PEBB HSA and CDHP FAQ

Consumer-directed Health Plans (CDHP)and Health Savings Accounts (HSA)

CDHPs offer a low monthly premium, balanced with a higher deductible and out-of-pocket maximum. However, members can use funds in their Health Savings Account HSA to pay for many out-of-pocket costs (including deductibles), or allow HSA savings to grow for future medical expenses. When you enroll in a CDHP, your employer or the PEBB Program contributes money into your HSA on a prorated basis. This will add up to $700.08 annually for a single subscriber, or $1,400.04 annually for a subscriber and one or more covered dependents. The entire amount is not deposited in the HSA on Jan. 1. If you are a single subscriber, your employer will contribute $58.34 each month in your HSA as long as you remain eligible for enrollment CDHP. If you have a dependent enrolled, your employer will contribute $116.67. Members may also choose to make tax-free contributions to their own HSA, up to IRS annual limits. To learn more call HealthEquity, the trustee for your HSA, at 1-877-873-8823.

Yes. Similar to an IRA, many HSAs let you choose to invest a portion of your account balance in stocks, bonds, mutual funds, CDs and/or other annuities. With your Kaiser Permanente WA CDHP, you can invest in pre-selected mutual funds after you reach a $2,000 balance in your account.

Yes, you can make a one-time rollover from your IRA into your HSA. However, you can’t roll money into your IRA from your HSA. Note that a rollover will count against annual contribution limits.

In 2018, the maximum annual contribution limits set by the IRS for an individual account is $3,500 and the maximum contribution for family coverage is $7,000. People ages 55 and older may contribute up to $1,000 more annually in addition to the limits above.

You may take that money with you wherever you go — it's your money and your account. If you're on Medicare or go to another employer that doesn't have a qualified CDHP, you can still use your HSA money to pay for co-pays and qualified medical expenses, but won't be able to make contributions to your HSA.

The money rolls over from year to year. You don't lose the money left in your HSA or the interest it's earned.

Yes, you can take the money out anytime tax-free and without penalty as long as it's to pay for qualified medical expenses. If you take money out for other purposes, however, you'll have to pay income taxes on the withdrawal plus a 20 percent penalty.

Yes, the money in your HSA can be used to pay for qualified medical expenses of any family member who qualifies as a dependent on your tax return. However, if the dependent isn't covered under your plan, their expenses won't be applied toward your deductible.

Yes, but if you do (and you are under age 65) you'll be taxed on the money you use and assessed a 20 percent penalty. Once you are 65, you'll be taxed for moneys used for nonmedical expenses, but won't pay the penalty.

Questions?

Kaiser Permanente has a dedicated Member Services number for PEBB members.

Speak with a representative Mon. – Fri. 8 a.m. – 6 p.m.

Call 1-866-648-1928

For Medicare Questions

If you are interested in a Medicare Advantage plan and want to speak with licensed Kaiser Permanente WA representative:

1-800-581-8252 (TTY 711)

For eligibility and enrollment questions:
Visit the PEBB website

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