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Group Benefits

 
HSA Plans

HSA plans provide a unique way for you to lower the overall cost of your medical benefits while allowing you control over spending. These plans replace a traditional low deductible high premium plan with a higher deductible but lower premium plan. For healthy individuals, this option ultimately provides a savings on the cost of medical coverage while insuring that catastrophes are covered. Additionally, with an HSA, the money you put into the plan is tax deferred and is tax free if used for medical costs. *Our consultants are experts at finding and implementing the right plan for your needs.

*For advice relating to taxes, please consult your tax advisor.

Health Savings Account (HSA) FAQs

Do I have to have health insurance to have a health Savings Account (HSA)?

Yes. To be eligible to open and contribute to an HSA, you need to be enrolled in a qualified high-deductible health plan (HDHP), meaning one with a minimum annual deductible of $1,250 for self-only coverage or $2,500 for family coverage.

Who owns the HSA?

You do.

Does the money in my HSA earn interest?

Yes, and tax-free. Health Equity calculates, compounds, and credits interest monthly based on the applicable rate for different tiers of the account balance.

Can I invest the money in my HSA?

Yes. Similar to an IRA, many HSAs let you choose to invest your account balance in stocks/bonds, mutual funds, CDs, and/or annuities. With your Health Equity HSA, you can typically invest in pre-selected mutual funds after you reach a $2,000 balance in your account.

Is my HSA FDIC-Insured?

Yes. However, eligible monies in investments are not FDIC-insured.

Can I roll the money from my IRA into my HSA?

Yes. You can make a one-time rollover from your IRA into your HSA. You can’t, however roll money into your IRA from your HSA. Note that a rollover will count against annual contribution amounts.

Who can put money in my HSA?

Anyone can contribute to your HSA. However, only the account holder and the employer receive tax deductions on monies contributed. Only your contribution is tax-free.

Do I have to claim contributions from others on my income taxes?

No. You don’t have to claim contributions you receive from others, whether your employer or your family, as gross income on your annual tax return.

How much money can I contribute to my HSA?

In 2013, the maximum contribution as set by the IRS for an individual account was $3,250 and the maximum contribution for family coverage was $6,450. In 2014 these limits have increased to $3,300 and $6,550 respectively. People over the age of 55 can make an additional “catch-up” contribution of $1,000. These limits are the save regardless of the source of the contribution.

What happens to the money in HSA if I leave my job or I retire?

It’s yours! You take that money with you wherever you go. The HSA is in your name. It’s your account. If you’re on Medicare or go to another employer that doesn’t have a qualified HSA plan, you can still use your HSA money to pay for co-pays and qualified medical expenses, but won’t be able to continue to make contributions to your HSA.

Does the money I have in my HSA roll over from year to year or Do I lose the money at the end of the year?

It’s yours. The money rolls over from year to year. You don’t lose the money left in your HSA or the interest it’s earned.

Can I take the money out of my HSA at any time?

Yes. You can take money out anytime tax-free and without penalty as long as it’s to pay for qualified medical expenses. If you take money out for other purposes, however, you’ll have to pay income taxes on the withdrawal plus a 20% penalty.

What is a qualified medical expense?

Qualified medical expenses are those that would generally qualify for medical, dental, and vision expenses income tax deductions as outlined by the IRS.

Do I Pay Co-Payments if I have an HSA?

Maybe. If your health insurance plan requires a co-payment, you will pay the co-payment as part of the full amount your insurance has contracted to pay for the visit, which you’ll pay in full until meeting your deductible. Whether you continue to pay co-payments after meeting your deductible depends on the specifics of your health plan. You can always use your HSA to pay for your co-payments.

I am a parent on an HSA-based plan, but didn’t cover my children under this plan. Can I use the money in my HSA to pay for my children’s medical expenses, co-payments, and deductibles?

Yes . The money in your HSA can be used to pay for qualified medical expenses of any family member who qualifies as a dependent on your tax return. However, if the dependent isn’t covered under your plan, his/her expenses won’t be applied towards your deductible.

My domestic partner is covered on my insurance plan. Can I use my HSA for their medical expenses?

Yes. If you domestic partner meets the IRS qualifications of a tax dependent, you can legally use your HSA funds for his/her medical expenses.

Do I pay for the full doctor’s office visit when I go to the doctor?

Yes. You’re responsible to pay the amount your insurance has contracted to pay your doctor, typically a discounted rate, until your deductible is met. You can use your HSA for this expense.

It’s best to have your doctor’s office put the charge through to your insurance, so that you receive credit toward your deductible and know exactly what to pay. Some doctors may require that you pay up front, but most bill your insurance, and then bill you only once the claim has been processed. Make sure you don’t pay more than your portion shown on the explanation of benefits you receive from your insurance carrier.

I’m retired. Can I still contribute to my HSA?

Yes, provided you’re covered by a qualified HSA insurance plan and aren’t on Medicare.

If my spouse is on Medicare, can I contribute to an HSA?

