Tax-Free Health Savings For You

Health Savings Account 2021


All active, benefits-eligible employees enrolled in Basic Health are also enrolled in, and must be eligible for, a Health Savings Account (HSA). HSA funds can be used for eligible health care, prescription, dental, and vision expenses. HSA funds roll over each year and are yours to keep for future health care costs.

If you did not enroll in the Basic Health plan option, you can review these options.

Changes

There are no changes to Health Saving Account contributions for Plan Year 2021.

2020 elections for FSAs and HSAs will NOT automatically carry over to 2021.

Action Items

  • Re-Elect Your HSA in Workday
    • To continue your HSA, you must re-elect the program for 2021 during Open Enrollment 
    • If you do not re-elect and you had an HSA in 2020, your benefit will be elected, with employer contribution, but with $0 employee contribution 
    • You can add your employee contribution at any time in Workday 
  • Sign Your HSA Affidavit
    • If you are enrolling in Basic Health for the first time, don't forget to sign the HSA Affidavit, which will show up as an additional action item in your Workday inbox
    • Even if you do not want to contribute to an HSA, you must sign and return the affidavit so UVA can deposit its employer contribution. You will be moved to Value Health if you do not.
  • Spend 100% of FSA Funds Before December 31, 2020
    • If you currently have a health care FSA and are switching to Basic Health with an HSA, you must deplete 100% of any remaining funds in your FSA  before December 31. If you do not, your HSA will not be set up until April and you will miss out on any contributions you would like to make. 
  • Complete the Banking Forms
    • After enrolling in Workday for your HSA, complete the banking form that will go to Chard Snyder, the company that administers UVA’s HSAs, FSAs, and Dependent Daycare Reimbursement Accounts
    • Contributions are accepted into new HSAs the month after the account is opened by Chard Snyder
      • Go to www.chard-snyder.com and click on “Login” 
      • Under “Employees,” click on “Access your FSA, HRA, HSA Advantage, TRP accounts”
      • Under “New User?” click on “Create your new username and password”
      • Follow the prompts to create your username and password. It will ask for your social security number or Employee ID (found on your UVA ID card), so have that information handy.
  • Reminder: Anyone with a PO Box as their home address in Workday will have their request to open a health savings account rejected by Chard Snyder. It is a Patriot Act requirement to have a physical address on file before the HSA can be opened. Please verify your contact information contains your physical address within workday during Open Enrollment. 
  • Listen to the HSA/FSA Podcast to learn more about the difference between HSAs and FSAs.

HSA Highlights

  • Used for eligible health care, dental, and vision expenses
  • Balances roll over each year and accrue interest; you get to keep the balance even if you leave UVA
  • Both employees and employers can make pre-tax contributions up to the IRS annual limit. For those age 55 and older, there is an additional catch-up amount allowed.
  • Contributions are accepted starting the month after the bank opens the account. Funds become available after deposited, by the third bank day after payday.
  • Can be used with a dental/vision-only Limited Flexible Spending Account (LMT)
  • During your initial Basic Health enrollment, you can complete banking forms in order to allow employer/employee deposits (Additional info may be needed to do this. If so, you’ll be contacted and given next steps)
  • Once your HSA has a balance of $1,000, you may invest it in mutual funds; any growth from the investment is tax-free, so long as it is used on eligible medical expenses (You can refer to HSA Instructions in the resources below for details on what is considered eligible)

Eligibility

  • Who is eligible?

    All active, benefits-eligible employees enrolled in Basic Health are able to have an HSA. View the HSA eligibility grid. You must be eligible for an HSA in order to enroll in Basic Health. 

    You are eligible for an HSA if:

    • You are not a wage employee
    • You do not hold a J1 visa
    • You are not enrolled in Medicare or Medicaid, or are listed as a dependent on someone else’s tax return
    • You, or your spouse, do not have a balance in a health care FSA, are part of a FSA grace period, or your plan year is not over
    • You have not received healthcare benefits from the Veterans Administration (TRICARE) within the last 3 months
    • You do not have a spouse or parent enrolled in a health care plan (including a Health Reimbursement Account) that provides you benefits before meeting the annual IRS minimum deductible
    • You have not already contributed the annual federal limit to another HSA, Medical Savings Account (MSA), or HRA in the same calendar year
  • Switching from an FSA to an HSA

    If you are switching from Value Health or Choice Health to Basic Health and you have an FSA, then you will be closing your FSA. You will need to have a balance of $0.00 in your FSA by January 1, 2021 to open your HSA. Otherwise:

    • Your HSA cannot be opened, and you will not be able to make employee contributions until April 1, 2021
    • Deposited funds will become available for use on the third bank day after payday
    • You will not be able to use money in your account to cover any expenses incurred prior to April 1, 2021

    For HSA eligibility rules and timelines, visit the full Health Savings Account webpage.

  • Limited Flexible Spending Accounts

    If you are enrolled in a Health Savings Account, you are not eligible for a Full Healthcare Flexible Spending Account, but you can enroll in a Limited and/or Dependent Daycare Flexible Spending Account to maximize your savings. Learn more about a Limited Flexible Spending Account.

