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					                                              Optima Equity:
                                    A High-Deductible Health Plan (HDHP)
                                     With Health Savings Account (HSA)

                                            Frequently Asked Questions
    1.      What is an Health Savings Account (HSA)?
            It’s a savings and spending account that offers members a way to pay for qualified medical expenses
            with pre-tax dollars, as well as a tax-free way to save for future medical and retirement healthcare
            expenses. In order to open an HSA, you must be enrolled in a qualified High-Deductible Health Plan
            (HDHP).

    2.      What is a High-Deductible Health Plan?
            An HDHP can be thought of as a “low cost” plan. With an HDHP, the member is responsible for
            satisfying a deductible and paying for initial healthcare expenses. The health savings account may be
            used to cover those expenses. The Optima HSA qualified plans are called “Optima Equity.”

    3.      Who is eligible to open an HSA?
            Anyone who is covered by a qualified HDHP, is not covered by other health insurance, not enrolled in
            Medicare and cannot be claimed as a dependent on someone else’s tax return.

    4.      Who can contribute to an HSA?
            HSAs can be funded with pre-tax dollars by the member, their employer, or a third party.

    5.      How much can be contributed each year?
            For 2010, up to $3,050 for individuals and $6,150 for each family, including all contributions. Those
            age 55 or older may also make an additional “catch-up” contribution of $1,000. These rates are subject
            to change every year, adjusted for inflation.

    6.      Who owns the HSA?
            The member owns the account regardless of who contributes. The funds remain in the account and earn
            interest and returns over time, just like an Individual Retirement Account (IRA.)

    7.      What can an HSA be used to pay for?
            An HSA can be used to pay for any qualified medical expenses as defined in Section 213(d) of the
            Internal Revenue Service Code. Qualified medical expenses include, but are not limited to: copays,
            deductibles, and coinsurance; and vision and dental care. For a list of qualified medical expenses,
            please refer to IRS Publication 502 at www.irs.gov.




Optima Health is the trade name of Optima Health Insurance Company. Optima Equity HSA qualified high deducible PPO is
underwritten by Optima Health Insurance Company. Benefit exclusions and limitations apply. For costs and complete details
about coverage ask your broker or employer. The information provided in this document is not tax or legal advice. The tax
treatments vary for each situation. Please consult your tax and or legal counsel for tax implication of your unique situation.

                                                                                                           Member FAQs_0108
    8.      What are the benefits of using Optima Equity, the integrated HSA that Optima is offering with
            HealthEquity®?
            An integrated HSA offers a number of benefits for members. By enrolling in the Optima Equity plan,
            an HSA will be set up during the enrollment process. Customer service at HealthEquity® is available
            24/7 to assist with you questions about your HSA. There’s only one sign on for Optima Health and
            HealthEquity® websites. HealthEquity® also offers enhanced member payment capabilities via its
            online payment platform, PayChoice.

            The PayChoice platform enables members to manage their account information, see account
            balances, request reimbursements, make payments from the account directly to providers, schedule one
            or more payments in advance, set up electronic funds transfers and more – all in one place. Although
            you can work with any bank or other provider of HSAs, we believe that our integrated solution with
            HealthEquity offers our members significant benefits.

    9.      How does an HSA work?
            The member can use the account to make payments for qualified medical expenses.
            HealthEquity® account holders can make payments by debit card, online using electronic funds transfer
            (EFT), or by phone. Paper reimbursement checks are also available for $2.00. All records are
            maintained for future tax purposes.

    10.     What happens to HSA funds if the owner changes jobs or retires?
            The account still belongs to the owner. You can keep your HSA even if you change jobs, change your
            medical coverage, become unemployed, move to another state, or change your marital status.

    11.     Can an HSA ever be used to pay for non-qualified expenses?
            Once the member reaches age 65 the funds can be used for non-qualified expenses, but withdrawals
            will be subject to tax. If the funds are used before age 65 for non-qualified expenses, the amount used
            will be taxed and incur a 10 percent penalty.

    12.     Can a retiree contribute to an HSA?
            Yes, if they are covered by a qualified high-deductible health plan and not enrolled in Medicare,
            another health insurance planned, or a claimed as a dependent on someone else’s tax return.

    13.     Do members lose HSA funds at the end of the year?
            No. Remaining funds roll over into the following year and grow tax-free.

