This guide will detail the origins of a Health Savings Account (HSA) as well as why you should consider an HSA, how to establish an HSA, using your HSA, and much more.
The goal of this guide is to layout the importance of benefits communication before, during, and after annual enrollment and how - when done properly - you can rejuvenate an effective HR plan.
[Guide] The Best Introduction to Health Savings Accountsbenefitexpress
Whether you are being, well… motivated to consider a Health Savings Account (HSA) due to a workplace change in policy, or you perceive that you are spending more than you should be for health care – some compelling reason brought you to this guide. Good! This is your first step toward understanding what an HSA is and how it works.
This is an introductory guide that aims to inform consumers and employers about Health Savings Accounts.
An employer's guide to choosing the right HSA from Alliant Credit Union. For more information, or to download our white paper, visit http://www.alliantatwork.com.
Open enrollment is the only time of year to get an individual policy without a qualifying life event. Our webinar makes sure you and your employees are prepared.
The Impact of Dropping Your Health Plan in 2015CBIZ, Inc.
As employers consider whether or not to drop their health plan in 2015, a broad, comprehensive financial impact analysis is required. In addition to calculating the cost of the “No Coverage” Shared Responsibility penalty, employers must factor in the nondeductibility of the penalty, increases in cash compensation and possible reductions in productivity. This article provides a brief overview of these components and explains how to run the math.
Small business owners guide to the cares actVijar Kohli
The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will
be many new resources available for small businesses, as well as certain nonprofits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax
provisions that are outside the scope of SBA.
The goal of this guide is to layout the importance of benefits communication before, during, and after annual enrollment and how - when done properly - you can rejuvenate an effective HR plan.
[Guide] The Best Introduction to Health Savings Accountsbenefitexpress
Whether you are being, well… motivated to consider a Health Savings Account (HSA) due to a workplace change in policy, or you perceive that you are spending more than you should be for health care – some compelling reason brought you to this guide. Good! This is your first step toward understanding what an HSA is and how it works.
This is an introductory guide that aims to inform consumers and employers about Health Savings Accounts.
An employer's guide to choosing the right HSA from Alliant Credit Union. For more information, or to download our white paper, visit http://www.alliantatwork.com.
Open enrollment is the only time of year to get an individual policy without a qualifying life event. Our webinar makes sure you and your employees are prepared.
The Impact of Dropping Your Health Plan in 2015CBIZ, Inc.
As employers consider whether or not to drop their health plan in 2015, a broad, comprehensive financial impact analysis is required. In addition to calculating the cost of the “No Coverage” Shared Responsibility penalty, employers must factor in the nondeductibility of the penalty, increases in cash compensation and possible reductions in productivity. This article provides a brief overview of these components and explains how to run the math.
Small business owners guide to the cares actVijar Kohli
The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will
be many new resources available for small businesses, as well as certain nonprofits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax
provisions that are outside the scope of SBA.
Employee benefit Insurance policies guide for Indian CompaniesSusheel Agarwal
This Book presents the guidelines to Employee Benefits Insurance, the best practices, all the related questions and their answers! The relevant concepts in employee insurance and examples to help the readers understand and complement the core content!
Please reach out to us directly in case of help in creating a wonderful benefits bouquet for your people.
T. Rowe Price has provided a article for Advisors regarding Financial wellness programs:
an opportunity to differentiate your practice and broaden your reach. Employers are increasingly seeking to offer holistic financial education that benefits both the employees and the company itself.
If you plan on working during your retirement, you're not alone. According to the Employee Benefit Research Institute's 2013 Retirement Confidence Survey, 69 % of workers plan to work in retirement.
HR Webinar: The Affordable Care Act Turns 10 Years Old: Where to From Here?Ascentis
Happy Birthday, ACA! Ten years ago, on March 23, 2010, the ACA was signed into law. Adding an unprecedented level of consumer protections and minimum quality standards to the health insurance Americans use, the law was and remains controversial to this day. In fact, the rate of uninsured nonelderly Americans dropped from a high of 17.8% in 2010, to 10.0% in 2016. The cancelation of the individual mandate, among other factors, has started to reverse that trend, with increases in the uninsured rates in 2017 and 2018. As the ACA celebrates its tenth birthday, it has something else to celebrate: its highest approval rate since public opinion polls began tracking it: 55% favorable opinion vs. just 37% unfavorable opinion.
