What is a Health Savings Account (HSA), paired with a High Deductible Health Plan?

 

A Health Savings Account is an account that allows you to accumulate funds deposited by RCPS on your behalf, as well as your own pre-tax contributions, to cover healthcare expenses toward your deductible.  You must be enrolled in UnitedHealthcare’s High Deductible Health Plan (HDHP).


Again for Open Enrollment 2017!

  •  FIRST TIME enrollees (during Open Enrollment), in the HDHP with HSA plan:
    • Will have one-half of the annual premium credit deposited in the employee’s Health Savings Account no later than 1/6/17 provided that the account is open to receive the deposit. An employee must open an account by 12/16/16. If the account is not open and available for deposit, the employee will not receive one-half of the annual premium credit, but will instead receive per pay period deposits.

    • There will be no additional contributions to the account by RCPS until the payroll of 6/15/17, at which time the regular semi-monthly contributions will begin.

    • If an employee leaves his/her covered position with RCPS prior to the 6/15/17 paycheck, his/her final paycheck(s) will be debited the prorated amount owed.  If there are not enough funds in the final paycheck(s), the employee will be billed any amount owed to the district. 

 How to open a Health Savings Account, HSA

  • If you choose the HDHP with HSA during Open Enrollment, open your account by 12/16/16.  If you are a new hire or if you choose the HDHP with HSA due to a Qualifying Event (QE), please establish an HSA bank account as soon as possible, but no later than within 31 days of your date of hire or QE. Please go to the Optum Bank website:  http://www.optumbank.com/

  • Select “Enroll Now” and Click on “Open An HSA”, Click “Continue”. When asked for “Employer or Financial Advisor Number”, enter our group number: 717709.

  • HDHP Effective date: 1/1/17 for Open Enrollment.  If you are a new hire or this is due to a QE, the effective date is the first of the month following your date of hire or the first of the month following the date of the QE.

  • You will receive a letter from Optum Bank with your card or a letter requesting additional information from you if needed. If asked for additional information, please respond to Optum as soon as possible.

HSA advantages

  • If you wish to contribute additional money to your HSA account pre-tax, you must complete a new application each year and submit it to Payroll. Go to the RCPS Intranet website, Human Resources Intranet page, "Forms - Benefits” link, and print an HSA contribution form.  Complete and submit this form to payroll. You can change the per pay period contribution to your account anytime throughout the year. You must not exceed the IRS maximum contribution each year which includes both employee and employer contributions made on your behalf. 2017 IRS maximum for individual $3,400 and for family $6,750. HSA catch up (for age 55 and older) $1,000.
  • Out-of-Pocket Costs Reduced: You can use the money in your HSA to pay for eligible medical and prescription expenses and satisfy your plan’s annual deductible.

  • Account Portability:  Unused account dollars are yours to keep even if you retire or leave the company.
  • Healthcare dollars can grow over time:  You can also invest your HSA dollars in select funds.
  • HSA dollars can be used for future eligible expenses such as medical, dental or vision expenses.

 

 

                                   

HSA Eligible expenses

 

The products and services listed below are examples of eligible expenses for payment under your HSA, to the extent that such services are not covered by your medical, vision and dental insurance plans. This list is not all-inclusive; additional expenses may qualify, and the items listed below are subject to change in accordance with IRS regulations. Please refer to IRS Publication 502 to verify that your expense is eligible.

Abdominal Supports

Acupuncture

Alcoholism treatment

Artificial limbs & teeth

Asthma treatments/nebulizer

Bariatric Surgery

Blood pressure monitoring devices

Body scans (MRI, CAT scan)

Breast reconstruction surgery following mastectomy

Co-insurance amounts and deductibles

Contact lenses – also materials & equipment

Dental procedures, non-cosmetic

Dentures and denture adhesives

Diabetic supplies

Diagnostic items/services

Drug addiction treatment

Eye Exams

Eyeglasses-prescription sunglasses/safety glasses

Flu Shots

Fluoridation device or services

Gambling problem treatment

Hearing aids

Home Health Care

Hospital services

Hot/cold packs

Inclinator

Individual counseling (to alleviate or prevent a physical or mental defect or illness)

Insulin

Laboratory tests

Long Term Care Premiums

Laser eye surgery/Lasik

Medical Alert necklace or bracelet

Medical Records charges

Mental health treatment facility

Nursing services provided by a nurse or attendant

Obstetrical expenses

Occlusal guard to prevent teeth grinding

Operations

Optometrist

Organ donors/transplants

 

Orthodontia

Osteopath fees

Ovulation monitor

Oxygen

Patterning exercise

Personal trainer fees

Physical exams

Physical therapy

Prenatal/Postnatal exams

Prescription drugs (prescription drugs imported from another country are not covered)

Weight loss program/

drugs – if prescribed by a physician

Preventive care screenings

Prostheses

Psychiatric care

Psychoanalysis

 

Psychiatric care

Psychoanalysis

Psychologist

Screening tests

Sleep deprivation treatment

Smoking cessation programs and medications

Speech Therapy

Sterilization procedures

Support braces/wraps

Surgical Stockings

Taxes on medical services and products

Transplants

Transportation expenses for person to receive medical care

Vaccines/

Immunizations

 

 

 

HSA tax provisions and eligibility requirements

 

  • Contributions to your HSA account are made pre-tax and withdrawals from your account for eligible medical expenses are tax free.
  • Earnings on the account are not taxed and there is no lifetime maximum accumulation of your HSA account.
  • Withdrawals for reasons other than eligible medical expenses taken before age 65 are subject to additional 20% penalty but there is no distribution required at age 70 ½.
  • HSA account holder must not be covered by any other health plan (i.e. Medicare, Tricare, Group, and Individual).
  • Cannot be covered by a spousal medical FSA and cannot be claimed as a dependent on another person’s tax return.

 

 

Limited Purpose Health Flexible Spending Account (FSA)

 

  • You may only enroll in a Limited Purpose Health FSA. With the Limited Purpose Health (FSA), only dental and vision expenses are eligible for reimbursement; medical expenses are not eligible for reimbursement.

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