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HSA Contributions <br />Page 2 <br />HEALTH SAVINGS ACCOUNTS <br />Employees insured through the city's group policy may contribute pre-tax dollars from their paychecks into their HSA <br />accounts. These funds can be withdrawn tax-free to pay for qualified medical expenses. The maximum contributions <br />for calendar year 2017 are $3,400 for single employees and $6,750 for employees with family coverage. Although these <br />contribution limits are sufficient to cover expenses not paid for by HealthPartners, it can be difficult for employees to <br />set aside enough dollars to meet their deductibles. Only 7 of the 17 insured employees will receive a step increase next <br />year. The remaining 10 employees will receive a 2% cost of living increase. <br />STAFF RECOMMENDATION <br />To assist the employees in meeting their deductibles, the Finance Department is seeking City Council approval to <br />contribute funds into each insured employee's HSA in January. Contributions would be limited to those employees who <br />are renewing coverage or are beginning employment with the city. Staff is proposing $250 for employees with single <br />coverage and $500 for employees with family coverage. The total cost to the city treasury would be $7,250. These <br />funds have been included in the 2017 operating budget. <br />Staff recommends Council approve a motion to allow the Finance Department to make these contributions as per the <br />terms of this memo. <br />