Hormel Foods Health Plan Options Employee Meeting FAQ s

Transcription

1 Hormel Foods Health Plans... 1 HSA Questions... 3 FSA & LPFSA... 6 Navigating the Connect Your Care Website... 7 Using the Payment Card... 8 Earning Interest & Investing Taxes Retirement & Preparing for Retirement Miscellaneous NOTE: These FAQ s are provided as a reference to help provide guidance and represent our best understanding of the topics at hand. Any benefit information provided will be governed by its legal plan document. It is your responsibility to research and seek the advice of professionals. Connect Your Care (CYC) is the current claims administrator for the flexible spending accounts (FSA) and Health Savings Accounts (HSA). Connect Your Care can be reached at Hormel Foods Health Plans Will the company continue to fund HSA Option 1 in future years? A. We cannot say for sure but believe the company contribution will continue for future years to the funded option. What are the scenarios where the Traditional Plan is best? A. Individuals have to look at their own medical expenses and situation to determine which plan option is best for them. It is hard to say what scenario would make the Traditional Plan Option the better choice. Is the wellness program deduction in addition to contributions listed? A. Yes, the wellness program paycheck deductions are in addition to the weekly contributions stated for the health plan options. Do the medical and prescription drug discounts still apply with the Healthy Savings Plan Options? A. Yes, all health plan options utilize the BCBS network of providers as well as Prime s network. Use your medical ID card at the time of incurring the medical expense to ensure proper processing of your charges and to receive the BCBS discount. You will also receive 1

2 Prime s discounted rate for prescription drugs by providing your prescription drug card to the pharmacy when filling a prescription. Why would I use my Prime prescription drug card at the pharmacy if I am responsible for the full price of the drug? A. Being a part of the Prime network allows a discount from the full cost of the drug and the claim can be processed through the health plan and be applied toward your deductible and out-of-pocket maximum. The maximum out-of-pocket, for example the HDHP Family coverage, is $8,000. Is that per person? A. The out-of-pocket maximum is for family total. There is also a per person maximum out-ofpocket maximum of $6,850. Preventative care has no deductible. What is the employee cost? A. There is no employee cost for care processed as preventive. If I am close to retirement, and don t have enough time to build up a balance in the HSA, would the Traditional Plan be better? A. Each individual is different, so reviewing anticipated medical expenses, goals and comfort levels along with using the online plan comparison tool will help guide you to what plan makes the most sense for you. You can access the tool at If I choose to enroll in the HDHP, can I go back to the Traditional Option the following year? A. Yes, as long as the Traditional Plan continues to be offered. How does the Out of Network out-of-pocket work differently? A. Contact Employee Benefits customer service at for information. What are the ways I can control out-of-pocket costs? A. Use the Blue Cross Blue Shield website ( to comparison shop medical procedure costs. Click on My Plan Details to see past claims and then Find a Doctor to determine future costs. B. Use the Prime Therapeutics website ( to compare prescription costs between pharmacies. C. Utilize my doctor or Quick Care clinics instead of urgent care. How can I find out what my medical and prescriptions costs are? A. You can visit the BCBS website ( and the Prime website ( to review your claims. You can also contact your pharmacy for a printout of your prescription expenses. 2

3 HSA Questions If my child is on our plan and covered secondary under another plan, can HSA dollars be used for child s medical expenses? A. Yes, you could use your HSA funds to pay for your child's qualified medical expenses per the IRS definition of qualified medical expenses as one incurred by the following and not subject to the same eligibility requirements as when making contributions: i. You and your spouse ii. All dependents you claim on your tax return iii. Any person you could have claimed as a dependent on your return except that: 1. The person filed a joint return 2. The person had a gross income of $3,900 or more 3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else s return Note: It is unlikely coverage under a non-hdhp secondary plan will coordinate benefits with a HDHP coverage. Can HSA account dollars be used for a domestic partner? A. No, a domestic partner is not eligible to be covered by HSA dollars unless he/she is the employee s tax dependent. The domestic partner may be covered by the high deductible health plan (HDHP), however, without being covered by the HSA account. If a spouse is age 55 but the employee is not, can employee contribute additional $1,000 for catch up contribution for the spouse? A. No. The additional catch up contribution can be made provided the spouse is HSA-eligible to make contributions. However, a spouse s catch up contribution cannot be made through Hormel payroll deductions or into the employee s HSA. The spouse will need to open a separate HSA since catch up amounts can only be made to the individual s HSA. If both the employee and the spouse are over 55 and eligible for an HSA, both could contribute $1,000 to his/her own HSA account but both cannot contribute to the same account. For more information on opening a separate HSA, contact Employee Benefits. How many Connect Your Care payment cards do you get for making medical payments? A. Initially one card is issued, but additional cards can be requested for dependent(s) at no cost. The additional card(s) can be requested online or by contacting Connect Your Care at