As an HR professional, always busy with a hundred other people priorities at your company, it is hard to keep up with the ever-changing laws in the health insurance industry, and specifically, the ACA. With the law predicted to head to the Supreme Court soon for the third review of its fundamental constitutionality, receiving real-time updates becomes even more important. See what has changed in the ACA, looking at where it started to where it is now in this webinar!
With many employees relying on defined contribution savings as their primary source of retirement income, Retirement Annuity Accounts (RAAs) offer employers a benefit plan option to provide employees guaranteed retirement income on an annuity basis.
Get ready for the Affordable Care Act. The light you see is the oncoming train!
Lot's of things happening, not too many answers and it will take a few years to flesh it all out.
Employee benefit Insurance policies guide for Indian CompaniesSusheel Agarwal
This Book presents the guidelines to Employee Benefits Insurance, the best practices, all the related questions and their answers! The relevant concepts in employee insurance and examples to help the readers understand and complement the core content!
Please reach out to us directly in case of help in creating a wonderful benefits bouquet for your people.
T. Rowe Price has provided a article for Advisors regarding Financial wellness programs:
an opportunity to differentiate your practice and broaden your reach. Employers are increasingly seeking to offer holistic financial education that benefits both the employees and the company itself.
If you plan on working during your retirement, you're not alone. According to the Employee Benefit Research Institute's 2013 Retirement Confidence Survey, 69 % of workers plan to work in retirement.
HR Webinar: The Affordable Care Act Turns 10 Years Old: Where to From Here?Ascentis
Happy Birthday, ACA! Ten years ago, on March 23, 2010, the ACA was signed into law. Adding an unprecedented level of consumer protections and minimum quality standards to the health insurance Americans use, the law was and remains controversial to this day. In fact, the rate of uninsured nonelderly Americans dropped from a high of 17.8% in 2010, to 10.0% in 2016. The cancelation of the individual mandate, among other factors, has started to reverse that trend, with increases in the uninsured rates in 2017 and 2018. As the ACA celebrates its tenth birthday, it has something else to celebrate: its highest approval rate since public opinion polls began tracking it: 55% favorable opinion vs. just 37% unfavorable opinion.
As an HR professional, always busy with a hundred other people priorities at your company, it is hard to keep up with the ever-changing laws in the health insurance industry, and specifically, the ACA. With the law predicted to head to the Supreme Court soon for the third review of its fundamental constitutionality, receiving real-time updates becomes even more important. See what has changed in the ACA, looking at where it started to where it is now in this webinar!
With many employees relying on defined contribution savings as their primary source of retirement income, Retirement Annuity Accounts (RAAs) offer employers a benefit plan option to provide employees guaranteed retirement income on an annuity basis.
Get ready for the Affordable Care Act. The light you see is the oncoming train!
Lot's of things happening, not too many answers and it will take a few years to flesh it all out.
A brief description of how using an HSA in conjuction with a qualifed major medical HDHP can help control premiums and put you the consumer back in control of your healthcare dollars. Currently 9 million people enrolled in an HSA qualified plan.
HSA vs FSA - 5 Reasons HSA's Will Replace FSA's HSA Coach
HSA's and FSA's remain the primary tax-free savings choice for healthcare consumers. Yet the two types of accounts couldn't be more different. Here we explore what HSA's will increasingly grow in popularity compared with FSA's (hint - FSA's cannot keep up with the underlying growth in healthcare costs.)
Presentation to show how a High Deductible Health Plan paired with an HRA or HSA can allow an employer to maintain medical benefits while savings 10% or more
Learn how you can make your dollars go further and reduce your out-of-pocket costs for qualified health care expenses and insurance premiums, take more control over health care spending decisions and benefit from significant tax savings when enrolling in a Health Savings Account (HSA).
Think of a Health Savings Account (HSA) like having a health 401(k) you can dip into now—or, let it build to pay for qualified medical expenses after you retire. This simple tutorial is designed to help you decide whether a Health Savings Account might be a good fit for you (and your family).
