Health Savings Accounts. Human Resources, Benefits

Transcription

1 Health Savings Accounts Human Resources, Benefits

2 What is a Health Savings Account? Savings Account available for GRMC Employees Enrolled in the Choice (CDHP) Health Plan Consumer-driven health care account used to pay for eligible health care expenses. Accounts are federally regulated and used to pay for eligible health care expenses. Contributions are made as tax-free payroll deductions. You own the account (you can take it with you if you leave GRMC) and it will roll over annually.

3 Save it. Use it. Never lose it. With a Health Savings Account (HSA) you save money on a pre-tax basis, can use it to pay for qualified medical expenses and, unlike a Flexible Spending Account (FSA), you never lose the money. Typically, over-the-counter drugs are not eligible expenses under the HSA.

4 What s the Difference? HSA Accounts are federally regulated and used to pay for eligible health care expenses. Contributions are made as tax-free payroll deductions. Health Savings Account Consumer-driven health care account used to pay for eligible health care expenses. You own the account (you can take it with you if you leave GRMC) and it will roll over annually. Available with the Choice Health Plan FSA Accounts are federally regulated and used to pay for eligible health care expenses. Contributions are made as tax-free payroll deductions. Health Care Flexible Spending Account Used to pay for eligible health care expenses not covered by another plan or by dependent care expenses. Use it or lose it rules apply. Available with PPO plan Can be available with Choice plan

5 HSA Eligibility You may be eligible to open an HSA account if you elect the Medical Choice Plan and meet the following requirements: You are covered by a non-hdhp health plan You are not enrolled in Medicare You do not receive military health care benefits You cannot be claimed as a dependent on another person s tax return You cannot be covered by a traditional health care FSA or HRA

6 How You Can Use HSA Dollars Medical plan deductibles and coinsurance Eligible Medical, pharmacy, dental and vision care and services Eligible Medical expenses for your spouse or dependents Health coverage while receiving unemployment benefits Medicare premiums and outof-pocket expenses COBRA continuation coverage and eligible long-term care

7 Qualified Expenses Office Visits Prescriptions Dental Care Eyeglasses Co-payments, coinsurance and deductibles Acupuncture and chiropractic

8 10 Good Things to Know about HSA s 1. It offers the best tax advantages available 2. It is real money that s always yours 3. Use your debit card at the pharmacy 4. Use your debit card for initial payment at the hospital or physician s office 5. Consider saving your HSA dollars for retirement medical expenses

9 10 Good Things to Know about HSA s 6. Spend your HSA dollars on qualified medical expenses 7. Think twice about spending your HSA dollars on non-medical expenses 8. Don t forget the importance of a qualified high deductible health plan 9. Keep in mind special considerations if you decide to enroll in a limitedpurpose flexible spending account (FSA) along with an HSA/qualified high deductible health plan 10. Carefully consider all of your medical purchasing decisions

10 Annual Contribution Rules 2013 $3,250 Individuals $6,450 Families 2014 $3,300 Individuals $6,550 Families

11 Employer Contributions GRMC will contribute $500 at the beginning of the calendar year to your individual Health Savings Account or $875 to your family Health Savings Account to assist you with out of pocket costs. Additionally, you choose your own contribution amount through pre-tax payroll deductions. Also, you can earn up to an additional $500 during the year by completing wellness incentives!

12 Wellness Incentives Screening/Assessment Complete Biometric Screening in Employee Health & Wellness Health Risk Assessment - required Fitness Education Preventive Care Blood Donation

13 Minor Illness/Preventive Care Meet Jennifer GRMC HSA Funding HealthWise Incentives Jennifer s Funding of her Health Savings Account Total HSA funds for 2013 Jennifer s Premium Contributions (Biweekly) $500 $500 $2,250 $3,250 $56.89 Jennifer visited GRMC 5 times in 2013 Type of Visit Provider s Charge Allowed Amount Jennifer s Deductible Jennifer s Coinsurance HSA Funding Preventive Eye Exam $245 $193 $0 $0 $0 Annual Physical $109 $97 $0 $0 $0 Sinus Infection (Office Visit) $135 $110 -$110 $0 $-110 Blood work $75 $63 $-63 $0 $-63 Ear Infection (Office Visit) $135 $110 $-110 $0 $-110 Based on her out of pocket costs, she spent $283 out of her health savings account. She spent $ on her annual health plan premiums, and, she still had $2,967 left over in her account to roll over for out of pocket expenses next year.