4 Can you increase or decrease the contribution to the HSA at any point of time throughout the year? A. Yes, you can adjust your contribution amounts at any time. You can elect to increase your contribution at To decrease your contribution, please contact Employee Benefits Customer Service. Any adjustments to your HSA are effective the first of the month following the change date. Can I add additional money to my HSA without having it deducted from my paycheck? A. Yes, you may make after tax contributions online via the Connect Your Care website. 1. Log in to 2. Navigate to Accounts & Balances 3. Scroll down to Manage HSA Contributions 4. Follow instructions provided Is there a limit as to how often you change your HSA contribution amount? A. No, there is no limitation on frequency of changes. If I make a change to how much I'm contributing to my HSA, how quickly does that take effect? A. The change in payroll deduction should be on the 1 st of the month following the change. Is there a limit to how much I can rollover each year in the HSA? A. No, any unused funds will rollover each year. My spouse has non-high deductible health plan coverage with his/her employer. My children and I are covered with the Hormel Foods plans. Can my children and I use the HSA? A. Yes, you and your children can use the HSA. Even though a spouse covered by a non-hdhp plan cannot have an HSA in his/her name, you can also use the HSA for your spouse s expenses. An HSA can reimburse qualified medical expenses of the account holder, his/her spouse and any tax dependents. What happens to the HSA if I die? A. If you are married, you may elect to have your spouse listed as a beneficiary and receive the HSA tax free. If you list a non-spousal beneficiary, the funds are no longer considered an HSA and are taxable as gross income to the beneficiary. Otherwise, the funds would go to your estate and the value included on your final tax return. Can the HSA be used to cover funeral expenses? A. No, the HSA cannot be used to pay for funeral or cremation services. Is the full amount available at the beginning of the year? A. Yes, Connect Your Care has set up HSA on Demand. This allows the full amount to be available (based on your annual election amount) at the first of the year. 4

5 I have other insurance such as Tricare. Can I be on the HDHP and have the HSA? A. There is no legal restriction keeping you from electing a HDHP with a non-hdhp plan but you need to understand the following: a. You are not eligible to contribute to an HSA if you have non-hdhp coverage. b. Most non-hdhp coverages will not coordinate benefits with HDHP coverage. I receive veteran assistance; can I contribute to the HSA? A. The HSA eligibility requirement for veterans with VA benefits has been revised for A veteran is now able to contribute on a pre-tax basis to a health savings account if they are receiving medical care from the VA for a service-connected disability. Please see a tax professional to clarify any details. Can I use the HSA to pay for past medical/dental/vision expenses? For example, I put in $3,000 in 2015 and have $6,000 in expenses. When I add another $3,000 in 2016, can I use those to pay for the outstanding 2015 bills? A. Yes, you can use the HSA to pay for past expenses provided the expenses were incurred after the initial establishment of the HSA. Is Long Term Care an eligible expense to use HSA funds? A. Long Term Care premiums can qualify and be paid with HSA funds. The amount is subject to limits based on age and adjusted annually. You will need to review the instructions for Schedule A (Form 1040) for amounts that can be deducted. Can I combine the balance of HSAs from a previous employer with the HSA offered through Hormel Foods Corporation? A. Yes, you can rollover balances from Archer MSAs and other HSAs into the HSA and the rollover amounts are not subject to the annual contribution limits. There may be additional guidelines for when and how often a rollover can occur. Forms can be found on the web site. Can I save up expenses and then submit them all at once? A. Yes, you can decide when and how you want to submit your expenses. If my child is disabled and enrolled in Medicare, who can be covered under the HSA? A. Your child s enrollment in Medicare does not prevent you from enrolling in a Healthy Savings Plan Option nor make you ineligible to contribute to your own HSA. Your child would be unable to contribute to an HSA due to his/her non-hdhp coverage. However, if your child qualifies as your tax dependent, qualified medical expenses for your child could be used from the HSA. As a side note - It is not recommended that they be covered under the HDHP due to the fact Medicare will generally not coordinate benefits with an HDHP. 5

