Health Savings Account
NEW: HSA Central
Central Bank of the Midwest Health Savings Accounts (HSA) have transitioned to a new platform called HSA Central. Please click the card image below for additional information.
FOR QUESTIONS ABOUT TRANSACTIONS, DENIALS, BALANCES, OR ASSISTANCE WITH ACCESSING YOUR ACCOUNT ONLINE OR VIA THE APP PLEASE CALL HSA CENTRAL CONSUMER SUPPORT AT:
HSA customers converting to HSA Central on or after 7/22/19 will need to establish their HSA Central login
credentials for Online Access and can then download and login to the HSA Central Mobile App. Click here or above for instructions to set up your new HSA Central login.
HSA Account Features
Lee's Summit R-7 is pleased to offer the option of a health savings account (HSA) to go along with our high deductible health plans (HDHP). The lower premium on our HDHP plans even allow the District to make a monthly contribution into your HSA! District and Employee contributions can be made only into Central Bank of the Midwest HSA accounts.
Why Might an HSA be the Right Choice for You?
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It saves you money. For individuals with few regular health expenses, paying a traditional health plan premium can feel like throwing money out the window. HDHPs come with much lower premiums than traditional health plans, meaning less money gets deducted from your paychecks. Plus, HSAs are basically “cash” accounts, so you may be able to negotiate pricing on many medical services.
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It’s portable. Even if you change jobs, you get to keep your HSA!
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It’s a tax saver. Contributions to your HSA are made with pre-tax dollars. Since your taxable income is decreased by your contributions, you pay less in taxes.
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It allows for an improved retirement account. Funds roll over at the end of each year and accumulate tax-free, as does the interest on the account. Also, once you reach the age of 55, you are allowed to make additional “catch-up” contributions to your HSA.
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It puts money in your pocket! You never lose unused HSA funds. They always roll over to the next year.
* Please note: State laws differ. Contributions made to your HSA may not be deductible from state income taxes.
Am I Eligible for an HSA?
Per IRS regulations, you must be covered by a Qualified High Deductible Health Plan, such as the District’s BlueSelect Plus or Preferred Care Blue HDHP, in order to make or receive contributions to a Health Savings Account (HSA).
- You can be claimed as a dependent on someone else’s tax return,OR
- You have other medical insurance coverage which is a traditional medical plan or any other non-Qualified medical plan, OR
- You have medical coverage provided by TriCare, Medicare
or Medicaid, OR - You have been in receipt of non-preventive care benefits from the Department of Veteran’s Affairs (VA) or one of its facilities, including prescription drugs, in the prior 3-month period, you are excluded from contributing or receiving contributions the next 3 months (NOTE: Hospital care or medical services for a service connected disability will not affect your HAS eligibility), OR
- You or your spouse participate in a Section 125 Medical Flexible Spending Account (FSA). You are considered to be a ‘‘beneficiary’’ of your spouse’s Medical FSA even if you do not plan to run your expenses through it. (NOTE: There is no restriction to participating in a Section 125 Dependent Care Account, Limited Flexible Spending Account or sheltering premium payments for medical, dental, vision, and life insurance.),OR
- You or your spouse are covered under a Health Reimbursement Arrangement.
If you are enrolled in a District Health Reimbursement Arrangement (HRA) or Section 125 Medical Flexible Spending Account (FSA-Medical) for 2018 and enroll in a Health Savings Account (HSA) for 2019, please contact the District’s Benefits Coordinator at (816) 986-1048.
If one or more of these restrictions disqualifies you from opening up a Health Savings Account, the District contribution will be made to a Health Reimbursement Arrangement (HRA) instead.
If you open and contribute to an HSA and then later become ineligible, please contact the District's Business Services Department at (816) 986-1000 or by email at benefits@lsr7.net.
How to Open a Health Savings Account
The District will make contributions only to Central Bank of the Midwest HSA account holders.
You may visit any Central Bank of the Midwest location
You may contact the District’s Business Services Department at (816) 986-1000 or by email at benefits@lsr7.net.
How Much Can I Contribute?
