2018 SPENDING ACCOUNTS AND HEALTH SAVINGS ACCOUNT ANNUAL ENROLLMENT OVERVIEW. October 2017

Transcription

1 2018 SPENDING ACCOUNTS AND HEALTH SAVINGS ACCOUNT ANNUAL ENROLLMENT OVERVIEW October 2017

2 What We Will Cover Today What s New for 2018 Flexible Spending Accounts (FSA) Overview What Is a Flexible Spending Account Health Care FSA Dependent Care FSA Limited Purpose FSA How to Get Reimbursed Health Savings Account (HSA) Overview What Is a Health Savings Account Prepaid MasterCard Spending Account Mobile Center Spending Account Service Center 2018 Annual Enrollment Dates Contact Us Questions 1

3 WHAT S NEW FOR

4 What s New For 2018 The Health Care FSA and Limited Purpose FSA annual contribution limit is increasing to $2,600 (up from $2,550 in 2017). The HSA annual contribution limit is increasing to: $3,450 for individual coverage (up from $3,400 in 2017) $6,900 for family coverage (up from $6,750 in 2017) 3

5 FLEXIBLE SPENDING ACCOUNTS (FSA) OVERVIEW 4

6 What is a Flexible Spending Account? A Flexible Spending Account (FSA) is a benefit plan that allows you to put aside pre-tax dollars to pay for qualifying expenses There are three FSAs available to you: Health Care FSA Dependent Care FSA Limited-Purpose FSA 5

7 Health Care FSA Health Care FSA What Does a Health Care FSA Cover? A Health Care FSA can be used to pay for eligible medical, dental, and vision expenses that cannot be reimbursed through insurance or any other arrangement. A Health Care FSA can be used to pay for eligible expenses incurred by you, your spouse, and your eligible dependents. A Health Care FSA can be used to pay for eligible expenses incurred during the plan year (January 1 through December 31). 6

8 Health Care FSA Eligible Expenses Medical Deductibles Co-pays/coinsurance Out-of-pocket expenses Physical exams Prescription drugs Chiropractic care Contraceptives Over-the-counter medicines when accompanied by a physician s note Testing supplies Hearing exam and hearing aids Nursing services in hospital, nursing home or your home Dental Deductibles Co-pays/co-insurance Examinations Fillings and bridges Dentures Orthodontia Covers lump sum or contract term payments made during the plan year. Must provide Orthodontia contract Vision Examinations Glasses (frames and lenses) Contact lenses and supplies Corrective eye surgery For the most up-to-date information, please visit: for Qualifying Medical Expenses. 7

9 Health Care FSA How Does the Health Care FSA Work? You must make an election during Annual Enrollment Annual election contribution limits: Minimum: $120 Maximum: $2,600 The entire election amount is available to you at the beginning of the plan year Pre-tax payroll contributions are taken throughout the plan year Use the Prepaid MasterCard to pay providers directly or get reimbursed via check or direct deposit by submitting a claim Time periods for incurring and submitting claims: Remaining balance up to $500 will carryover into the next plan year 8

10 Dependent Care FSA Dependent Care FSA What Does a Dependent Care FSA Cover? A Dependent Care FSA can be used to pay for eligible childcare and adult care expenses. A Dependent Care FSA can be used to pay for eligible expenses incurred for your children under age 13 or your spouse or dependent who is incapable of self-care. A Dependent Care FSA can be used to pay for eligible expenses incurred during the plan year (January 1 through December 31). 9

11 Dependent Care FSA Eligible Expenses Child Care/babysitting services in your home or someone else s (must be claimed on income taxes) Expenses for a Day Care Center (all state and local licensing requirements must be met) Pre-school Expenses After School Care Summer Day Camp Elder Care For the most up-to-date information, please visit: for Qualifying Dependent Care Expenses. 10

12 Dependent Care FSA How Does the Dependent Care FSA Work? You must make an election during Annual Enrollment Annual election contribution limits: Minimum: $120 Maximum: $5,000* *The combined IRS maximum is $5,000 for married couples filing jointly, $2,500 each if filing separately Reimbursable funds accumulate as you make contributions Pre-tax payroll contributions are taken throughout the plan year Use the Prepaid MasterCard to pay providers directly or get reimbursed via check or direct deposit by submitting a claim Time Periods for Incurring and Submitting Claims: Use it or lose it no carryover 11

13 Limited Purpose FSA Limited Purpose FSA What Does a Limited Purpose FSA Cover? A Limited Purpose FSA can be used to pay for eligible dental, vision, preventative care, and post-deductible medical expenses that cannot be reimbursed through insurance or any other arrangement. A Limited Purpose FSA can be used to pay for eligible expenses incurred by you, your spouse, and your eligible dependents. A Limited Purpose FSA can be used to pay for eligible expenses incurred during the plan year (January 1 through December 31). 12

