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Spending Accounts

Important Update Regarding your Health Savings Account

The University will be increasing its contribution to the Health Savings Account (HSA) for employees covering family members, from $1,000 to $1,500 annually. The contribution for employees with single coverage will remain $750. The University’s contribution to the HSA will be now be “front loaded”, and will be fully deposited into employees’ HSA accounts in January 2020. For those hired after January 1, 2020, the employer contribution towards the HSA will be prorated based on the benefit effective date. 

What is a Health Savings Account?

The Health Savings Account (HSA) is essentially a bank account with PNC that allows you to save and pay for eligible healthcare expenses tax-free up to a certain amount.

Here is how an HSA works:

  • To open an HSA, you must be enrolled in an eligible high deductible health plan. (Note: HSA participants cannot participate in the Healthcare Flexible Spending Account.)
  • Employee contributions are tax-free and HSA balances can be rolled from year to year.
  • You can use the HSA to pay for "qualified medical expenses" to include medical, dental, vision and prescription expenses, as well as for qualified medical expenses for spouses and dependents, even if covered under another medical plan.

To be eligible for an HSA, an employee cannot be enrolled in Medicare Parts A or B. You can, however utilize an FSA if you are enrolled in Medicare Parts A or B.

In 2020, the IRS limit for contributions will increase to $3,550 for individuals and will increase to $7,100 for family coverage. Participants age 55 and older can contribute an additional $1,000 as a catch-up contribution.

For employees covering family members SJU will contribute $1500 towards the HSA and for those on single coverage SJU will contribute $750 towards the HSA. This amount will be "front loaded", and will be deposited into employees accounts in January 2020. For those hired after the first of the year, the SJU contribution will be prorated based on the benefit effective date. 

You can also use HSA funds to pay Continuation Coverage and long-term care insurance premiums, though health insurance premiums (including Medigap coverage) are not qualified.

HSA Savings:

  • Tax-deferred interest earnings may be accumulated in your account.
  • You can invest some of your HSA dollars in mutual funds once you meet the investment threshold.
  • There is no "use-it-or-lose-it" rule: funds remain in your account from year to year.
  • The account is yours and stays with you even if you change jobs, change healthcare coverage, become unemployed, move to another state or change marital status.
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Healthcare Spending Account

A Healthcare Spending Account is a type of Flexible Spending Account that allows employees to pay for qualified out-of-pocket healthcare expenses on a pre-tax basis.

Expenses that qualify include: medical insurance deductibles and co-payments and other expenses not covered by your medical, dental and vision care insurance(s). Enrollment in this plan is optional.

Each year or at the start of employment, an employee may elect the amount he/she wishes to contribute to the healthcare spending account. The annual maximum for 2019 is $2,700. Amounts are deducted each pay period before taxes.

Employees pay for eligible expenses and submit claims to the University’s third party administrator, Payflex. Reimbursement for eligible expenses is made by check or direct deposit. Information and forms for this benefit are available in the Office of Human Resources.

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Dependent Care Spending Account

The Dependent Care Spending Account is a type of Flexible Spending Account that allows employees to pay for qualifying dependent care expenses on a before-tax basis.

Expenses that qualify include: day care, preschool, summer camps and nonemployer-sponsored before or after school programs. Funds may be used for expenses relating to children under the age of 13 or incapable of self-care who live with the account holder more than half the year.

Each year or at the start of employment, an employee may elect the amount he/she wishes to contribute to the dependent care spending account. The annual maximum for 2018 is $5,000. Amounts are deducted each pay period before taxes.

Employees pay for eligible expenses and submit claims to the University's third party administrator, Payflex. Reimbursement for eligible expenses is made by check or direct deposit. Information and forms for this benefit are available in the Office of Human Resources.

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Commuter/Transit Spending Account

The Commuter Spending Account is a type of Flexible Spending Account that allows employees the option to order a transit pass, voucher or add funds to a fare card on a pre-tax basis.

Employees pay for eligible expenses and submit claims to the University's third party administrator, Payflex. Reimbursement for eligible expenses is made by check or direct deposit. Information and forms for this benefit are available in the Office of Human Resources.