6 If spouse has Medicare coverage is he/she able to utilize HSA funds for medical expenses? A. Even though a Medicare-covered spouse cannot have an HSA in his/her name, the employee s HSA can reimburse qualified medical expenses of his/her spouse and any tax dependents. If the account holder is age 65 or older, qualified medical expenses in addition to premiums for Medicare Part A, B or D, or a Medicare HMO may also qualify. However, premiums for a Medigap policy are not qualified expenses. If we are both employees at Hormel Foods and choose family coverage, can we both contribute to the HSA? A. The HSA will belong to the employee carrying the family coverage and you can contribute up to the annual family maximum. If you would like to have separate HSAs, the spouse may open up a separate HSA but payroll deductions could not be made through Hormel. If you choose to have separate accounts, the two of you will share the annual family maximum. Can a company couple choose employee only coverage and each have an HSA? A. Yes. You can each contribute up to the full single coverage yearly amount. The 2016 single person coverage contribution limit is $3,350 and the family coverage contribution limit is $6,750. If both employees have single coverage, your combined total would be $3,350 each or $6,700 total. Is the HSA on Demand uploaded up front and available on the payment card? A. Yes. Hormel Foods elected to use the HSA On Demand feature which allows the use of funds early in the year. Can you pay the deductible with your HSA? A. Yes When are the HSA on Demand funds available when I have mutual funds and other investments? A. Funds are available only after all HSA investment holdings have been depleted, including mutual funds and other investments. Participants are required to liquidate any investment holdings into the liquid, cash account portion of their HSA before HSA on Demand funds will be advanced. FSA & LPFSA Can I have just the dental and vision plan election and have the health care FSA? A. Yes, you can enroll in just the dental and vision plan and make contributions to the health care FSA. You cannot enroll in the limited purpose FSA (LPFSA) with only being enrolled in the dental and vision plan. The limited purpose FSA (LPFSA) is designed to be paired with a HDHP and an HSA. 6

7 Can we use the Connect Your Care payment card for dependent care FSA? A. No, the payment card is only for use with the health care FSA, LPFSA or HSA. You can submit a reimbursement request to Connect Your Care using the Connect Your Care mobile smartphone app or online via Using your phone, simply snap a picture of your receipts, enter service details and Connect Your Care will send your reimbursement to you or through direct deposit. Each dependent has to be entered in separately. What is the advantage of having and funding an LPFSA in addition to the HSA? A. If you want to fully fund the HSA and don t want to use it, but know you have dental or vision expenses within the year, you can fund the LPFSA and get the advantages of the additional pre-tax savings while your HSA goes untouched and grows. Another situation may be if you need to rollover a previous year s LPFSA or FSA election up to $500. What is the advantage of having and funding an LPFSA in addition to the HSA? A. If you want to fully fund the HSA and don t want to use it, but know you have dental or vision expenses within the year, you can fund the LPFSA and get the advantages of the additional pre-tax savings while your HSA goes untouched and grows. Another situation may be if you need to rollover a previous year s LPFSA or FSA election up to $500. Navigating the Connect Your Care Website What is the website to reference for the Flexible Spending Account or the Healthy Savings Account plan? A. or provides additional resources specific to Hormel Foods. Why do the claims from the insurance plan show up and duplicates show up under payment card transactions with an HSA plan? A. The claims feed comes over from the different claims administrators (Blue Cross Blue Shield, Delta Dental, Prime Therapeutics, VSP) and it does not reconcile against the payment card transactions. It is recommended that you close the claim or mark as paid by payment card to clear these flags under the "claims from insurance plan" section. You do not want to pay with the payment card and then reimburse yourself as this would be a duplicate reimbursement or be considered double dipping. Do I need to do anything online with the claims from insurance plan that have an orange flag on the HSA plan? A. It is recommended that you complete the action on each claim to change the status of the claim. This may be a duplicate if you have an HSA and paid the claim with your payment card. 7