Health insurance has a language all its own.
Understanding how your insurance plan works
is something every American needs to master.
These terms are important to know to get the
most out of your health care coverage.
Webinar: Mid-Year Election Changes for Cafeteria Plansbenefitexpress
Let's talk about cafeteria plans. When can participants make election changes?
While cafeteria plans can be a great option for employees wishing to pick and choose benefits based on cost, when and how to facilitate election changes outside of open enrollment can be tricky to navigate for employers. As the use of cafeteria plans continue to grow, we take a deeper look at the rules and regulations of these plans, particularly as they pertain to mid-year election changes.
COVID-19 Health & Welfare: Compliance for Employersbenefitexpress
As part of our continuing ERISA Compliance series, we covered such compliance topics and more in our April 9th webinar discussing COVID-19 and updates from the IRS and DOL concerning the Families First Coronavirus Response Act.
Plan Sponsor Webinar: Navigating COVID-19 for Employersbenefitexpress
In this webinar, we take a deeper look into how the novel coronavirus is not only affecting the way we live, but changing the way we work. From remote work environments, FMLA, contract agreements and more, we discuss how to navigate the changing workforce during this time of uncertainty, and answer questions to help you make the best decisions for the health and safety of your employees.
Medicare & Employer Health Coverage - a Coordination Conversationbenefitexpress
Let's talk about Medicare and Employer Health Coverage. The rules on coordinating Medicare and employer coverage can be complex. How it complements other programs (such as COBRA, HSAs and the ACA) are also areas of question for both employees and their employers.
Part of our ERISA Compliance Series, this webinar is hosted by ERISA Attorney Larry Grudzien and moderated by chief marketing officer Julia Goebel. This webinar will discuss the top wage and hour issues that may be unknowingly lurking within your company.
The Affordable Care Act touches the lives of most Americans. In fact, nearly 21 million will be at risk if Obamacare is struck down, and may even lose health insurance completely if the law is ruled unconstitutional. This webinar will discuss what the outcome may be if ACA is repealed.
Watch our free one-hour webinar reviewing the rules for the new Individual Coverage HRA and the new Excepted Benefit HRA (ICHRA and EBHRA).
In June 2019, Treasury, DOL and HHS released final regulations that are effective for plan years beginning on or after January 1, 2020. These regulations created two new HRAs, Individual Coverage HRAs (ICHRA) and Excepted Benefit HRAs (EBHRA).
These new HRAs will be subject to ERISA and COBRA, but will not be subject to the nondiscrimination rules under Code Section 105(h). Any employer can offer these new HRAs to their employees. They can be offered to common law employees, but cannot be offered to self-employed individuals, partners and more than 2% S-Corporation shareholders.
Facilitated by ERISA attorney Larry Grudzien, and moderated by Chief Marketing Officer Julia Goebel, this webinar will cover the following:
-Why are these new HRAs so important?
-Which employees can be included or excluded
-What documentation is needed to be completed by employers to adopt them
-What reporting and disclosure requirements must be met
-What types of expenses can be reimbursed
-The pros and cons of establishing and participating in these new HRAs for employers
In today's multi-generational workforce, health and wellness benefits are weighted equally with salary expectations. This is why it's important for small and large businesses alike to embrace health and wellness benefits to recruit top talent as well as retain valued employees.
While offering these benefits has been shown to improve employee engagement and productivity, it comes with some challenges. This webinar reviews common questions human resources professionals confront when offering health and welfare benefits to employees.
Facilitated by ERISA attorney Larry Grudzien, this webinar covers the following:
- Questions Surrounding Tax
- Reporting Disclosures
- ERISA, COBRA & FMLA
- Workers Compensation
- Affordable Care Act (ACA)
Benefits are a critical piece of an employee compensation package, with health care benefits reigning most important. Whether you're already offering these benefits or considering adding them to your benefits offerings, view our webinar to learn more and remain competitive in the talent marketplace.
How to Administer Wellness Programs in Today's Regulatory Environmentbenefitexpress
Are you struggling to make sense of the recent legislative updates surrounding employer sponsored wellness programs? Perhaps you are trying to decide whether to continue with current wellness plans, modify your plans without guidance from the EEOC, postpone new wellness programs or discontinue them all together.
