HSA Overview - Considering a Health Savings Account _HSA_

Document Sample
HSA Overview - Considering a Health Savings Account _HSA_ Powered By Docstoc
					     Considering a
Health Savings Account?
Who is Eligible for an HSA?
 Individuals who are covered by an HSA-
 compatible health plan are qualified if they
 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
   Compare to an IRA

                                                 Tax –Deferred Growth

                       Contributions                Tax-Deductible / Pre-Tax

                                             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
                                                                 Pays for Qualified
            Contribution       Single            Family        Medical Expenses not
                                                               covered by the Health
               2010            $3,050            $6,150

                *Out-of-pocket includes deductible & co-insurance
     *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
• 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
                 HSA        HRA          FSA
 Account       Employee    Employer    Employee
 Funding       Employee,   Employer    Employee,
               Employer,                Possible
                 Other                 Employer
 Roll Over        Yes      Generally      No
Year-to-Year                 No
  Portable        Yes      Generally      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
Screening services
                  Check with your employer or health plan 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
                                     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
  – 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
                            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
Medical related transportation
                                            A list of Qualified Medical Expenses can be found
                                                        in the IRS Publication 502,
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

Shared By: