Health Care Savings Plan Overview
About the Plan
The Health Care Savings Plan (HCSP), administered by Minnesota State Retirement System (MSRS), is an employer-sponsored program authorized by Minnesota State Statute, 352.98. Employees invest in a tax-free medical savings account while employed by a Minnesota public employer (including a city, state, county, school district, or governmental subdivisions).
After you leave public employment you can access the money in your HCSP account - regardless of your age - to reimburse eligible medical expenses incurred by you, your spouse, legal tax dependents, and adult children up to age 26.
The HCSP is a reimbursement account. You are responsible for paying your provider; with proper documentation of the expense, you can request reimbursement from the account. Reimbursements are always paid to you, not to your provider.
Paying for healthcare may be one of your household's largest expenses. According to Fidelity's Retiree Health Care Cost Estimate, a 65-year old couple retiring in 2018 will need an estimated $280,000* to cover healthcare costs in retirement. You can use the tax-free dollars accumulated in your HCSP account to reimburse out-of-pocket healthcare costs - not just in retirement, but anytime after you leave Minnesota public employment.
* This estimate is based on a hypothetical 65-year-old couple retiring in 2018 with average life expectancies of 85 for a male and 87 for a female. Estimates are calculated for "average" retirees, but may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes. It assumes individuals do not have employer-provided retiree health care coverage, but do qualify for Medicare (Original).