.48 | $7,174.40 | $275.94 |
