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Health Savings Account (HSA) - Health Equity

Employees enrolled in the BCBS Saver's Choice HDHP may contribute pre-tax dollars from their paycheck and receive an employer contribution to their HSA to help cover health costs now, or in the future.

Employees can use their HealthEquity debit card to conveniently pay for medical, prescription drug, dental, vision, and over-the-counter expenses. For a list of qualified health care expenses, see IRS Publication 969.

City Employer Contribution:

$1,125 for single coverage

$2,250 for family coverage

Benefits of HSAs: Enjoy Tax Savings:

When you use your HealthEquity HSA account, you can enjoy tax savings in three ways: Pay for qualified health care expenses tax-free Contribute to your HSA tax-free Earn interest on unused HSA funds tax-free (once HSA reaches a certain amount).

Money left in your HSA at the end of each year rolls over to the next year, including the City’s contribution. You can save your HSA funds to use for your health care costs when you retire or leave the City. The money is yours to take with you. You can also use your HSA as another retirement vehicle: once you turn 65 years of age, funds may be used for non-medical purposes (regular income taxes apply).

You can start, stop, increase or decrease your HSA contribution at anytime throughout the year in eCHRIS.

2026 HSA Contribution Maximum

$4,400 for single coverage

$8,750 for family coverage

There is a $1,000 additional “catch up” amount for employees 55 or older.

Enrollment Information:
  • You must be enrolled in the BCBS Saver’s Choice medical plan to be eligible for the HSA. You are NOT automatically enrolled in the HSA when you elect the Saver’s Choice Plan — in order to receive the employee HSA seed you have to elect HSA.
  • You have until December 1st of the current plan year to enroll in the HSA. If you do not enroll in the HSA by December 1st of the current plan year, you will not receive the employer contribution for that plan year.
  • There is no fee for this account while you are enrolled in the Saver’s Choice Plan. If you retire, terminate, go on COBRA, or select a different health plan, HealthEquity will deduct a small monthly fee for account administration.
Important Information:
  • You cannot use an HSA to pay for health care expenses incurred by a domestic partner.
  • You may not contribute to a HSA when you are enrolled in Medicare. Please note that if you have to (or choose to) enroll in Medicare Part A, the coverage is retroactive for up to 6 months, but no earlier than your eligibility date. Because of this, you should plan to stop HSA contributions around 6 months before enrolling in Medicare.
    • If you continue to contribute to your HSA after you enroll in Medicare, there may be potential tax penalties depending on your situation. One such penalty may include a 10% income tax penalty on the amount of funds you have contributed. The City of Phoenix does not provide tax or legal advice. You should consult with your own tax or accounting advisor for specific situation.
  • Customer Identification Program (CIP) Failure: If you fail to meet CIP requirements within 60 days or the end of the calendar year, whichever is sooner, HSA contributions will be returned to the city. If CIP is not verified within the same calendar year, employer contribution funds will be forfeited for that year
  • Employees may contribute to their HSA on a pre-tax basis only while enrolled in the BCBS Saver’s Choice Plan. If you later switch to the HMO or PPO plan, you can no longer contribute to the HSA.
You cannot be enrolled in an HSA if:
  • You are enrolled in other non-HSA eligible health coverage, including a spouse’s group health plan, Flexible Spending Account (FSA), or Medicare. Exception: You can enroll in a limited-purpose FSA and an HSA health plan at the same time. Any FSA elections while electing an HSA will automatically be converted to a Limited Purpose FSA.
  • You are claimed as a dependent on someone else’s tax return

Contact Health Equity

Website: https://www.healthequity.com/phoenix
Member Services: (877) 582-4793