14 Limited Purpose FSA How Does the Limited Purpose FSA Work? Available to colleagues who enroll in the $1,500 Deductible Plan or $2,850 Deductible Plan and the HSA Coordinates with your HSA enrollment You must make an election during Annual Enrollment Annual election contribution limits: Minimum: $120 Maximum: $2,600 The entire election Amount is available to you at the beginning of the plan year Pre-tax payroll contributions are taken throughout the plan year Use the Prepaid MasterCard to pay Providers directly or get reimbursed via check or direct deposit by submitting a claim Time Periods for Incurring and Submitting Claims: Limited Purpose FSA Last Day to Incur a Claim Last Day to Submit a Claim Carryover Balance Maximum 2017 Plan Year December 31, 2017 March 31, 2018 Up to $ Plan Year December 31, 2018 March 31, 2019 Up to $500 13

15 Limited Purpose FSA How Does the Limited Purpose FSA Work? Eligible dental, vision, and preventative care expenses can be claimed at any time during the plan year Eligible post-deductible medical expenses can only be claimed after you meet the applicable $1,500/$2,850 HDHP deductible for the plan year Remaining balance up to $500 will carryover into the next plan year 14

16 How To Get Reimbursed Use your Prepaid MasterCard You have instant access to your account funds for: eligible health care and dependent care expenses At the point of service: the pharmacy counter, dentist, optometrist or doctor s office, daycare center and wherever MasterCard cards are accepted. Use the Mobile App This free application (iphone and Android) allows you to: view your balance submit receipts sign up for text messages about claims and payments access to your account at your fingertips get reimbursed by check or direct deposit Use Online Claim Submission* Mail or Fax Claim Submission* Step by step instructions guide you through the process to submit a claim online at the Spending Account Service Center website accessible by: Going to Colleague Connect Going directly through Reimbursement is made via check or direct deposit Claim forms can be found on the Spending Account Service Center website accessible by: Going to Colleague Connect Going directly through Reimbursement is made via check or direct deposit * Appropriate documentation is required. You must include supporting documentation with claim submission. * Appropriate documentation is required. You must include supporting documentation with claim submission.. 15

17 HEALTH SAVINGS ACCOUNT (HSA) OVERVIEW 16

18 Health Savings Account What is a Health Savings Account? A Health Savings Account (HSA) is a tax-advantaged savings account that allows you to set aside tax-free dollars to pay for qualifying medical expenses or to use during retirement An HSA is a bank account, not a benefit plan. You own it, so it stays with you even if you change employment or retire An HSA has two parts: Cash Account (interest-bearing and FDIC insured) and an optional Investment Account (to support long-term investment goals) How Does the HSA Work? You must enroll in the HSA-qualified $1,500/$2,850 HDHP during Annual Enrollment You may elect to make pre-tax payroll contributions or make after-tax contributions online IRS contribution maximums apply for each tax year (January 1 December 31) Use the Prepaid MasterCard to pay providers or withdraw funds online via direct deposit 17

19 Health Savings Account What Does an HSA Cover? An HSA can be used to pay for eligible medical, dental, and vision expenses that cannot be reimbursed through insurance or any other arrangement. An HSA can be used to pay for eligible expenses incurred by you, your spouse, and your eligible dependents (even if your spouse/dependents are not covered by your HDHP health plan). An HSA can be used to pay for eligible expenses incurred from the opening date of the account onward. An HSA can be used to pay for non-eligible expenses but a tax penalty will apply. Eligible expenses* include, but are not limited to: Deductibles, copayments, and coinsurance Prescription medications Glasses, LASIK eye surgery and contact lenses Dental and orthodontic services Chiropractic and acupuncture treatments *For the most up-to-date information, please visit: for Qualifying Medical Expenses. 18

20 Health Savings Account What Rules Apply to an HSA? Contributions can only be made if you are actively enrolled in the HSA-qualified $1,500 or $2,850 High Deductible Health Plan (HDHP) Contributions cannot be made if you are enrolled in any other medical plan that is not an HSAqualified HDHP (including yours or your spouse s Health Care FSA) You cannot make HSA Contributions if you are claimed as a dependent by someone else Earnings and withdrawals are tax-free for qualified health care expenses but are subject to a tax penalty if used for non-qualified health care expenses After you turn 65, HSA funds can be withdrawn for any reason, however you will need to pay income taxes on this money if you use the funds to pay for non-qualified health care expenses New HSA accountholders must accept HSA terms & agreements before funds can be accessed New HSA accountholders will be required to go through the banking verification process and pass identification verification before the account is established HSA accountholders must keep supporting documents to prove distribution was for qualified health care expenses. If IRS requests receipts for verification purposes, failure to provide those receipts could result in having to pay a penalty 19