It’s a complicated landscape ripe with several options for “next steps” for employees and plan sponsors of wellness plans in 2019 — with perhaps the biggest barrier of all being that employers cannot measure the risk of wellness plans at this time.
To help guide you through this maze of options, watch our one-hour webinar on-demand to learn what rules remain after the EEOC’s regulations were found invalid and what rules have to be met in 2019 in order to offer a valid wellness program.
How to administer wellness programs in today's regulatory environment
This webinar covers:
Requirements under HIPAA
Requirements under the Internal Revenue Code
Requirements under ERISA
Requirements under GINA
Requirements under ADA
Requirements under ACA
HIPAA Training: Privacy Review and Audit Survival Guidebenefitexpress
HIPAA Privacy Overview for Employers. Review a helpful checklist of requirements an employer must adopt to stay compliant with HIPAA and to survive an audit by Health and Human Services (HHS).
Webinar | Texas vs. United States - The Repeal of ACA?benefitexpress
Recently a Federal District Court held in Texas, et al. v. United States of America, et al. that the individual mandate in the Patient Protection and Affordable Care Act (ACA) is unconstitutional, and that the other provisions in the ACA are invalid because they are inseverable from the individual mandate.
Our ACA compliance webinar reviews:
- What the Federal District Court decided.
- The basis for the decision.
- The impact of the decision.
- What may happen over the next months or year.
- What Congress may do to address the situation.
Healthcare Check-in: The Latest Developments in Health and Welfare Plansbenefitexpress
We work in an exciting industry – which means quick changes are the norm, and adaptability is a necessity. Keep your compliance plans up to date with a download of all legislative changes since our last update webinar. This webinar covered legislation that's passed in the last six months, what's on the way, and what it means for your organization.
Webinar | From Analysis to Action: How Personalization Can Lower Employer Cos...benefitexpress
Personalization is everywhere – from Amazon to Spotify, and is now the expectation for consumers. Personalization in benefits elections is also the new normal, thanks to decision support tools and data analytics. Modern decision support tools draw on data points including demographics, preferences and medical need, all highly relevant towards personalization ... as opposed to the "one-size fits all" modeler of the past that relied on strict business rules.
Using data to advise clients can be a game changer for a broker. With analytics, you can quantify your benefit plan suggestions based on hard evidence, and advise based on unbiased data versus mere opinion. But where does this data come from? And how do you know which data to use?
This webinar shows how decision support tools can provide data to simplify health benefit decisions, allowing employees to feel more confident in their decisions, leading to lower costs for employers and client retention for brokers as a result.
In this webinar, brokers will learn how decision support analytics can reinforce their role as a trusted adviser by:
• Helping employer clients understand which health plans and programs are being used and which ones are the most cost-effective
• Minimizing the number of employees who are over-insured or under-insured, helping to save on annual and long-term costs for healthcare premiums, leading to better client retention over time
• Supporting healthy employee behaviors, resulting in lower health care expenses overall
FSAs can do some heavy lifting for your benefits plan – they allow employees to save pretax dollars for healthcare costs without the price tag of other financial wellness initiatives.
However, many HR professionals lack a deep understanding of the compliance requirements to offer and administer a well-rounded program for their employees. Engage your employees with a financial wellness benefit that works.
Key webinar takeaways:
- How different types of FSAs interact with benefit plans as a whole
- FSA and reimbursement limits for 2018
- Legal implications of offering an FSA to employees
- Best practices for administering a successful FSA benefit plan
Webinar | COBRA Pitfalls: Common Mistakes and How to Avoid Thembenefitexpress
Leaving the organization isn't the end of the benefits cycle for employees. This webinar focuses on how to avoid one of the most common compliance pitfalls in benefits ... COBRA administration.
Some of the top takeaways were:
• The basics of successful COBRA administration
• Required notices associated with COBRA coverage
• How Medicare interacts with COBRA for employees and dependents
• Penalties for noncompliance
Smooth and successful off-boarding of departing employees is as important as well-planned on-boarding of new hires. Log on to your roadmap for a smooth ride into COBRA compliance.
