EIU Benefit Services

HSA, MCAP and DCAP information

Health Savings Accounts (HSA) for Active State Employees-Companion to CDHP Enrollment ­ ONLY 

An HSA is like a 401(k) for healthcare, yet the HSA tax benefits are far greater. It is a tax-­favored, interest-bearing account that active State employees can use to pay for qualified medical expenses, now, or in the future.  Active State employees who qualify (see Qualifying for an HSA below), can save or invest the account funds. Paired with the Consumer Driven Health Plan (CDHP), an HSA is a powerful financial tool that gives you more control of your healthcare decisions. An HSA offers triple tax savings. 

• Pre-­tax or tax deductible contributions • Tax-­free interest or investment earnings • Tax-­free distributions, when used for qualified medical expenses

The State will contribute a third of the deductible to an active State employees' HSA. You may also contribute an additional $3,616.66 for individual; or $7,233.32 for family, to your HSA through pre-­tax payroll deductions or post-­tax direct payment. Active State employees can make tax­-free withdrawals to pay for qualified medical expenses, for you and your eligible dependents. HSAs are portable. Unlike an FSA, there is no "use-­it-­or-­lose it" rule with HSAs. Unused contributions remain in the account each year, earning tax­-free interest. If the employee invests HSA funds, those funds remain in the investment account. HSAs offer the potential for long-­term, tax­-free savings that can be used for future healthcare expenses including; out-­of-­pocket expenses after retirement, Medicare and long-­term care (LTC) premiums, up to IRS limits and certain LTC expenses. There are no income limitations.

Qualifying for an HSA

To be an eligible individual and qualify for an HSA, you must:

• Be covered under a high deductible health plan

• Have no other health coverage (except what is permitted under Other health coverage:
https://www.irs.gov/publications/p969#en_US_2019 _publink1000204039)

• Not be enrolled in Medicare. This includes Part A

• Can’t be claimed as a dependent on someone else’s tax return

Medical Care Assistance Program (MCAP)
­ Companion to your HMO, OAP, QCHP, or CDHP (if not enrolled in an HSA)

Save on eligible health, dental and vision expenses by setting aside pre-­tax contributions per pay period for you and your eligible dependents. Expenses include doctor, dentist, glasses/contacts, or prescription drug copays, coinsurance, or other eligible out-­of-­pocket expenses. All active employees are eligible to enroll in MCAP during the Benefit Choice Period. MCAP is not available to retirees, annuitants, or anyone enrolled in an HSA. Participants will be provided a debit card at no cost. Documentation may be required to substantiate certain expenses paid with the debit card. The MCAP maximum contribution limit is $3,200 for the FY25 plan year with a $640 maximum rollover. Participants who do not re-enroll for the new plan year will forfeit any amount eligible for rollover. 

Dependent Care (Day Care) Assistance Program (DCAP)

DCAP is an account that allows you to set aside pre-­tax contributions per pay period to pay for dependent care (Day Care) expenses, for children age 12 and under, or care for a physically or mentally disabled dependent. DCAP cannot be used for dependent medical expenses or for children for which you are not considered the primary or custodial parent.

You must re-­enroll every year to continue participating. Remember that your FSA elections do not carry over from year-to-­year. Re­-enroll by logging on to MyBenefits.illinois.gov and completing the enrollment process by June 1, 2024. You have until September 30 to submit claims for services incurred from July 1 through June 30; otherwise, any money left in your account will be forfeited, with the exception of the $640 MCAP maximum rollover.

You cannot be enrolled in both an HSA and the MCAP Flexible Spending Accounts.