HSA Webinar March 10, 2008: 1 GENERAL INFORMATION 1 Where can I find the summary plan description for the HDHP? The summary plan description (SPD) for the HDHP is located on Your Benefits Resources in the SPD section. Log onto Your Benefits Resources through Employee Self Service or through the internet at www.mydirectory.com/utc. 2 How do I get new, additional or replacement medical ID cards? You may contact Anthem/Lumenos for medical ID cards. Anthem/Lumenos (partners with Mellon Bank): www.lumenos.com User name: utc; Password: utc123 (all lowercase) 1-888-553-8024 3 How can I get information on health care providers in my area? You can get information on health care providers in your area through the Your Benefits Resources web site or through your health plan provider. 4 How can I get answers to my questions about my health care statements? You may contact Anthem/Lumenos for questions about your health care statements. Anthem/Lumenos (partners with Mellon Bank): www.lumenos.com User name: utc; Password: utc123 (all lowercase) 1-888-553-8024 5 How do I get information about what medical or prescription expenses I have incurred and what has been covered? Information concerning what expenses you have incurred and what has been covered is available at your health plan vendor s website. 6 What are the different methods of paying for medical expenses with my HSA? Your Mellon HSA allows you to pay at the point of service, upon receipt of a bill, or reimburse yourself by using a debit card or check. Please also refer to the section on debit cards, checks, and ATMs. 7 Is information for my spouse and children visible to me on-line? Due to HIPAA privacy, information regarding only your minor child(ren) will be visible to you.
HSA Webinar March 10, 2008: 2 8 What financial institution administers the HSA? Each health plan vendor partners with a financial institution that administers the HSA. Although you are not required to use the bank partnering with your health plan vendor, if you do you will be eligible to make deposits through pre-tax payroll deductions. Anthem/Lumenos partners with Mellon Bank. 9 How can I contact Anthem/Lumenos? CIGNA (partners with JPMorgan Chase): www.mycigna.com 1-800-882-7701 Anthem/Lumenos (partners with Mellon Bank): www.lumenos.com User name: utc; Password: utc123 (all lowercase) 1-888-553-8024 UnitedHealthcare (partners with Exante Bank): www.myuhc.com 1-866-675-1599 10 What is the minimum and maximum that I can contribute to my HSA? How can I change my elections during the year? There is no minimum. Although UTC encourages you to contribute to an HSA, you do not have to contribute to an HSA just because you enrolled in the High Deductible Health Plan. For 2008, the maximum allowed is $2,900 for an employee or $5,800 for a family. You can change your contribution by calling the UTC Benefits Center at 1-800-243-8135. 11 What are HSA catch-up contributions? Participants who turn age 55 or older during the plan year may contribute an additional $900 to their Health Savings Account on a tax-free basis. Your can call the Benefits Center to increase your payroll contribution or deposit after-tax dollars directly into the account. You will have to claim the deposit on your individual tax return for tax-favored treatment. ANNUAL DEDUCTIBLE AND OUT OF POCKET (OOP) MAXIMUM 12 How does the family deductible and out-of-pocket maximum work for the High Deductible Health Plan? With the High Deductible Health Plan, your family deductible is $3,000, so your family as a whole must reach this deductible before coinsurance kicks in. After you have reached this deductible, the family out-of-pocket maximum is $3,000. However, a family member only needs to meet a $1,500 out-ofpocket limit before benefits are paid at 100% for that individual. 13 Does my annual deductible count against the out of pocket maximum? No, the out of pocket maximum is the dollars you pay once the plan moves to coinsurance. It does not include monies paid in meeting the deductible.
HSA Webinar March 10, 2008: 3 14 Under the HSA with High Deductible Health Plan, do medical, prescription drug and mental health/substance abuse costs all roll into the same lifetime max? Yes, prescription drugs, mental health and medical all roll into the HSA with High Deductible Health Plan lifetime max. PREVENTIVE CARE 15 Which in-network preventive services are eligible to be covered at 100%? The IRS has defined preventive services for the HSA with High Deductible Health Plan. Eligible services include well-baby exams, well-woman exams, annual physicals and more. Whether a service is considered preventive also depends on how your health care provider codes the service. If you have questions about whether a service is preventive or about how your provider will code the service, please ask your health care provider. 16 What should I do if I already paid for preventive services this year? Or if I believe services I received should have been coded as preventative? Please speak to your health provider and ask them to review, and if necessary recode and rebill the services. ELIGIBLE EXPENSES 17 Where can I find a list of expenses that can be paid for with my HSA? You can find a list of eligible expenses at IRS.gov It is the same list of expenses that can be paid from flexible spending accounts. 18 Can I use the HSA to pay for over-the-counter drugs? Yes. 19 Can I use the Health Savings Account to pay for dental and vision expenses? Yes, dental and vision expenses can be reimbursed from the HSA. The same types of dental and vision expenses that can be reimbursed from the Health Care Spending Account are eligible to be paid with your HSA.
