Health Savings Account (HSA)
No matter which plan option you choose — Blue or Green — K-C contributes money to your HSA that you can use to pay for care today, or save for health care down the road. You can also contribute money to your HSA.
K-C's HSA Contribution**
If you’re enrolled in the Consumer Driven Health Plan (CDHP) Blue or Green with HSA as of January 1, K-C gives you:
- $700 in your HSA for Individual coverage,
- $1,400 for 2-Party, and
- $1,400 for 2-Party Plus.
*If you enroll in the CDHP Blue or Green with HSA after January 1, K-C’s contribution is prorated.
Your HSA Contribution
You can also make your own contributions to your HSA, tax free, up to the IRS limits. In 2018, the HSA contribution limit is $3,450 for individuals and $6,850 for a family—that amount includes the K-C contribution. Contributing to your account is easy and it’s tax-free. That means contributions come out of your paycheck before taxes are taken out, which lowers your taxable income and helps you save money for future health care expenses. And, when you spend those dollar on health care, they come out tax-free too.
You have total control over how much goes in and out of this account. You set the amount and can change the contribution at any time before November 2 at K-C Benefit Compass. You can even go to ConnectYourCare and make additional contributions to your HSA from your personal bank account. Just remember the IRS limits.
Using the Money in Your Account
When you enroll in the CDHP Blue or Green, an HSA will be opened with UMB Financial Corporation (UMB). Our HSA administrator, ConnectYourCare offers online tools and information to help you manage your account.
You can also pay for eligible expenses in two ways:
- With your ConnectYourCare payment card, or
- Through ConnectYourCare’s website or mobile app
For tools and information to help you manage your account, contact ConnectYourCare by:
- Visiting ConnectYourCare,
- Calling 844-594-1228, or
- Using their mobile app for smartphones.
Get an Advance with HSA On Demand
In the CDHP Blue or Green with HSA, if you're an active employee who has elected to contribute to your HSA, you can borrow against your future contributions with HSA On Demand . This way, you have the money you need to cover eligible expenses before the funds are actually deducted from your paycheck and deposited to your HSA, up to your advance limit (your annual contribution + K-C’s contribution).
If you use HSA OnDemand, your future HSA payroll deductions will automatically repay the advanced amount. If you reduce your payroll deductions or leave K-C before fully repaying the balance owed, you'll be required to repay the amount due and will receive a notice from K-C.
What Happened to My FSA Rollover?
Any funds, up to the $500 IRS rollover limit, will automatically be transferred to a Limited Use FSA at year end. Those dollars can be used to help cover out-of-pocket costs for dental and vision expenses in the following year.
Just remember to use any funds in your 2017 FSA over the $500 IRS FSA rollover limit before December 31, 2017. Then, be sure to submit all claims to ConnectYourCare by March 31, 2018. Use ConnectYourCare’s mobile app or go to ConnectYourCare.com for details or to submit claims. Call ConnectYourCare 24/7, 365 at 844-594-1228 if you need help.
K-C’s contributions to your HSA plus any contributions you make may not exceed the yearly maximum. Be sure to plan your contributions accordingly. The 2018 IRS maximum is $3,450 for individuals and $6,850 for a family.*
You can set aside an additional $1,000 if you're age 55 or older.
In addition, you cannot:
- Be enrolled in Medicare,
- Receive health benefits under TRICARE,
- Have received Veterans Administration (VA) benefits within the past three months,
- Be claimed as a dependent on another person's tax return, or
- Have a general purpose health care Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) or covered under your spouse's general purpose FSA or HRA. However, you can have a Limited Use FSA.
You may use your HSA to pay for eligible expenses for your legal spouse or legal IRS dependents, even if they are not covered under your CDHP.
The IRS defines legal dependents as those who are not yet age 24 in most cases. Please note this is a different age limit than the eligibility for other benefits.
*IRS limits include K-C’s HSA contribution.