14 Major Event Meet Gloria GRMC HSA Funding HealthWise Incentives Gloria s HSA Contributions Total HSA for 2013 Employee Contributions (Biweekly) $875 $500 $5,075 $6,450 $85.33 Unexpectedly, Gloria had a heart attack. Her care is being provided by a GRMC Home Network cardiology group and a GRMC Home Network Cardiac Rehab therapist. Her in-patient care is provided at GRMC. Type of Visit Provider s Charge Allowed Amount Gloria s Deductible Gloria s Coinsurance HSA Funding Ambulance $2,800 $1,200 $-1,200 $0 $-1,200 Emergency Medicine visit resulting in admission $1,000 $875 $-875 $0 $-875 Surgery $5,000 $4,400 $-925 $-695 $-1,620 Inpatient Facility Charge Outpatient Physical Therapy $2,000 $1800 $0 $-360 $-360 $2,500 $2,250 $0 $-450 $-450

15 Well Baby Care Meet Daniel GRMC HSA Funding HealthWise Incentives Daniel s Funding of his Health Savings Account Total HSA Funding for 2013 Daniel s Health Plan Premium Contributions (Biweekly) $875 $500 $5,075 $6,450 $ Daniel takes his infant son to a GHSMC Home Network pediatrician for well-baby care check-ups, immunizations, and minor issues. Daniel also has several diagnostic services performed due to his own personal medical condition. Type of Visit Provider s Charge Allowed Amount Daniel s Deductible Daniel s Coinsurance 1 month well-baby visit $116 $105 $0 $0 $0 2 month well-baby visit $116 $105 $0 $0 $0 3 month well-baby visit $116 $105 $0 $0 $0 Diaper Rash (Office Visit) $168 $135 $-135 $0 $-135 HSA Funding 4 month well-baby visit $116 $105 $0 $0 $0 Diagnostic lab work $125 $105 $-105 $0 -$105 Diagnostic x-ray $195 $175 $-175 $0 -$175

16 Inpatient Stay Meet Mary GRMC HSA Funding HealthWise Incentives Mary s Funding of her HSA Total Funding for 2013 Employee Contributions (Biweekly) $875 $500 $5,075 $6,450 $128 Mary knew in advance that she needed knee surgery during This was one reason she maxed out her annual contribution for the year in her health savings account. Type of Visit Provider s Charge Allowed Amount Mary s Deductible Mary s Coinsurance HSA Funding Specialist consultation (office visit) Preadmission Testing $195 $180 $-180 $0 $-180 $120 $105 $-105 $0 $-105 X-Ray $250 $225 $-225 $0 $-225 Surgery $3,000 $2,500 $-2,490 $2 $-2,492 Inpatient Facility Charge Outpatient Physical Therapy $1,800 $1,650 $0 $-330 $-330 $1,000 $800 $0 $-160 $-160

17 Payment Process Healthcare Provider 1. Present your health care ID card to innetwork provider 2. Claim is processed 2. Claim is processed 5. You pay out-of-pocket or with HSA funds 4. You receive a bill from the provider and reconcile with EOB 3. You receive an EOB statement from your Health Plan Tip: Amount You Owe Provider shown on your bill, should match your Explanation of Benefits (EOB). Establish an HSA file and save all receipts and EOBs.

