Corrections to HSA contributions

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In February 2020, about 3,000 SEBB subscribers enrolled in the UMP High Deductible health plan received a $50 SmartHealth wellness incentive contribution to their health savings account (HSA) from the Health Care Authority (HCA) in error.

To correct this, HCA will recover the overpayment to these employees’ HSAs by decreasing the employer contribution by $25 in February and $25 in March. For the employer contribution, these HSA enrollees will receive either:

  • $6.25 in February and $6.25 in March (subscriber-only account), OR
  • $37.50 in February and $37.50 in March (subscriber and one or more dependents enrolled on the account).

The regular employer contribution amounts will resume in April 2021. No further adjustments are needed for the employees’ HSA contributions as a result of this error.

We mailed a letter on February 12, 2021 to these employees explaining the error, and how the HCA will correct it. HCA has also taken steps to prevent any such errors in the future.

You will not need to revise these employees’ 2020 W-2s. The 2021 reporting from HCA will show the lower employer contribution amounts for these employees’ 2021 W-2s.

If your employees have questions about their account activity, they can call HealthEquity (the HAS administrator) at 1-844-351-6853. If they have questions about HSAs and their taxes, please direct them to consult with their tax advisor.

In 2020, HealthEquity received a $50 contribution to your health savings account (HSA) from the Health Care Authority (HCA), on behalf of your employer, in error.

The HCA, which administers the School Employees Benefits Board (SEBB) Program, will recover this overpayment by reducing the amount of your employer’s contributions by $25 per month for February and March. The HCA has taken steps to prevent any such errors in the future.

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