Human Resources

This type of plan still allows you to participate in an HSA, and simply limits your FSA reimbursements to dental and vision expenses only (no medical).

The High Deductible Health Plan is administered by UMR. You can go to the website to search for providers, view claims, referrals and other benefit information. You can also download the UMR Mobile App. Download on the App Store or Google Play Store.

To be eligible for a Health Savings Account (HSA), you must be enrolled in a qualified High-Deductible Health Plan (HDHP).

A HDHP has a lower premium than conventional health plans, and you must meet the calendar year deductible, before the plan starts paying. Prescription drugs must be paid at contract price until the deductible is met.  HSA’s help pay for the medical expenses not covered by your HDHP— tax- free.

You can continue to use your account tax-free for out-of-pocket health expenses. When you enroll in Medicare, you can use your account to pay Medicare premiums, deductibles, co-pays and coinsurance under any part of Medicare. If you have retiree health benefits through your former employer you can also use your account to pay for your share of retiree medical insurance premiums; however, the coverage may not be a Medicare Supplement Policy. Medicare premiums for a dependent who has reached age 65 is not an eligible expense.

American Fidelity will send you a debit card to pay for your qualifying expenses. You can also submit for reimbursement through your online account with American Fidelity or through the mobile app, AFmobile.

No. Medicare participants are not eligible for the HSA.  If you had an HSA before you enrolled in Medicare, you can keep it; however, you cannot continue to make contributions to an HSA after you enroll in Medicare.

American Fidelity uses First Fidelity Bank, N.A. which has had FDIC insurance since July 1, 1981.

You are the "bookkeeper."  It is  your responsibility to keep track of your deposits and expenditures and keep all of your receipts (necessary if the IRS audits you). It is also your responsibility to adhere to the regulations governing HSAs and payment of qualified medical expenses. American Fidelity does allow the option to scan receipts into their system and will save them for you should you ever be audited.

Yes.  All employees, regardless of which medical plan they are enrolled in, participate in the same self-funded dental and vision insurance plans.  You can pay for your portion of dental (other than cosmetic) and vision services from your HSA or your limited purpose FSA.

In 2010, Health Care Reform Law extended health plan eligibility to children of the covered employee until the child turns 26 years of age, so you can cover your 25 year-old on your HDHP medical plan.  However, the HSA is subject to IRS rules and guidelines, and since their definition of dependent is “up to age 24 if a full-time student,” you are not able to use your HSA funds to pay for out-of-pocket medical expenses for that dependent, even though they may be covered on your HDHP for medical expenses.

Yes. Both the PPO Plan and the HDHP utilize the same network of providers. To search for providers, please visit www.umr.com and select the United Healthcare Choice Plus Network.

In most cases, you will not be able to use your HSA funds to pay expenses for your registered Domestic Partner per IRS rules and guidelines. Please seek the advice of a tax accountant.

You are not required to contribute to the HSA; however; it is a good way to save pre-tax dollars for medical expenses incurred in the future.  You can change/stop your contribution as often as you like via the Benefits and Payroll Tab in ESS.

Although it is not a requirement, Washoe County has agreed to fund a significant portion of the $2,600/individual and $3,200/family annual calendar year deductible in 2024.

All employees enrolled on the High Deductible Health Plan effective January 1, 2024 will receive a $2,250 contribution to their Health Savings Account if they are only covering themselves or a $2,500 contribution to their Health Savings Account if they are covering one or more dependents. Anyone hired after January 1, 2024, will receive a pro-rated contribution to their Health Savings Account based upon their benefit effective date. The money in your HSA is your money and you may keep any County contributions when you change jobs or retire.

Currently, there is no cost to maintain your bank account with American Fidelity.  Upon separation from employment or transfer to another Washoe County health plan, you will be responsible for the $2 per month fee as applicable.

Yes, if the expenses are qualified medical expenses.

You will need to spend all your FSA money by December 31, 2023 in order to contribute an HSA.  You do have the option of enrolling in Limited Purpose FSA if you are participating in the HDHP/HSA; however, the Limited Purpose FSA is for vision and dental expenses only.

