State Health Plan Savings Plan members can contribute to a Health Savings Account, or HSA. An HSA helps you get the most out of your health plan by reducing your taxes while saving for future medical expenses. An HSA is essential to help you prepare for your health expenses.
- Pay for out-of-pocket medical expenses, such as deductibles and prescriptions.
- Carry over all funds from one year to the next.
- You own the account and keep it if you leave your job or retire.
- While there is an annual contribution limit, there's no limit to how much you can save in your account.
- Once your account balance reaches $1,000, you can invest funds to earn investment income tax-free.
- Use the Online Bill Pay feature to pay your medical bills or reimburse yourself.
- Pay for eligible healthcare items with your debit card in-store, online or at your doctor.
2023 Contribution limits
Your health coverage level determines your contribution limit.
- $3,850 for self-only coverage;
- $7,750 for family coverage; and
- Additional $1,000 catch-up contributions for members ages 55 and older.
Limited-use Medical Spending Account
If you have an HSA, you can enroll in a Limited-use Medical Spending Account (MSA) to pay for dental and vision care expenses. Doing so allows you to save your HSA funds for future medical expenses.
You can enroll in an HSA anytime throughout the year. To contribute money pretax through payroll deduction, you must enroll in an HSA through MyBenefitsexternal link, opens in a new tab. HSA Central will automatically set up the bank account based on enrollment information from PEBA. You will receive a welcome email from HSA Central with instructions on how to fully open the account once it is set up.