8 Can I split payment for an LPFSA and HSA? A. Yes. If you have an expense that is eligible under the LPFSA but don t have enough funds in that account to cover it, the remainder will automatically be paid by the HSA. What if I don t do anything with the claims from the insurance plans? (HSA PLANS ONLY) A. The claims will remain in your claims from insurance plan "inbox until you mark the appropriate indicator to change the status. This section is not tied to the payment card transactions field. The four options to change the status are: Reimburse Myself, Save to HSA Save-It!, Mark as Paid, or Close Claim. More details can be found below. Reimburse Myself reimburse yourself for eligible expenses. Do not use if the payment card was used to pay for the transaction. Save to HSA Save-It! reimburse funds at a later date. Mark as Paid used when the payment card was used to pay for the expense. Select this option for any expense that s listed as ready for action that you have already paid. You will then receive two options. If you indicate that you paid out of pocket, the claim will get saved in HSA Save-It for you. If you indicate that you had used a health account to pay for it, the claim will be marked Closed. Close Claim used to close the claim if you want to reimburse yourself out of your LPFSA rather than HSA, or if you wish to take no further actions on this expense. The system asks to upload documentation, what is the best form of documentation? A. The best form of documentation is the Explanation Of Benefits (EOB) provided by the medical insurance (Blue Cross Blue Shield) or the dental insurance (Delta Dental). When an EOB is not available, documentation must include the following 5 pieces of information: 1. Name of the patient (you, your spouse or dependent) 2. Date the service was provided 3. Name of the service provider 4. Description of service 5. Amount/cost of item or service provided after processed by the plan I have set up a different address for the account and it will not stay. It reverts back to the employee s work address. A. This issue was resolved and you should have the ability to change the address on file. Using the Payment Card What causes my card to be suspended with an FSA account? A. The card is suspended if you do not provide required documentation for the FSA transactions to Connect Your Care within 45 days of the request. 8

9 If the FSA portion of my payment card suspends, will the HSA portion suspend as well? A. Yes. You will need to follow the steps to reactivate the card. How do I reactivate a suspended payment card? 1. Log on to your online or mobile account to see which claims require action. 2. Look for all claims marked Ineligible, Card Suspended, Repayment Required. Choose an action: a. Card Suspended Submit documentation online, or snap a picture with your phone and upload it in just seconds using the mobile app. TIP: Be sure your documentation includes patient name, service description, service date, location, and amount. An EOB from your health plan usually contains all the required information. b. Ineligible or Repayment Required Repay your account with a check. Mail to Claims Department, Attn: Repayment Department, P.O. Box Kansas City, MO OR Repay your account with a new claim. Enter a new claim request and documentation. Once approved, we will apply that reimbursement amount toward the amount owed instead of issuing you a reimbursement. If I try to use my payment card to pay a bill and the amount exceeds what is available in the HSA, will it still make the payment? A. If the payment transaction exceeds the available balance in the HSA, the card will be declined. However you do have options: a. If the provider accepts divided payment types, you can make a partial payment with your remaining funds and pay the rest out of pocket. OR b. You can pay out-of-pocket and reimburse yourself with the remaining funds in your HSA. Keep in mind the available balance will be the amount you are calculated to have in the account by the end of the year less any expenses already submitted. How do I know what my balance is on my payment card? A. Download the CYC Mobile smartphone app or sign into your online account to receive mobile phone text alerts to receive text messages to request account balance, claim and contribution information. To set up mobile phone text alerts: 1. Log in to 2. Navigate to My Profile 3. Scroll down to and select Manage Mobile Alerts 4. Follow instructions provided to set up mobile smartphone alerts 9

10 Is it possible I'm seeing variances in payment card swipe amounts due to transaction fees when using a payment card? A. It is possible that a transaction fee associated with using the card may be applied at a vendor or physician. While this is not typical, payment of this the fee will be the cardholder s responsibility. If I have both the HSA and the LPFSA, when making a dental or vision payment with the card, which will it draw from? A. If you have both the HSA and the LPFSA, payments using the card will draw from the LPFSA first when making a payment at the dentist s or optometrist s offices. When paying for a medical or pharmacy bill, it will pull from the HSA. B. Note in some cases, retail stores such as Costco, may have certain items such as eyeglass frames that do not process automatically. In those cases the card may pull the funds from the HSA. Is the payment card a credit or debit card? A. Debit There is no line of credit and it can be only be swiped for the available balance. Can I use my payment card to purchase gas for doctor s appointments? A. No, but you can do a claim for mileage. Earning Interest & Investing Are there fixed income investments? A. Yes, there are fixed income investments in the HSA Bank investment lineup. What are the investment fees? A. Investment fees may differ according to your investment choice. What is the investment default if you don't choose one? A. There is no default. You choose whether you want to invest your HSA dollars and what investment option(s) you want to elect. Can a person invest in both options simultaneously the Devenir and the TD Ameritrade? A. Yes, however, keep in mind there are fees associated with both options. When are the HSA On Demand funds available when I have mutual funds and other investments? A. Funds are available only after all HSA investment holdings have been depleted, including mutual funds and other investments. Participants are required to liquidate any investment holdings into the liquid, cash account portion of their HSA before HSA On Demand funds will be advanced. 10

