A Health Savings Account or HSA is an account owned by the participant to pay for qualified health expenses. The funds carry over from year to year. The funds earn tax-free interest and are portable (meaning if you leave the City, you do not forfeit the contributions or interest earnings).

The HSA Benefits document helps you to understand the benefit and qualified expenses. The HSA summary includes additional details regarding IRS maximums and eligibility information.

The City makes deposits twice a year into eligible employees’ Health Savings Accounts depending on the type of health insurance policy the employee has elected. The maximum contribution for this account is set by the IRS annually. The minimum contribution per pay is $5 or $130 annually (26 pays.)

Employees choose one of two HSA administrators – First Financial Bank or Lively.

The City has partnered with Lively and First Financial Banks for our HSA administration. You will have your choice of either administrator at no cost to you.

Lively is an entirely online administrator. They issue a debit card, you access your balance and submit claims through their mobile app, and they allow you to invest your funds in self-directed or guided accounts.

First Financial Bank is a bank with local branches. First will also issue you a debit card, and you can speak to someone face-to-face if you have any questions.

An HSA is a true savings account, and you own it. This account and its balance goes with you even if you leave the City’s employment, and you won’t “lose” the money deposited into it even if you don’t use it.

In 2025, the City will contribute $1000 to the active Lively or First Financial HSA of an employee with Employee Only health coverage and $1500 to an employee with Employee + Spouse, Employee + Child(ren), or Family coverage. These contributions will be disbursed in two deposits – January and July.

The IRS maximum contribution to the Health Savings Accounts for 2025 is $4300 for Employee Only and $8550 for Employee + Spouse, Employee + Child(ren), or Family coverage. Please take in mind the City’s contribution when determining your per-pay deduction.

If you are 55 or older, you are eligible for a $1,000 a year “catch-up” option in addition to the IRS max.