Yes. As long as you’re not enrolled in Medicare yourself and are still enrolled in a qualified HSA insurance plan, you can contribute to your HSA.

Can I use the money in my HSA for non-medical expenses?

Yes. If you do though, and are under 65, you’ll be taxed on the money you use and assessed a 20% penalty. Once you’re 65, you’ll be taxed for monies used for non-medical expenses, but won’t pay a penalty.

Can I use my HSA for eye classes, contacts, or Lasik surgery?

Yes. These expenses may not apply to your medical insurance deductible though.

Can I use my HSA to pay for dental expenses and orthodontics?

Yes. These expenses may not apply to your medical insurance deductible though.

Can I use my HSA to pay for voluntary cosmetic surgery?

The HSA can be used for cosmetic surgery Only if prescribed by a physician and deemed to be medically necessary.

Can I access my HSA online?

Yes. You can see your account balances, HSA debit card balance, claim transactions, and more online. You can also pay providers, request reimbursements, and manage your personal information.

HSA 101: Media Library

Add New Horsepower To Your Financial Plan

~Learn how an HSA can help you save more for your retirement~

 

How to Catch Up With Rising Health Care Expenses

~Learn how an HSA can reduce your tax liability and help your pay check go farther~

 

Build Your Health Finance Safety Net

~Learn how to shelter your income and benefit from tax free interest on HSA funds~

 

 

Health Reimbursement Arrangement (HRA) FAQs

Do I have to have health insurance to have a health Reimbursement Account (HRA)?

No, but HRAs are usually provided to complement a high-deductible health plan (HDHP), but can be paired with any type of health plan or used alone. Once your HRA funds are gone, you pay all new and remaining expenses out of pocket.

Who owns the HRA?

Your Employer.

Who can put money in my HRA?

Your Employer. HRAs are fully owned and funded by the employer.

Does the money in my HRA earn interest?

No. The accounts are not individually owned bank accounts and do not earn interest.

How much can be contributed to my HRA?

The amount contributed to your HRA is up to your employer.

What is an eligible health care expense?

It depends upon your employer, but generally the following expenses are eligible under an HRA plan:

-Health Insurance Deductibles

-Coinsurance and co-pays

-Other expenses included in IRS Publication 502

-Some insurance premiums

Eligible expenses must be incurred for the care of the employee and/or eligible members of the employee’s family and incurred within the benefit plan year.

What happens to the money in my HRA if I leave my job or retire?

Your employer determines whether or not you can continue to use your HRA funds for qualified expenses after you leave or retire.

Are my HRA funds available to me any time?

Again, this is determined by your employer, as many HRA plans provide an annual benefit that is available to you in full at the beginning of the plan year. While in other plans, HRA benefits accrue from month to month.

For example, your plan may provide $1,200 for the entire plan year accrued at $100 each month. You may only be reimbursed up to the maximum amount you’ve accrued at the time of the claim and reimbursed for the balance of your claim once you’ve accrued more funds.

What’s the maximum reimbursement amount from my HRA?

Employer determined. Your HRA benefit amount is determined by your employer and most plans will reimburse eligible expenses up to the full available balance in your HRA. If your plan is based on an accrual, you’ll only be reimbursed the amount that you’ve earned in the plan.

Does the money I have in my HRA roll over from year to year or do I lose the money at the end of the year?

Employer Determined. Whether or not your money rolls over to the next plan year is up to your employer.

Can I use the money in my HRA to pay for my children’s medical expenses, co-pays, and deductibles?

Yes. The money in your HRA can be used to pay for eligible medical expenses of any family member who qualifies as a dependent on your tax return provided the dependent is covered by your HRA.

My domestic partner is covered on my insurance plan. Can I use my HRA for their medical expenses?

Yes. If your domestic partner meets the IRS qualifications of a tax dependent, you can legally use your HRA funds for his or her qualified medical expenses. If your partner doesn’t meet the tax dependent qualifications, you can’t use your HRA.

How often can I request Reimbursements?

Every timeyou incur a qualified medical expense you can request reimbursement. If your plan is an accrual-type plan, you may only be reimbursed up to the maximum amount accrued at the time of the claim and reimbursed for the balance once you’ve accrued more funds.

Is there a deadline for submitting requests?

Yes. Some plans allow up to 990 days after the end of the plan year to request reimbursements for expenses incurred during the plan year, known as the run-out period.

How quickly can I get reimbursed for qualified medical expenses?

Typically reimbursements from HealthEquity HRAs takes five to seven days after HealthEquity receives your completed reimbursement request form and necessary documentation.

How can I get my reimbursement?

You can receive your reimbursement by check or direct deposit.

Can I use the money in my HRA for non-medical expenses?

No. Funds can only be used for qualified medical expenses as determined by your employer as outline in IRS Publication 502 (Medical and Dental Expenses).

Can I access my HRA online?

Yes. You can see your account balances, claim transactions, and more online. You can also request reimbursements and manage your personal information.