    14.     Can HSA funds be withdrawn any time?
            Yes, as long as they’re used to pay for qualified medical expenses the money is not taxed. If money is
            withdrawn before age 65 for other expenses, the regular tax rate would apply as well as a 10 percent
            penalty. After age 65, there are taxes when used for non-qualified expenses, but no penalty applies.

    15.     Does an HSA earn interest?
            Yes. Best of all, the interest accumulates without applied taxes.

Optima Health is the trade name of Optima Health Insurance Company. Optima Equity HSA qualified high deducible PPO is
underwritten by Optima Health Insurance Company. Benefit exclusions and limitations apply. For costs and complete details
about coverage ask your broker or employer. The information provided in this document is not tax or legal advice. The tax
treatments vary for each situation. Please consult your tax and or legal counsel for tax implication of your unique situation.

                                                                                                           Member FAQs_0108
    16.       Can HSA funds be invested?
              Yes. With the HealthEquity HSA, once a $2,000 account balance is achieved, the first dollar above this
              amount can be invested. Think of an HSA as a medical 401(k), only better. You contribute pre-tax
              dollars. Then you earn interest or get investment returns – your choice. Unlike a 401(k), your money is
              never taxed if you use it for qualified medical expenses regardless of your age.

    17.       Which individuals benefit most from HSAs?
              HSAs and qualified high-deductible health plans can work for anyone. They offer an option to save for
              retirement and pay for medical expenses in the meantime. In order to determine if an HSA is right for
              you, compare your various benefit options and evaluate them based on your financial and health
              situation.

    18.       Do I have to pay any additional out of pocket costs for wellness or preventive benefits*?
              Wellness or preventive benefits are paid by the HDHP, outside of the general deductible. A nominal
              copay will apply, with preventive services covered at 100 percent of the contracted provider rate.

    19.       What happens after I open an HSA with HealthEquity?

              Upon opening the HSA, the account holder will receive the following items from HealthEquity:

                HSA Member Welcome Letter, which lists all of the features of the HSA, including the client
                 services contact information.
                Member Guide providing the account holder with information on how to navigate their HSA and an
                 overview of the HealthEquity® services that will help with management of their HSA.
                Visa debit card with activation stick and card carrier.
                Custodial agreement for their records.
                HSA fee and interest rate schedule.
                PIN mailer, which contains their debit card Personal Identification Number.

    20.       How do I access my HSA account?

              Sign in to your member secure site at www.optimahealth.com, select “Manage My HSA Account” in
              the “My Optima” menu. If you have not already registered, you will ned to create a username and
              password.




*Preventive care is defined as periodic check-ups, well baby care, annual GYN exam, lab & x-ray, mammograms, PSA
testing, vision and hearing screenings for children up to the age of 18 (some required by Virginia law).




Optima Health is the trade name of Optima Health Insurance Company. Optima Equity HSA qualified high deducible PPO is
underwritten by Optima Health Insurance Company. Benefit exclusions and limitations apply. For costs and complete details
about coverage ask your broker or employer. The information provided in this document is not tax or legal advice. The tax
treatments vary for each situation. Please consult your tax and or legal counsel for tax implication of your unique situation.

                                                                                                           Member FAQs_0108
    21.    Where can I get information on investment funds?

           You can get to HealthEquity® information through your secure member site at www.optimahealth.com.
           HealthEquity® offers a variety of investment fund choices. Please refer to the specific fund’s web link
           provided on the separate investment page.

    22.    Can I establish an HSA if my spouse is enrolled in Medicare or in another health plan?

           Yes, if you are not enrolled in another medical plan and are otherwise eligible. Your spouse would not
           be eligible to open or contribute to an account, but can be covered under the HDHP.

    23.    Can I have both a Flexible Spending Account (FSA) and an HSA?

          Yes, however, you must elect a Limited FSA for qualified dental, vision or preventive copays only.
          Your FSA elections must be made annually during open enrollment.




Optima Health is the trade name of Optima Health Insurance Company. Optima Equity HSA qualified high deducible PPO is
underwritten by Optima Health Insurance Company. Benefit exclusions and limitations apply. For costs and complete details
about coverage ask your broker or employer. The information provided in this document is not tax or legal advice. The tax
treatments vary for each situation. Please consult your tax and or legal counsel for tax implication of your unique situation.

                                                                                                           Member FAQs_0108

				
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