Webinar | Clients Calling “Mayday”? Design a Benefits Technology Strategy to ...benefitexpress
Benefits administration can be a delicate, and even difficult balancing act for employers. From managing costs and administrative demands, to maintaining compliance, and integrating with workforce wellness plans, it’s not surprising that three in four employers called “mayday” and turned to benefits administration outsourcing in 2017. With the administrative difficulty level rising, and advisory competition increasing, it is now critical to become the partner of choice to relieve this distress. But how?
Join Scott Evans, chief product officer at benefitexpress, this May Day, as he guides benefits advisers through the top considerations for building, buying or borrowing benefits administration technology solutions to offer clients. If you and your clients have benefits technology questions, Scott has answers.
Webinar takeaways include:
• How to assess your readiness: learn and identify the benefits administration business model that is right for you
• Key criteria for evaluating potential benefits technology partners, plus a valuable checklist
• How to create a benefits technology strategy for your business which is seen as an imperative – not a “value-add” – by your clients
• Tips for staying competitive in a changing market, using your solutions portfolio
Webinar | Training the Technique: Advanced ERISA Compliancebenefitexpress
If your organization offers any form of retirement plan, chances are you have questions about ERISA. This advanced compliance training will go beyond the basics of the requirements of the Employee Retirement Income Security Act of 1974.
Attend our one-hour training to learn:
- Which employers are affected by ERISA regulations
- Which benefits plans are subject to ERISA
- What documentation employers must provide to prove
compliance
- Penalties for noncompliance
ERISA attorney Larry Grudzien will share industry inside knowledge to help participants ensure total compliance with ERISA regulations.
2. Intro
Whether you are being, well… motivated to consider a Health Savings
Account (HSA) due to a workplace change in policy, or you perceive that you
are spending more than you should be for health care – some compelling
reason brought you to this guide. Good! This is your first step toward
understanding what an HSA is and how it works.
This is an introductory guide that aims to inform consumers and employers
about Health Savings Accounts. Make sure you get additional questions
answered by reading IRS Pub. 969 or through your insurer.
Contents
HSA Origins
A Brief Look into CDHPs
Considerations of an HSA
Establishing an HSA
Using the Account
HSA Expenses & Coverage
Additional Resources
3
4
6
9
10
11
17
INTRO
HOW HSAS WORK
ADDITIONAL RESOURCES
3. 1
2
3
4
5
6
7
8
0.1 0.20 .2 0.4
0.9
1.1
1.7
2.3
3.2
4.4
6.1
8.3
HSA Investment Assets (in billions)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
*estimatedSource: Figures based on Devenir Research and 2014 Year-End Devenir HSA Market Survey
3 | HSA: Employee Benefit Express
Part 1 Intro
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According to the National Center for Policy Analysis (NCPA), the idea for such an
account came about in the early 1990’s. The NCPA had organized a task force whose
conclusions advocated for self-insurers to use a Medical Savings Account (MSA),
then “medisave”, to cover their smaller medical bills. It took a book (Patient Power,
1992) and much trial & error in the private sector before Congress came out with a
pilot program for the MSA in 1996.
Since MSAs were only available to the self-employed and employees of a small
business – there grew a need for plans available to the broader consumer market.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003
is what expanded availability to any individual/family with HSA-qualified
insurance. HSAs are now a rapidly growing option in the healthcare community.
HSA Origins
4. 4 | HSA: Employee Benefit Express
Part 1 Intro
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To fully understand an HSA, you must first learn about the general breakdown
of Consumer-Driven Health Plans (CDHPs) - as that is the general category of
what you’re looking at. The main idea of CDHPs is to give control of health care to
the consumer so that they are encouraged to make informed healthcare buying
decisions and can be rewarded with cost savings for living a healhtier lifestyle.
CDHPs are characterized by having a High-Deductible Health Plan (HDHP) associated
with some sort of medical savings account. In exchange for paying for routine
medical expenses up front, the consumer gains the benefit of a lower insurance
premium. You pay these medical expenses (excluding the premium) out of your
medical savings account.