11 What happens to my HSA On Demand account while investment funds are being liquidated? A. Because investments must be liquidated before HSA On Demand funds can be advanced, during that timeframe your HSA On Demand is frozen. Once the investments are liquidated, the HSA On Demand converts to active status. What is the interest rate on HSA contributions? A. The interest rate varies. You can contact Connect Your Care at , M-F, 7am - 9pm or Saturday 9am 1pm, CT. For Spanish speaking participants, they may call Taxes What sort of documentation will we get at the end of the year? Will we get something from Connect Your Care or the company for completing income tax forms? A. 1) By January 31 st, your employer will provide you with your W-2. Box 12-W of your W-2 will show pre-tax HSA contributions made to your account by you and your employer through payroll and may be used to complete Form ) By January 31 st, HSA Bank will send you a Form 1099-SA, reporting your total annual HSA distributions. This total includes funds spent using your HSA payment card and money withdrawn through online reimbursement requests. If you did not use any HSA funds, you will not receive Form 1099-SA. 3) By January 31 st, HSA Bank will send you a Form 1099-INT, reporting any interest your account has earned. 4) By May 31 st, HSA Bank will send you Form 5498-SA, which reports the total contributions made to your HSA for the prior tax year. This form is usually created after the tax filing deadline to include any contributions made to your HSA up to the tax filing deadline. This form is also submitted to the IRS. You do not need Form 5498-SA to file your income tax return, but you should confirm the contribution amount and keep this form for your records. NOTE: In January HSA Bank issues both the 1099 SA and the 5498 tax statements so as to report distributions and contributions posted to the account in the calendar year. Then, for members that make prior year contribution between January 1 and the tax filing deadline of April 15th, an updated 5498 statement will be issued in May. For more information HSA Tax Information can be found under the Accounts & Balances HSA Tax Information link on your CYC online account portal. 11

12 If I die, does the beneficiary get taxed for the account? A. If beneficiary is employee s spouse, then the spouse becomes the HSA holder and the transfer is not taxable. The spouse may add to the HSA through regular contributions (if spouse is an HSA-eligible individual), rollover contributions into another HSA account or do a direct transfer. B. If the beneficiary is a non-spouse beneficiary, then the HSA ceases to be an HSA and an amount equal to the fair market value of the HSA as of the date of the employee s death is includible in the beneficiary s gross income (or, if the beneficiary is the employee s estate, includible in the employee s gross income for the year in which the death occurred). Retirement & Preparing for Retirement Who administers the HSA when I retire? Would it still be Connect Your Care or would I have to move it someplace else? A. Connect Your Care will continue to administer the account. Hormel Foods will continue to pay the monthly administration fee if you retire. Is Long Term Care an eligible expense to use HSA funds? A. Long Term Care premiums can qualify and be paid with HSA funds. The amount is subject to limits based on age and adjusted annually. You will need to review the instructions for Schedule A (Form 1040) for amounts that can be deducted. If I am age 65 and retired, how can I use the money in the HSA? A. For tax free withdrawals, you can use the HSA on any typical qualified medical expense, incurred before or after retirement. Medicare premiums (other than Medigap coverage) and the employee share of employer-sponsored health care premiums can also be used as eligible expenses in retirement. You can also take penalty free distributions for other purposes but those distributions will be subject to ordinary income taxes. Miscellaneous If we keep our receipts in Connect Your Care electronic filing cabinet (HSA Save-It), what happens if the company changes vendors? Will those receipts go to the new vendor? A. Documentation will be available in your CYC online account, so that you will be able to pull them down from CYC and enter them with the new vendor. Do the unreimbursed medical expenses in Connect Your Care s HSA-Save-It filing cabinet ever expire? A. No, unreimbursed medical expenses do not expire. They may be used at any time in the future. 12

13 Do you have the ability to print a hard copy of the claims transaction record? A. You have the option to sort the transactions filtering by claim type, date of service, claim status and provider and then downloading the claims into a PDF, CSV or Excel format. It can then be printed. 13