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.
2023 HSA Transition to Fidelity
Beginning January 1, 2023, Fidelity will manage K-C’s HSA. This transition requires your action to make/receive HSA contributions in 2023. Because your HSA is an individually owned bank account, during enrollment you must provide consent for K-C to transition your HSA from Optum to Fidelity and to allow Fidelity to open a new HSA on your behalf. If you don’t provide consent:
- your HSA balance will remain with Optum and be subject to a monthly account fee,
- you won’t have an HSA with Fidelity,
- you won’t receive your 2023 HSA contribution from K-C (if eligible), and
- your 2023 HSA contribution election will be canceled.
Your HSA Contribution
You can also make your own contributions to your HSA, tax free, up to the IRS limits. The HSA contribution limit for 2022 is $3,650 for individuals and $7,300 for a family. The HSA contribution limit for 2023 is $3,850 for individuals and $7,750 for a family. The IRS limits include both your and K-C's HSA contributions. Also, if you're 55 years or older, you can contribute an additional $1,000 per year.
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 dollars 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 Optum Financial (formerly known as ConnectYourCare) and make additional contributions to your HSA from your personal bank account. Just remember the IRS limits.
Note: Contributions and earnings are subject to state (and local where applicable) income tax in California and New Jersey. Consult with your tax advisor to learn more.
Using the Money in Your Account
When you enroll in the CDHP Blue or Green, an HSA will be opened with Optum Financial. With your HSA, you can pay for eligible expenses in two ways:
- With your Optum Financial payment card, or
- Through Optum Financial's website or mobile app
For tools and information to help you manage your account, contact Optum Financial by:
- Visiting Optum Financial's website,
- 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 automatically access your future contributions early 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 current HSA annual election (your annual contribution + K-C’s contribution).
If you use HSA On Demand, 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 receive a notice from K-C and be required to repay the amount due.
Note: HSA On Demand funds are based on your election to make the contributions to your HSA for your personal tax purposes and are not a loan, additional contribution, or extension of credit by K-C. When you elected to contribute to your HSA, you agreed to make the annual contribution amount regardless of your employment status. Separated employees are required to pay such contributions to their HSA for funds previously used under On Demand and represent to the IRS in their tax return that such contributions have been made. K-C will utilize all recourse available to recover On Demand funds for which payment is not made.
How Other Coverage Outside of K-C Impacts HSA Eligibility
If you’re enrolled in TRICARE, Medicare, or a non-high deductible health plan outside of K-C, the IRS specifies that you cannot contribute to or receive company contributions into an HSA. There are also special eligibility considerations for Veterans Administration benefits. If you're ineligible for an HSA, you'll be offered a CDHP with Health Reimbursement Account (HRA) that meet IRS restrictions. Click here to learn more about HSA eligibility.