A brief look into CDHPs
5. Deductible Period
Financial Layout of Payment Periods
Coinsurance Period
After OOP max is reached
Insurance Premium
Non-qualified Expenses
Coverage
Preventive Care
HSA-qualified expenses
You Pay They Pay
*Not based on actual percentages
5 | HSA: Employee Benefit Express
Part 1 Intro
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In terms of initial money allocation in an HDHP: there are certain things that are
considered preventive care... which are covered by the plan straight away. In addition
to a premium, other expenses must be paid in full until the deductible is met - at
which point the plan will cover a percentage of the remaining costs. Once the out-of-
pocket maximum is reached, then the plan will pay the rest of your medical expenses
for the term. These conditions will be discussed later in the guide as well.
There are a few varieties of HDHPs that you can consider. The main options
include: Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health
Reimbursement Arrangements (HRAs), and Medical Savings Accounts (MSAs). All will
allow tax advantages; however, each has unique stipulations.
A brief look into CDHPs
6. A brief look into CDHPs
6 | HSA: Employee Benefit Express
Part 1 Intro
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FSA - Flexible Spending Account
Employer-established accounts that reimburse employees for qualifying expenses.
They are usually funded through salary reduction agreements under which
employees receive lower monetary wages in exchange for equivalent contributions
to their FSAs.
HRA - Health Reimbursement Arrangement (Account)
Employer-established arrangements that reimburse employees for qualifying
expenses. Contributions cannot be made through the employees’ salary reduction
agreements; only employers may contribute.
MSA - Medical Savings Account
Accounts that the account holders use to pay for qualifying expenses. They were
established by individuals who held high-deductible health plans (HDHPs) in order
to establish or contribute to the MSA. Individuals generally cannot open MSAs
after December 31, 2007, but those who had accounts by this date may maintain
them. MSA eligibility was limited to people who were self-employed or employed
by an employer with fewer than 50 employees. Contributions may be made by the
employer or account holder, but not both in the same year.
Summary of Other Accounts
7. Triple Tax Advantages
Savings that grow
are tax deferred
Deposits are
deductible off
federal gross income
Qualified medical
distributions are
never taxed
$ $
Investment Advantages
Funds may be
invested in a CD,
money market, or
mutual fund
Employer
contributions are
yours to keep
Funds rollover to
the next term
$$
$$ $
7 | HSA: Employee Benefit Express
Part 1 Intro
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Compared to traditional plans, CDHPs are more complex and require much more
planning for the future to make them successful. If you’re willing to make time to
shop around for services, and when researched thoroughly and applied properly, an
HSA under an HDHP can yield some hefty savings through these advantages:
Considerations of an HSA
Positive Considerations
8. 8 | HSA: Employee Benefit Express
Part 1 Intro
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Lowers health care premiums under the HDHP for coverage for employees
Lowers the employer’s administrative costs
Provides employees an opportunity to contribute for future health care expenses under
the HSA for him or herself and his or her dependents
Provides any employee who contributes to an HSA with a tax deduction and/or an income
tax and payroll tax free contribution
No monies in employees’ HSAs can ever be forfeited back to the employer, even if
contributions are deemed in excess
Provides an employer with an opportunity to contribute to eligible employees at any
time and at any amount up to statutory limits
Gives employees immediate access to their HSAs for any reason
Provides tax free distributions at any time for health care expenses incurred after the
HSA has be established (if the expense was neither reimbursed from any other source
nor deducted by the employee)
Provides reimbursement of health care expenses for his or her spouse after the
employee’s death, provided the spouse is named as the beneficiary under the HSA
Provides either a trust or custodial account that accumulates earnings on a tax free basis
Gets the employer out of the business of substantiating health care claims
Avoids the requirements of ERISA (and COBRA and HIPAA) if the employer does not make
participation in the HSA mandatory
Gives the employees who participate in an HSA complete portability in transferring their
accounts at any time
List curated by Larry Grudzien, Attorney at Law
Considerations of an HSA
A more robust list of potential advantages:
9. $ Set-up Fee
$ Transaction Fees
$ Maintenance Fees
$ Account Closing Fee
9 | HSA: Employee Benefit Express
Part 1 Intro
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Considerations of an HSA
Negative Considerations
Fees
Like most bank accounts, HSAs also have associated fees – including:
These fees may vary, so consider these costs when you’re shopping for an account.
