Important Information For Authorized Agents
One of the health insurance options available to state employees is a High Deductible Health Plan (HDHP). Employees enrolled in the HDHP receive a monthly employer contribution to a Health Savings Account (HSA) to help offset medical expenses. Employees may also contribute their own pre-tax dollars to their HSA for additional savings.
Important Information For Authorized Agents
One of the health insurance options available to state employees is a High Deductible Health Plan (HDHP). Employees enrolled in the HDHP receive a monthly employer contribution to a Health Savings Account (HSA) to help offset medical expenses. Employees may also contribute their own pre-tax dollars to their HSA for additional savings.
- Employers submit new participants’ enrollment information to NDPERS through Employer Self Service (ESS).
- Employees make their benefit elections through Member Self Service (MSS).
- NDPERS sends weekly enrollment information to its health insurance provider, Sanford Health Plan (SHP).
- SHP shares information with the HSA provider, currently HealthEquity.
- HealthEquity sets up the HSA on behalf of the participant.
- Participating employees must verify their identity by completing the HealthEquity Customer Identification Process (CIP).
- Employees who fail the CIP are notified by HealthEquity by mail or email.
- Contributions cannot be added to the HSA until the CIP is successfully completed.
Employer Contributions
Sent to the HSA provider on a delayed schedule. For example, employer contributions for the June coverage month will be deposited into the employee’s HSA by the end of July.
Employee Contributions
Sent to the HSA provider within 3-5 business days of NDPERS receiving the funds from the employer.
End of Year Contributions
- December employer contributions are applied to the tax year in which they are issued, but they are not deposited until January.
- Employee contributions withheld from December payroll are not received by NDPERS until January.
The IRS establishes annual limits on total HSA contributions. The combined employee and employer contributions may not exceed the IRS limits.
- NDPERS does not monitor employees’ total annual contributions.
- Participating employees are responsible for ensuring they do not exceed the IRS limits.
Any employer contribution that cannot be deposited because the employee has reached the annual limit is forfeited.
Employees can determine their maximum allowable employee contribution for the year using this formula:
IRS Annual Limit - Employer Contribution for the Year = Maximum Annual Employee Contribution
Employees may request a refund of excess contributions. The employee must have sufficient funds available in the HSA for the refund to be issued by NDPERS. If the funds have already been spent or moved to an investment account, NDPERS cannot access the money, and employers should not process a refund in this situation.