Health Savings Account (HSA)
The Health Savings Account (HSA) is an account that you can use to save money on a pre-tax basis for medical, dental and/or vision out of pocket expenses. Only employees enrolled in a high-deductible medical plan can participate in a health savings account.
Clermont County employees are permitted to set up their HSA at the financial entity of their choice. Keep in mind that some banks charge a monthly fee for this service, while most Credit Unions do not charge a fee; in additional, Credit Unions offer some great advantages when looking for investment opportunities.
To enroll: First complete your benefit elections on-line Employee Self Service (ESS); then print the HSA deposit form and take to the credit union or bank of your choice (must handle HSA accounts); return the completed form to the Auditor’s Office/Payroll.
Some of the advantages of saving funds using the HSA are:
- For 2026 anyone enrolled in a single high-deductible medical can save up to $4,400 tax free dollars in an HSA annually
- Anyone enrolled in an HDP medical plan with dependent coverage can save up to $8,750 annually
- Enrollees 55 or over can save up to an additional $1,000 per year.
- Clermont County contributes to the HSA for you; in 2026 the amounts are: $25 per pay for single HDP medical; $50 all other tiers.
IMPORTANT: The amounts listed above are the IRS maximums for 2025 and include all funds deposited to your HSA; you will need to subtract the County’s contribution from the IRS amounts allowed and then divide by 24 to determine the maximum employee contributions per pay.
- Employee contributions are pre-tax, which lowers the taxable income.
- Once deposited, the funds belong to the employee & remain in the employees account until used.
- When the employee leaves employment, the funds go with them.
- Account owner can access funds even if changing to a non-eligible medical plan, but no further contributions are permitted.
- Charges that occurred prior to the date the HSA was set up cannot be reimbursed.
People who are NOT eligible to participate in the HSA include:
- Employees covered by a traditional / copay medical plan through their spouse or other entity
- If your spouse has an active full healthcare (medical, dental & vision) Health Care Flexible Spending Account (FSA) plan.
- Employees enrolled in any Medicare plan
Health Saving Account & Limited-Purpose Flex Spending Account
HSA Video Link – Wellmark BCBS
Limited-Purpose Flex spending Account
Limited-Purpose FSA Eligible Expenses
What You Need to Know About HSAs and Medicare:
Once you are enrolled in any part of Medicare (A, B, or D), you are no longer eligible to contribute to your HSA under federal law. Medicare Part A may be retroactively effective up to six months to your enrollment date but not before your 65th birthday. This means if you delay enrollment, you may need to stop HSA contributions up to six months before your Medicare enrollment date to avoid tax penalties.
Continue to use Your HSA Funds
Even after enrolling in Medicare, you may continue to use your existing HSA balance to pay for eligible expenses such as:
- Medicare premiums (except Medigap plans)
- Copays and deductibles
- Prescription medications
- Other qualified out-of-pocket medical costs