Administration
The ball is now in your court. You no longer have a Primary Care Physician to act as
the middle man. You’ll have to do the shopping and make the decisions based on
the information you find. This also makes you responsible for all the IRS reporting
and having back-ups and justifications for your records.
Information
It can be difficult to gain access to accurate medical pricing and quality of service.
When time isn’t on your side, in the case of an emergency, you may not be considering
the best financial option to get care.
Slow-start
If your financial situation doesn’t allow for you to accumulate funds and have them
rollover, then you may not witness the long-term HSA benefits right away.
10. 10 | HSA: Employee Benefit Express
Part 3 Additional Resources
You have coverage other than the HDHP/HSA (exceptions
listed in Outside Coverage on p16)
You are enrolled in Medicare
You can be claimed as a dependant on somebody else’s
tax return
You are not required to gain permission from anyone
before applying for an HSA
Your account will be safe - the institution, known as the
account trustee, is required to:
!
!
!
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Part 2 How HSAs Work
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Establishing an HSA
There is a particular order in which you should set up your account. It is required
to be enrolled in an HDHP before applying for a Health Savings Account; however ,
some institutions will let you start applying before your HDHP takes effect - allowing
you to have funds available when your plan starts. Once you have a High-Deductible
Health Plan, you may start searching your area for a bank or credit union that offers
health savings accounts. Keep in mind that you will not qualify if:
How to actually set up the account will vary, but most banks offer both electronic
and paper forms to get started. Please note:
11. 11 | HSA: Employee Benefit Express
Part 3 Additional Resources
After a service, the doctor will submit a claim to the insurer
Once the insurer has the claim, they will apply any eligible
discounts
The amount paid will count towards the annual deductible
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Part 2 How HSAs Work
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If the HSA has insufficient funds, then the amount will need to be paid out-of-pocket;
however, the out-of-pocket expense can be reimbursed once the HSA has sufficient
funds. This does not apply if the deductible has already been met.
Important note - Save receipts as proof for the IRS or the insurer.
In terms of using your funds, a qualified medical purchase, such as a prescription
medicine, you would just have to make sure that is covered in your specific plan
before the purchase. As for when you require a service, there is a general procedure
similar to having a traditional plan:
Using the Account
12. 12 | HSA: Employee Benefit Express
Part 3 Additional Resources
2016 Coverage Levels
$3,350 Individual
$6,750
2015
$3,350
$6,650
2014
$3,300
$6,550 Family
$1,000$1,000$1,000 Catch-up
Annual HSA Contribution Amounts
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Part 2 How HSAs Work
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HSA Expenses & Coverage
The funds you and your employer place into the account are known as contributions.
This is the sum of money that will supplement all your deductibles, coinsurance
payments, and other qualified expenses. While the deductibles are higher,
remember that insurance premiums are also lower (and there’s money saved
with the tax advantages) - meaning that you could use these savings to buffer the
costs of the higher deductibles. There is a limit on the combined amount any source
can fund into the account:
Catch-up Contributions
To even the benefits of having an HSA at a younger age through retirement, the IRS
also allows individuals 55+ the ability to make catch-up contributions to the account.
Contributions
13. 13 | HSA: Employee Benefit Express
Part 3 Additional Resources
2016 Coverage Levels
$6,550 Individual
$13,100
2015
$6,450
$12,900
2014
$6,350
$12,700 Family
Annual Maximum Out-Of-Pocket Limits for HDHP
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Part 2 How HSAs Work
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HSA Expenses & Coverage
A primary benefit of having a High-Deductible Health Plan (HDHP) is that there is
an overall limit on how much you will pay out-of-pocket (OOP). This means,
once you have satisfied your out-of-pocket maximum, the insurance will cover the
remainder of your health expenses for the policy period. In terms of what will count
towards this OOP maximum - the annual deductible, copays, and coinsurance will
all go toward this maximum. View the most recent annual limits below:
Note: It can be a balancing act in choosing higher Out-of-Pocket maximums for a
lower monthly premium – having such a set-up could help with accumulating HSA
funds.
