Do I have to use PayFlex for my HSA?

Plan members are not required to use the state-sponsored insurance program’s vendor, PayFlex, for their HSA.  However, when you enroll in a CDHP, an HSA will automatically be set up for you with PayFlex, and it will be your responsibility to close it if you choose to do so.  Also, be aware that actively enrolled plan members’ monthly account maintenance fees for the HSA are being paid for by the State Insurance Program.  If you open another HSA elsewhere, you will be responsible for any monthly account fees.  Further, your employer (whether it be the State, a Higher Education institution, a local education school system, or a local government entity) will not be able to take funds from your paycheck on a pretax basis and transmit them to your HSA institution. If your employer plans to transmit their contributed funds (not your paycheck contributions) on a monthly or bi-monthly basis to PayFlex, you would likely lose out on those funds as they are already set up to transmit to PayFlex.  If you want to open an HSA with your own institution, you would need to contribute after-tax funds (up to your maximum contribution) via check or electronic deposit and then take an above-the-line tax deduction on your taxes next year.

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