Title:
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Approve Cigna Health Savings Account employer contribution increase due to the Internal Revenue Service (IRS) 2025 Inflation adjustments to Health Savings Accounts (HSA). The current $500 contribution per employee amounts to $61,000 annually and the recommended increase to $750 has an impact of $91,500 annually, with an annual increase of $30,500. (Christina Brandolini, Human Resources Director)
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Division:
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Human Resources - Employee Benefits
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Authorized By:
Christina Brandolini
Contact/Phone Number:
Christine Brandolini/407-665-7940
Background:
The Internal Revenue Service (IRS) has announced the inflation-adjusted 2025 minimum deductibles, out-of-pocket maximums, and contribution limits for health savings accounts (HSA). These changes are effective for benefit plan year beginning January 1, 2025, or later. (Exhibit A)
In response to these changes, staff is recommending increasing the employer contribution to the HSA on behalf of those enrolled from $500 to $750. The County/employer contribution has been at $500 since 2015. The current fiscal impact of the $500 contribution is $61,000/annually, the additional impact for a $750 contribution is $30,500/annually, for a total fiscal impact of $91,500/annually based on current enrollment.
Requested Action:
Staff requests approval of the increase to the employer contribution to employee Health Savings Accounts from $500 annually to $750 annually.