Out-of-Pocket Expenses
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2016 Coverage Levels
$1,300 Individual
$2,600
2015
$1,300
$2,600
2014
$1,250
$2,500 Family
Annual Minimum Deductible Amount Limits for HDHP
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Part 2 How HSAs Work
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As notable from the type of plan (High-Deductible), the deductible is the first amount
to work through before you start to receive more assistance with healthcare costs.
Thismeansyouwillbearthebruntoftheinitialcostsonyourown.Oncethespecified
deductible is satisfied - insurance will contribute a percentage of the total
costs and charge you a coinsurance percentage. Then, as noted before, once the
OOP maximum is met, insurance will cover the rest. Since it is a fixed amount, then
the deductible has a set minimum. View the most recent HSA-qualified deductible
minimums below:
Deductibles
HSA Expenses & Coverage
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Part 3 Additional Resources
Ambulance
Annual Physical Exam
Body Scan
Chiropractor
Dental Treatment
Eye Exam
Hearing Aids
Labratory Fees
Nursing Home
Oxygen
Psychologist
Surgery
Transplants
Wheel Chair
X-ray
Prescriptions
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Part 2 How HSAs Work
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You’re probably wondering how well an HDHP will cover your expenses. Since HSAs
are subject to the same insurance laws and regulations as other policies, like HMOs
and PPOs, then their coverage is comparable to the more traditional plans.
Some covered Medical Expenses may include:
See IRS publication 502 for a full list of included/non-included medical expenses:
http://www.irs.gov/publications/p502
Preventive Services
It’s uncertain what your policy will entail when it comes to preventive services. Plans
can potentially be limited or unlimited and/or cover 100% or charge co-pays.
It’s more or less a case by case basis and you need to research a plan that fits your
needs.
Coverage
HSA Expenses & Coverage
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Part 2 How HSAs Work
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Unless your spouse or dependent also has an HDHP, then basically any other type
of coverage will disqualify you (listed below):
• Dependent on someone else’s tax return
• Enrolled in Medicare/Medicaid
• Enrolled in HMO/PPO (including coverage under a spouse)
• VA Benefits
• Coverage through Health Reimbursement Arrangement (HRA) or Flexible
Spending Account (FSA)
However, there are a few variants of HRAs and FSAs that are compatible with an
HSA:
• Auto
• Dental only
• Vision only
• Insurance for a specific disease or illness, as long as it pays a specific
dollar amount when the policy is triggered
• Hospital Indemnity
• Long Term Care
• Disability
• Wellness programs offered by your employer, if they do not pay for
significant medical benefits
• Worksite employee assistance programs (EAP), if they do not pay for
significant medical benefits
Outside Coverage
HSA Expenses & Coverage
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Part 3 Additional Resources
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The purpose behind this guide was to be informative - not endorse having an HSA.
To learn more about HSAs, please consider the following resources:
IRS Publication 969 - overall guide to HSAs
http://www.irs.gov/publications/p969/ar02.html
HSA Center - general HSA information and FAQs
http://www.hsacenter.com/index.html
Healthgrades Inc. - provider of hospital / doctor / service rates
http://www.healthgrades.com/
Congressional Research Service - comparison of tax-advantaged accounts
https://www.fas.org/sgp/crs/misc/RS21573.pdf
Patient Advocate Foundation HSA Resource - additional HSA information
http://www.patientadvocate.org/requests/publications/Guide-To-Health-Savings-Account.pdf
IRS Publication 502 - list of covered & noncovered expenses
http://www.irs.gov/publications/p502/ar02.html
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Benefit Express is the leading middle market, cloud-based platform for employee
benefits and health exchange services with a focus on flexibility.
By offering technology that integrates all benefits, in a one stop shop, Benefit Express
provides simplicity to complex plans and offers a very custom-made experience
to engage and educate employees while offering employers an ease of benefit
management that is unmatched in market.
Benefit Express provides a full range of services including, benefit enrollment,
management and administration as well as direct bill services, reimbursement
account administration, carrier bill reconciliation, total compensation statements,
and a full service call center.
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