You also have the opportunity to add additional money to your HSA through a pre-tax payroll deduction. Contributions into an HSA are tax-free, but are limited by the IRS.
For 2020 the HSA Contribution Maximum is:
$3,550 for those enrolled in a Qualified HDHP as individuals
$7,100 for those enrolled with dependents. The limit of $7,100 is per family. Therefore, if both spouses contribute to their respective HSAs, they cannot exceed combined contributions of $7,100.
The annual contribution the District makes on your behalf must be included in these limits. If you’re age 55 or older, you may make an additional $1,000 “catch-up” contribution.
Please note, HSA Contributions are prorated, so you are eligible to contribution 1/12 of the annual maximum for each month you are eligible and enrolled in a qualified plan.
HSA Contributions can be changed at any time.
To request a change to your HSA contribution amount, visit Employee Online and click on "Miscellaneous Payroll Deductions" from the menu on the left.
What Can I Do With The Funds In My HSA?
Your HSA contributions are initially deposited into an interest-bearing, FDIC-insured account at Central Bank of the Midwest. The FDIC-insured feature rewards you with graduating rates of interest as the balance in your Health Savings Account grows.
Central Bank of the Midwest offers the option to direct funds into pre-selected investments. Central Bank of the Midwest has agreed to waive the annual fee for invested HSA accounts for District employees with an HSA.
For more information regarding investment in your HSA, click here, or click on "Education" under "Accounts" and "Investments" when logged into your HSACentral account.
Expenses eligible for tax-free reimbursement through an HSA are defined by IRS Publication 502 and are available on-line at IRS.gov. Generally, any medical, dental and vision care expense that is considered tax deductible can be paid through your HSA. You can use your HSA to pay expenses for you, your spouse and your eligible children, even if they are not enrolled in a Lee’s Summit School District HDHP.
Health Savings Accounts have the added advantage of allowing additional expenses that are ineligible under a Section 125 Medical FSA:
- Post-age 65 retiree health insurance premium (Pre-age 65 retiree premiums are not eligible).
- Premium for Medicare Parts A, B & D (Medicare supplement plan premiums are not eligible).
- COBRA premium.
- Health insurance premium if you are receiving unemployment.
- Premium for certain Long Term Care policies (the premium for the Lee’s Summit R-7 UNUM Long Term Care plan is not eligible, but an individually purchased policy may be).
You will receive a debit card from Central Bank of the Midwest, the District’s HSA vendor, for your HSA. Click here for more information regarding spending your HSA funds.
Withdrawals from your HSA account are always tax-free when used to pay for qualified medical expenses.
Funds withdrawn for non-qualified expenses are subject to income tax PLUS a 20% penalty. The 20% penalty is waived once you reach age 65.
Funds may be withdrawn from an HSA only as they are deposited; in other words, you cannot “borrow ahead” on future contributions, but you can pay yourself back with tax-free dollars at a later date.
Documentation of your expenses is not required with requests for withdrawal, but you must maintain receipts in case of audit by the IRS. The account belongs to you, and proper use of HSA funds is your sole responsibility.
HSA Central debit cards are designed to approve point of sale transactions for HSA eligible expenses only. If an expense is denied at a retailer and you believe it to be an eligible expense, you may purchase the item using another payment method, and then reimburse yourself from the HSA. Be sure to keep the receipt and documentation in case of audit by the IRS.
HSA Central Features
Account Management: View the balance of each account, status of historical and pending activity from contributions and funding sources, plus bill pay and debit card transactions. Employees can even snap pictures of receipts with the dedicated HSA Central Mobile App.
Manage Funds: Complete online transactions such as online bill pay (to pay themselves or a doctor) and transfer from their bank account and contribute to their HSA plan.
Update Preferences: View and update personal data; sign up for and manage direct deposit and card status; enroll in text and e-mail communications.
Investing Tools: Easily plan and budget for future healthcare expenses, including managing HSA investments and setting a threshold on your cash account to automatically invest when funds reach a certain amount.
Controlled Expenses: HSA Central Debit Mastercard® helps prevent ineligible health care items from being purchased at retail, drug, and grocery stores.