2021 Contributions

Depending on your employee type, UVA may contribute money to your HSA to help offset the higher deductible. You can use HSA dollars to pay for eligible medical, dental, and vision expenses.

  • Employer Contributions

    Depending upon your employee type, the University may contribute to your HSA.

    • Employee only coverage in Basic Health receives a $1,000 annual contribution from UVA
    • Coverage for employee + dependents in Basic Health receives a $1,500 annual contribution 

    Currently, UVA contributes money to open HSA accounts in the UVA Health Savings Account Program for permanent full- and part-time benefits-eligible Academic and Medical Center employees who are enrolled in the UVA Health Plan's Basic Health plan option. Wage employees enrolled in Basic Health are not part of this population. These funds roll over from year to year and are yours to keep and use for eligible expenses even if you switch to another UVA Health Plan option or leave the University.

    The annual employer contribution from UVA will be prorated in the following instances:

    • New hire enrollments and employees who are newly eligible for benefits
    • Employees who have delays in opening their HSA accounts (contribution will be provided the month following account activation with Chard Snyder)
    • UVA employer contributions will not change for any employee who gains or loses a dependent in the same calendar year
  • Individual Contributions

    You may choose to contribute to your HSA, though you are not required to do so. Employee contributions made by payroll are deducted before taxes. Each year, the IRS sets a contribution limit. This limit includes employer and employee contributions and is per household.

    • If electing to make an employee contribution, the minimum per year is $120
    • You and your employer can contribute a maximum of $3,600 for employee only, or $7,200 for employee + dependents. These are pre-tax dollars reserved for health care expenses and carry over beyond your retirement.
    • Those age 55 and older may make an additional catch-up contribution of up to $1,000 per year

    Keep in mind, the limits above includes employer and employee contributions.

    For example, You are under 55 if you want to contribute the maximum of $3,600 to your HSA and are eligible to receive $1,000 in employer contributions, you would elect $2,600 as the employee contribution, to meet the maximum IRS limit for the year of $3,600. 

  • Managing Contributions

    Funds are sent to your Chard-Snyder account following your first benefits deduction payroll for 2021.

    Balances roll over each year and accrue interest, and you keep the balance even if you leave UVA.

    Once you have a balance of $1,000 in your HSA, you may invest it in mutual funds; any growth made from the investment is tax-free as long as it is used on eligible medical expenses.

Enroll in Workday

  • To review and elect your benefits in Workday

    • Navigate to Workday
    • In your Workday Inbox, click on the message titled "Open Enrollment Change: [Your Name] on 01/01/2021"
    • Follow the instructions to navigate through each part of the Workday Open Enrollment screens:
      1. Modify medical, dental, vision benefits, if desired
      2. Add or drop dependents, if applicable (adding a spouse requires spousal affidavit to be completed before finalizing your benefits elections). Confirm social security numbers for dependents.
      3. Elect/waive Health Savings Account and Flexible Spending Account
      4. View insurances and long-term disability
      5. Confirm or change beneficiaries for life insurance
      6. If you are not ready to submit, back up one page using your "back" arrow in your browser, and select "Save for Later"
      7. When you are ready to submit, electronically sign at the bottom of the last page and press the SUBMIT button
      8. Workday does not currently offer the option to confirm your elections in writing, so after you submit your elections, it is a good idea to print a copy of your elections confirmation for your records. This will save a PDF of the document, which you can print or save.
      9. Watch for additional emails in your Workday Inbox related to post-Open Enrollment action items you made need to take
    • The following Workday Job Aids and training video offer additional detailed instructions:

     

  • If you Change Your Mind on an Open Enrollment Choice You Made and Open Enrollment Has Not Closed

    You can make changes to your elections as long as the Open Enrollment period is open, even after you have submitted your elections.

    1. From the Benefits app in Workday, click on "Change Open Enrollment"
    2. You will be making changes to what has been previously submitted. Any changes made will need to be resubmitted. If you do not resubmit, the changes will be deleted and the previous submission will remain in effect.
    3. Move through the same screens to elect or waive coverage
    4. Once changes are complete, electronically sign at the bottom of the last page and press the SUBMIT button
    5. Print the new confirmation of benefits elections
  • Open Enrollment Workday System Walk-Through

    Watch this short video that gives step-by-step instructions for navigating the Open Enrollment screens in Workday.

FAQs - HSAs

  • Help me understand the Health Savings Account and Flexible Spending Account

    All active, benefits-eligible employees enrolled in Basic Health are able to have a Health Savings Account (HSA). Funds in your HSA can be used for eligible health care, dental, and vision expenses. Funds in these accounts roll over each year and are yours to keep for future health care costs.

    If you are enrolled in a Health Savings Account, you are not eligible for a Full Healthcare Flexible Spending Account, but you can enroll in a Limited and/or Dependent Daycare Flexible Spending Account to maximize your savings.

    A Flexible Spending Account (FSA), makes it possible for you to pay for certain expenses on a pre-tax basis, which makes your money go farther.