21 Health Savings Account How is an HSA different from a Health Care FSA? No claims filing. Make distributions yourself and keep supporting documentation for tax reporting purposes only No plan year Funds are available to you to save, spend, or invest without a deadline You can take distributions for qualified expenses at any time so long as they were incurred after the HSA was established Funds are made available to spend and/or invest as you contribute Contributions may earn interest or be invested Account is portable take it with you if your employment changes You may adjust your contribution amounts at any time 20

22 Health Savings Account Special Considerations When contributing to an HSA, you cannot enroll in the Health Care FSA but you may enroll in the Limited-Purpose FSA An Investment Sweep may be set up to divert funds from your Cash Account to your Investment Account once you accumulate an HSA balance of at least $1,000 Investment funds are not FDIC-insured. Invested funds are subject to risks, including changes in values and the possible loss of the amount you invested Funds in the cash account and investment account can be used to pay for eligible health care expenses. If you use all the funds from the cash account and need additional funds, you can move the investment monies back into the cash account to pay for expenses. It takes approximately 72 hours to receive funds from the investment account to the cash account If you have an HSA account with another Trustee/Custodian, you can transfer the funds to the Trion HSA to avoid administrative fees Transfer forms can be found on the Spending Account Service Center portal under the Tools & Support tab. Complete the Transfer Form and send it to the previous Trustee/Custodian for processing 21

23 PREPAID MASTERCARD 22

24 What is the Prepaid MasterCard? The Prepaid MasterCard is a special-purpose MasterCard that gives you an automatic way to pay for eligible expenses. The Prepaid MasterCard lets you electronically access the amount you elected to contribute to your Health Care FSA, Limited Purpose Health Care FSA, Dependent Care FSA and HSA. All card transactions are automatically deducted from your spending account or HSA balance. Using the Prepaid MasterCard helps keep cash in your wallet. No more claim forms, which means no more waiting for reimbursement. Just swipe and go, it s that easy! 23

25 Important Facts About the Prepaid MasterCard Allows you to pay for eligible expenses with a special purpose MasterCard. Five year expiration date only new participants to the FSA or HSA will receive Prepaid MasterCards Replacement/Lost/Stolen cards - $10.00 fee HSA terms & conditions must be accepted to access HSA funds with the Prepaid MasterCard Since FSAs are tax-advantaged plans, the IRS requires that participants save itemized receipts for every card transaction. You may be required to produce documents to prove the expense s eligibility. If proper documentation is not produced when requested, you will have to reimburse your account (via check or money order) or lose access to your FSA. REMEMBER TO ACTIVATE YOUR PREPAID MASTERCARDS AS SOON AS YOU RECEIVE THEM IN THE MAIL. 24

26 SPENDING ACCOUNT MOBILE CENTER 25

27 Mobile App For Flexible Spending Accounts and HSA Available for download for iphone, ipod Touch, ipad, or Android -powered devices. Get started with the Spending Account Mobile Center App in minutes. The mobile app allows you to: View your FSA or HSA balances. Submit FSA claims and upload receipts for substantiation. View account activity and receive alerts via text message. Make a contribution or take a distribution from your HSA. Download the Spending Account Mobile Center app for your chosen device from the Apple App Store or Google Play. 26

28 SPENDING ACCOUNT SERVICE CENTER 27

29 Spending Account Service Center Welcome 28

30 Spending Account Service Center Account Summary 29

31 Spending Account Service Center Expense Tracker 30

32 Spending Account Service Center HSA Investment Account 31

33 Spending Account Service Center HSA Fund Performance 32

34 2018 ANNUAL ENROLLMENT DATES 33

35 2018 Health and Benefits Annual Enrollment October 23 to November 10, 2017! All benefits-eligible colleagues will be required to actively elect benefits for the Spending Accounts and the Health Savings Account during this period. 34

36 CONTACT US 35

37 Contact Us Trion Spending Account Service Center Phone: , any business day, from 8:30 am to 5:30 pm ET Mail: Trion FSA Service Department 2300 Renaissance Boulevard King of Prussia, PA Web Site: Fax:

38 Questions 37

39 The Patient Protection and Affordable Care Act is a complex law. Any statements made by Trion Group, a Marsh & McLennan Agency, LLC Company concerning tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as accounting, tax, or legal advice. We recommend that you seek the advice of your own tax, accounting and legal advisers as to whether or not the health plans you select are compliant with the Patient Protection and Affordable Care Act, including the minimum essential coverage requirements. No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC Company Marsh & McLennan Agency, LLC Company. All Rights Reserved.