Employee Overview - Considering a Health Savings Account _HSA_

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Employee Overview - Considering a Health Savings Account _HSA_ Powered By Docstoc
					     Considering a
Health Savings Account?
         (HSA)
Who is Eligible for an HSA?
 Individuals who are covered by an HSA-
 compatible health plan are qualified if they
 are:
 Not covered by any other non HSA-compatible
  health plan
 Not claimed as a dependent on another person’s
  tax return (excluding spouses per Internal
  Revenue Code)
 Not enrolled in Medicare
Basic HSA Concept
                          HSA
   Compare to an IRA


                                                Tax –Deferred Growth
                         Earnings

Contributions
                       Contributions               Tax-Deductible / Pre-Tax
                                                   Contributions



                                          Tax-Free Distributions
                                    (for qualified Medical Expenses)
                                             Normal Tax
                            (NON-qualified expenses if you are 65 or older
  Basic HSA Plan Concept
                      High Deductible health Plan
               2010                Single        Family
          Min. Deductible          $1,200        $2,400
                                                             Covers illness or injury after
          Max. Out of              $5,950        $11,90
                                                             the deductible, and certain
  HSA     Pocket
                                                              preventive care services at
Concept
                                                                   no cost to you
                        Health Savings Account
          Contribut       Single             Family
          ion
                                                                 Pays for Qualified
            2010         $3,050             $6,150             Medical Expenses not
                                                              covered by the Health
        *Out-of-pocket includes deductible & co-insurance              Plan.
 *Qualifying deductible ranges are limited by the maximum out-of-
                              pocket
Advantages of an HSA
• Funds roll over from year to year
• No “use it or lose it” philosophy
• Tax benefits on contributions, earnings and
  distributions
• Contributions are either pre-tax
•     (via paycheck) or tax-deductible
• Portability
• Funds follow you
• Tax-free withdrawals for Qualified Medical Expenses
  even if qualifying coverage ends
• Control over healthcare dollars
               HSAs, HRAs, FSAs
                  HSA           HRA          FSA
 Account        Employee     Employer      Employee
  owner
 Funding        Emloyee,     Employer      Employee,
                Employer,                   Possible
                 Other                     Employer
 Roll Over        Yes       Generally No      No
Year-to-Year
  Portable         Yes      Generally No      No
Online Tools
Internet access to your HSA provides the
  following features:
  Real time to your account balances and activity
  Making contributions or withdrawals using
   internal or external transfers
  Sign up for email alerts
  View Check images
  Access electronic statements
Online Tools
Mobile access to your HSA provides the
 following features:
  Access at any time or location
  View your balance or activity
  Pay bills
   Transfer funds
  Receive text alerts
Preventative Care Benefits
Many HSA-compatible health plans offer:
Periodic health evaluations
Routine prenatal and well-child care
 Immunizations
Quit Smoking programs
                        Check with your employer or health plan
Screening services     provider to determine which benefits are
                                 offered at no cost to you – before your
                                            deductible is met.
 How to Contribute
Who Makes Contributions?
    Accountholder
                                     Contribution from all sources count
    Employer
                                       toward the annual maximum.
    Third Party
How are they Made?
 Through your employer
      Payroll deduction may be an option
 Online via Internet Banking
   One-time or recurring from an external account
 Checks                                     Annual IRS Maximum
 Transfers or rollover               Year        Individual       Family
   MSA, HAS, IRA                    2010          $3,000          $6,150
                                     2011          $3,000          $6,150
Prorating Provision

• If HSA-compatible coverage begins after
  January 1st in a given year, you can contribute
  the annual IRS maximum as long as qualifying
  coverage continues through December 31st of
  the following year.
  – Exception – those who change from family to
    single plans will need to prorate based on the
    number of months under each type of coverage
         Catch-Up Contributions
• Accountholders covered under an HSA-
  compatible health plan who are age 55 or
  older and not enrolled in Medicare are
  eligible to make an annual catch-up
  contribution.
  – Accountholder’s spouse must have their own
    HSA, be age 55 or older and not enrolled in
    Medicare to be eligible to make the catch-up
    contribution
                               Catch-up Amount
           Accountholder           $1,000
              Spouse               $1,000
Distribution Options

Debit Card from Visa®
Reimburse from Internet Banking to an
 external account
HSA Checks
Withdrawal form
        Qualified Medical Expenses
     A Qualified medical Expense is incurred to maintain the health of the
  accountholder or the accountholder’s spouse or dependents. The following
                                are included:

Doctor and hospital visit
Medical equipment
Dental care, braces, dentures
Vision care, glasses, contacts
Medications, including many over-the counter
 version
Medical related transportation
                                            A list of Qualified Medical Expenses can be found
                                                        in the IRS Publication 502,
                                                  http:www.irs.gov/pub/irs-pdf/p502.pdf
Other Qualified Medical Expenses
Premium for long-term are insurance
  Limited to amount listed in 213(d) (10) of the
   Internal Revenue Code.
Premiums for COBRA
Premiums for coverage while receiving
 unemployment compensation
Premiums for individuals over age 65
  Retirement health benefits
  Medicare premiums
Employer Communication Kit

Ask you employer about educational employee
  materials that outline the benefits of an HSA
          and provide information on:
  – Account use
  – Potential future value
  – Taxes…and more
             Thank You



If you have questions or need assistance
    contact us at 800-508-2265 or email
           hsa@avidiabank.com

				
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posted:11/27/2010
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