You will still be able to enroll and participate in the dependent care FSA.

Flexible Spending Accounts (FSAs) allow you to contribute pre-tax dollars to an account managed by your employer. This money can be used for health care spending, but anything left over at the end of the year is forfeited. 

HSAs allow you to contribute pre-tax dollars into an account that is owned and managed by you, the employee. The money is used for health care expenses, but unlike an FSA, the unspent amount can remain in the account year after year and it stays with you in the event you terminate from your employer.

You will need to consider your options carefully. For more information, you can contact Health Benefits Staff by emailing at HR-Healthbenefits@washoecounty.gov. 

 

Yes. IRS regulations stipulate that in order to be eligible for a Health Savings Account (HSA), you must be enrolled in a qualified High Deductible Health Plan. 

IRS regulations for 2024 require the HDHP to have a minimum  deductible of $2,600 for individuals and $3,200 for families. The premium for an HDHP generally costs less than a traditional health care plan, so the money that you save can be put in your HSA. You own and control the money in your HSA and decisions on how to spend the money are made by you.

Since you are covered as individual employees by Washoe County, you will have a separate $2,600 annual deductible if both enroll in the HDHP/HSA. It may be more cost effective for one spouse to enroll in the HDHP/HSA with the $2,600 deductible ($3,000 deductible for family coverage) and the other spouse to enroll in the current PPO or Surest plan. Monies from the employee with the HSA account can be used for out-of-pocket medical expenses for family members regardless of whether or not they are on the same health plan.

No.  However, you are allowed to make a one-time transfer from an IRA to an HSA.  You are also allowed to rollover funds from an Archer MSA or an existing HSA to a new HSA.  We recommend that you seek advice from a financial expert before making any transfers or rollovers.

Yes, if you have tax-qualified long-term care insurance.  However, the amount considered a qualified medical expense depends on your age.  See IRS Publication 502 for the amounts deductible by age.

The IRS has set contribution limits of $4,150 for individuals and $8,300 for families for 2024. Individuals 55 and over may contribute an extra $1,000 to their HSA.

The County’s HSA are administered by American Fidelity, and employees can make pre-tax payroll deductions every pay period.  

The HSA is owned by the employee; therefore, the funds remain in the account.  The employee can choose to use the funds for qualified medical expenses or save the funds for future medical expenses.

The expenditure will be taxed, and for individuals who are not disabled or over age 65, subject to a 10% tax penalty.  It is your responsibility to report this information on your income taxes.

 The HSA contribution maximums are set up in payroll to not exceed the IRS limitations. If an employee’s contributions exceed the IRS limitation, the employee contribution amount will not be deducted from their paycheck.

If you try to use your debit card for an expense that exceeds the available balance, your card will simply be declined at the time of purchase.

In most cases, no. You can only use your HSA to pay health insurance premiums if you are collecting federal or state unemployment benefits, or if you have COBRA continuation coverage through a former employer.

You are responsible for that decision, and therefore should familiarize yourself with what qualified medical expenses are (at least as partially defined in IRS publication 502).  Also, keep your receipts in case you need to defend your expenditures or decisions during an audit.

 Yes. The High Deductible Health Plan with a Health Reimbursement Account (HRA) is another health plan option available to retirees.

Yes. The unused balance in an HSA automatically rolls over year after year.

No, the IRS does not allow you to have an HSA if your spouse’s FSA or Health Reimbursement Account (HRA) can pay for any of your medical expenses before your HDHP deductible is met.

Yes, if you are a veteran who has not retired from the military and is not enrolled in Tricare, you can enroll in the HSA/HDHP. The only exception is for veterans with service-related disabilities. The Internal Revenue Code was amended recently to allow veterans receiving VA medical care for service-related disabilities to fund an HSA.

Health Savings Accounts (HSAs) are another option when it comes to conventional health insurance. It is a tax-free savings account that gives you the power to decide how to pay for your medical care. You can pay for qualified medical expenses now or save for future medical expenses—all while earning interest on your money! Tax-free withdrawals can be made by the employee to pay for qualified medical expenses incurred by the employee, spouse, children or other dependents.