18 Payment Process Pharmacy Prescription Benefit Provider determines your prescription drug cost at time of service 1. Call or drop off your prescription 2. Submit your Rx card as appropriate 3. Pharmacist submits claim on-line and patient responsibility is identified 5. You pay out-of-pocket or with HSA funds 4. Prescription is filled and payment is requested

19 Who Administers the GRMC HSA? Bank of America Phone: Websites:

20 HSA Dollars can Grow! HSAs can accumulate into BIG bucks! If $1,000 per year is invested at 5% interest

21 Investing Cash Account: Holds your cash deposits used for everyday health care expenses. HSA Investments: Dollar amount invested. Note: Only the funds in your Cash Account are accessible with HSA debit Card $1,000 minimum balance required to be held in your Cash Account.

22 HSA Investment Feature Enabled through Accounts tab via the Online Portal Two components to your account: Cash Account HSA Investments

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24 The HSA for Life The HSA for Life from Bank of America No-fee Visa debit card with a 4-year expiration Online account management Online bill payments Electronic deposits for reimbursements Daily check payments (each business day) FDIC-insured interest-bearing cash account, competitive APY Member experience Easy access to your dollars (direct deposit, Visa payments, bill pay, provider payments) Easy access to information (member portal, mobile applications, Customer Care Associates available) Monthly statements detailing your account activity Integrated investments Easy and convenient access The member selects the funds that make sense No-load mutual funds from a variety of asset classes with ability to customize offering Auto-investment as deposits are received, if applicable

25 Participant Web Portal Provides easy access to account balance and recent activity and investments Online receipt image and statement viewing (fax and scanning capability) Enhanced statement and electronic communication capabilities, including event messaging Simplified online claim submission Interactive videos, tools and calculators Manage your cash account and investment options online free of charge Integrate securely to manage your investment choices and activities on a single platform

26 Mobile Capabilities Information On The Go Mobile capabilities Available as an app for iphone or Droid Balance updates on the go whenever and wherever you need it Convenient access to recent activity such as contributions, withdrawals, online claims, and eservice updates Secure, reliable information as you would expect from the nation s largest bank Similar features with our member portal including Site ID image, recent transactions, and account alerts to provide a consistent account holder experience

27 On-the-go Claim Submission With our enhanced Health Mobile App, you can submit claims, upload claim documentation, and easily manage service providers and claims from your smart phone or other mobile device. It s quick and easy. You can download the Health Mobile App directly from the App Store or Google Play by typing BofA Health. Create A Claim Upload Supporting Receipts Add New Service Provider Edit/Delete Service Provider Manage New Claims Edit Claim

28 Health Savings Account - Statements Statement Detail Method of Delivery HSA Account Statement Summary Report: Beginning Balance Contributions Distributions Ending Balance Annual Percentage Yield (APY) Electronic, but participant can request paper statement through profile feature on member portal Frequency Monthly HSA Investment Statements Summary Report: Beginning Balance Contributions Investment Gain (Loss) Deductions Ending Balance Electronic, but participant can request paper statement through profile feature on member portal Quarterly

29 Health Savings Accounts Tax Forms 1099-SA Tax Form Mailed in January The 1099-SA report shows total eligible distributions from the Health Savings Account for the tax year This report is sent by Bank of America Benefit Solutions and does not need to be filed with taxes 5498-SA Tax Form Mailed in May The 5498-SA Tax Form reports to the IRS the total amount of contributions deposited into your HSA for the prior tax year The IRS allows account holders to contribute to the prior year HSA until the tax deadline The Form 5498-SA is for you to keep as part of your personal tax records Bank of America Benefit Solutions does not provide tax or legal advice. Please consult with your own attorney or tax adviser to understand your particular situation.

30 Educational Information & Web Tools Visit to: Review Claims Transactions Check HSA balances Access a variety of on-line tools, calculators, etc. Order replacement or additional debit cards online View educational videos

31 Customer Care Center Customer Care Center IVR with the following: Balance information Most recent claims Most recent transactions Toll Free Phone Line (866) Hours: 8:00 a.m. to 11:00 p.m. EST Monday Friday