    Here are resources to help you learn more:

  • When will I receive my HSA funds after selecting Basic Health for the first time?

    After moving to Basic Health, you must complete banking forms that will go to Chard Snyder, the company that administers UVA’s HSAs, FSAs, and Dependent Daycare Reimbursement Accounts. Contributions are accepted into new HSAs the month after the account is opened by Chard Snyder. Sometimes Chard Snyder may request more information to open an account. Be sure to follow up on any requests to get your HSA opened in a timely manner.

    • UVA contributes either $1,000 (employee only) or $1,500 (employee plus) once your account is opened, and the funds will show up in your Chard Snyder account and on your second payslip in January 2021
    • If you were hired in December, you may not have your HSA funds available until February 2021
    • Funds deposited into your Health Savings Accounts will be available to spend three bank days after the payday when they are deposited. There are two ways to spend those funds for eligible expenses:
      1. Use your prepaid benefits card, the Benefits Card, at the time of purchase for eligible expenses
      2. Submit claims or make payments from your accounts online through the Chard Snyder website
  • How much should I contribute to my HSA?

    If you are enrolled in the Basic Health plan with HSA, you should contribute as much as you can afford, up to the annual maximum, since the HSA offers several tax advantages that make it an excellent long-term savings vehicle.

    At the very minimum, you should contribute enough to cover the average out-of-pocket costs that you will likely incur over the course of the year. This strategy makes it more likely that you’ll have the funds on hand to cover the medical care you will need. And, as bonus, if you end up with extra funds at the end of the year, you get to keep that money to cover future medical expenses – including in retirement. 

  • Does the HSA contribution limit include employer contribution?

    Depending on your employee type, UVA may contribute money to your HSA to help offset the higher deductible.

    You may choose to contribute to your HSA, though you are not required to do so. Employee contributions made by payroll are deducted before taxes. Each year, the IRS sets a contribution limit. This limit includes employer and employee contributions and is per household.

     

  • Why is my physical address needed to open an HSA?

    Anyone with a PO Box as their home address in Workday will have their request to open a health savings account rejected by Chard Snyder. It is a Patriot Act requirement to have a physical address on file before the HSA can be opened.

    Please verify your contact information contains your physical address within workday during Open Enrollment.

Enroll in Workday

  • To review and elect your benefits in Workday

    • Navigate to Workday
    • In your Workday Inbox, click on the message titled "Open Enrollment Change: [Your Name] on 01/01/2021"
    • Follow the instructions to navigate through each part of the Workday Open Enrollment screens:
      1. Modify medical, dental, vision benefits, if desired
      2. Add or drop dependents, if applicable (adding a spouse requires spousal affidavit to be completed before finalizing your benefits elections). Confirm social security numbers for dependents.
      3. Elect/waive Health Savings Account and Flexible Spending Account
      4. View insurances and long-term disability
      5. Confirm or change beneficiaries for life insurance
      6. If you are not ready to submit, back up one page using your "back" arrow in your browser, and select "Save for Later"
      7. When you are ready to submit, electronically sign at the bottom of the last page and press the SUBMIT button
      8. Workday does not currently offer the option to confirm your elections in writing, so after you submit your elections, it is a good idea to print a copy of your elections confirmation for your records. This will save a PDF of the document, which you can print or save.
      9. Watch for additional emails in your Workday Inbox related to post-Open Enrollment action items you made need to take
    • The following Workday Job Aids and training video offer additional detailed instructions:

     

  • If you Change Your Mind on an Open Enrollment Choice You Made and Open Enrollment Has Not Closed

    You can make changes to your elections as long as the Open Enrollment period is open, even after you have submitted your elections.

    1. From the Benefits app in Workday, click on "Change Open Enrollment"
    2. You will be making changes to what has been previously submitted. Any changes made will need to be resubmitted. If you do not resubmit, the changes will be deleted and the previous submission will remain in effect.
    3. Move through the same screens to elect or waive coverage
    4. Once changes are complete, electronically sign at the bottom of the last page and press the SUBMIT button
    5. Print the new confirmation of benefits elections
  • Open Enrollment Workday System Walk-Through

    Watch this short video that gives step-by-step instructions for navigating the Open Enrollment screens in Workday.

I found Open Enrollment the easiest it's ever been. I appreciated the fact that the Workday Open Enrollment page would not allow me to make a mistake. If I opted for something that did not mesh with other choices, it stopped me. I really appreciated all the effort that went into making this year’s Open Enrollment so much easier to navigate. Kathy Collier, Administrative and Office Specialist III & Fellowship Coordinator for Pediatric Critical Care

Having trouble finding what you’re looking for?

We strive to make the information on every webpage clear and easy to find. Please let the HR Communications team know if you're having trouble finding what you're looking for, so we can improve your experience on this page in the future. 

For non-website questions or concerns about benefits and Open Enrollment, please contact the HR Solution Center by phone at 434.243.3344, or by email at AskHR@virginia.edu.

For previous Open Enrollment email communications, visit the Open Enrollment Communications Archive webpage.