HSA Webinar March 10, 2008: 4 PRESCRIPTIONS 20 How do prescription drugs work with the HSA with High Deductible Health Plan? In the HSA with High Deductible Health Plan, your prescription drugs are covered as part of the medical plan and administered through your health plan, e.g., CIGNA. In other words, prescription drugs will not be administered separately by another vendor, such as Caremark. Prescription drugs are administered in the HDHP just like other health care services, so you must meet your annual deductible of the health plan before the plan starts paying benefits for prescription drugs. Before you meet the deductible, you will pay the full cost for your prescription drugs. After you meet your deductible, you will pay coinsurance for your prescription drugs, until your out-ofpocket maximum is reached. Then the plan will pay 100% of the cost. You will not receive a separate prescription drug ID card. Instead, you should use your medical ID card for the HSA with High Deductible Health Plan when you purchase prescription drugs. Mail-order is also available. 21 Does the HSA with High Deductible Health Plan have a mail-order prescription drug service? Yes, mail-order prescription drugs are available, and you are encouraged to use mail-order service for maintenance medications. For more information, please go to the health plan s Web site. MECHANICS 22 When and how can I elect the amount I want to contribute per pay period to the HSA? When you enrolled in the HSA with High Deductible Health Plan, you were prompted to enter a total amount you d like to deposit to the HSA. The deductions you elected cannot be deposited to the HSA until you set up the HSA bank account with your financial institution. If you would like to change that election please contact the UTC Benefits Center at 1-800-243-8135. 23 Can I deposit money directly into my HSA? Yes, you may deposit money directly into your HSA in addition to making deposits through payroll deductions up to the annual contribution limit (see question 10). However, those funds will be after-tax money and you will have to claim the deposit on your individual tax return for tax-favored treatment.
HSA Webinar March 10, 2008: 5 24 How do I sign up for a Health Savings Account? You may sign up with Mellon Bank or with any financial institution that offers an HSA. If you did not open your account during Annual Enrollment but wish to work with the financial institution that your health plan provider has selected, please contact your health plan provider. 25 Do I have to use Mellon Bank to open my HSA account? No, you may choose any banking institution that provides a Health Savings Account. However, UTC payroll cannot deduct pre-tax earnings from your paycheck for deposit into other financial institutions. If you choose a different bank, you may deposit money directly into your HSA. However, those funds will be after-tax money and you will have to claim the deposit on your individual tax return for tax-favored treatment. 26 Please explain how the Health Savings Account is used to pay for eligible health care expenses. Your Mellon HSA allows you to pay at the point of service, upon receipt of a bill, or reimburse yourself by using a debit card or check. Please also refer to the section on debit cards, checks, and ATMs. 27 Can I use my HSA to reimburse expenses up to my total annual deposit? For example, if I ve elected to deposit $600 for the entire year, can I be reimbursed for $600 of expenses before the year is over? No. For the HSA, you may only be reimbursed up to the amount of money you have in the account at the time. This is different from the way the Health Care Spending Account works. Once a deposit is made to your HSA, you may begin using those funds immediately to pay for eligible health care expenses. 28 Why am I limited in how much I can deposit to my HSA? The IRS regulates how much money you can deposit into your HSA each year. For 2008, you may make pre-tax deposits up to $2,900 per year for single coverage and $5,800 a year for family, or you plus one or more dependents, coverage. 29 Can I pay myself back with money from my HSA for previous medical expenses incurred before the HSA was opened? No. But you can pay yourself back with money from your HSA for medical expenses you incurred after the HSA was open.
HSA Webinar March 10, 2008: 6 30 Do I have to use all of my HSA money by a certain age? No. There is no age limit related to using the money in your HSA. 31 Can I be enrolled in another medical plan while I m covered under the HSA with High Deductible Health Plan? No, you cannot make contributions to the HSA and be covered under any other plan, such as your spouse s plan, coverage through the military or Medicare. 32 If I participate in the HSA with High Deductible Health Plan for one year, and then I switch to another plan or leave UTC, what happens to my HSA money? You keep your HSA money. The HSA is a separate bank account that you can set up with a financial institution. If you stop participating in the HSA with High Deductible Health Plan or leave UTC, the account and any money in it is still yours. You may need to contact your financial institution to find out the terms of using your HSA going forward. 33 If I leave UTC, how do I take my HSA money with me? Do I need to maintain a minimum balance to keep my HSA after I leave? You will need to work with the financial institution that administers your HSA to find out the rules that apply for keeping the account open. You can also roll your HSA over to your new employer's HSA or to one you set up independently. Each financial institution has different requirements when it comes to minimum balances. 34 If I go on COBRA, can I stop participating in the HSA with High Deductible Health Plan? No. But you can opt out of the HSA with High Deductible Health Plan at the next annual enrollment period and choose another UTC option. 35 If I go on COBRA, or take a leave of absence, can I continue to make deposits to my HSA and use my HSA to pay for eligible health care expenses? Yes. You can continue making deposits to your HSA on an after-tax basis, and then deduct your deposits when you prepare your tax return. You can also continue to use your HSA to pay for eligible health care expenses. 36 After I retire, can I still use the money in my HSA? If so, can I use it to pay for retiree medical contributions? Yes, you can continue using your HSA after you retire. You may use it to offset retiree medical expenses, eligible health care expenses and certain other contributions, including insurance premiums (other than premiums for Medicare supplemental policies, such as Medigap) if you re 65 or older. 37 What happens to my HSA money if I die? You designate a beneficiary when you set up your HSA. If your spouse is your designated beneficiary, the HSA will be treated as your spouse s HSA after your death. If your spouse is not the designated beneficiary, the account stops being an HSA, and the fair market value of the HSA becomes taxable to the beneficiary in the year that you die.
HSA Webinar March 10, 2008: 7 38 How long does it take for my money to show up in my HSA? Under the current funding process it takes 5 to 7 business days from the time money is withheld from your pay to be wired to the HSA banks and deposited into individual HSA accounts. The reason it takes this long is because there are three handoffs and reconciliation steps for the funding to occur. UTC holds the contributions until the money transfer can occur. UTC is evaluating means to shorten this process. 39 Do I have to use the funds in the Health Savings Account by a certain time each year? (i.e., does use it or lose it apply? No, you do not have to use the funds in the Health Savings Account by a certain deadline, as you would for the YSA Health Care Spending Account. You can continue to use the money in the HSA for health care expense in future years, even if you leave UTC. METHODS OF REIMBURSEMENT - DEBIT CARDS, ATMS, CHECKS 40 Is a debit card available for the HSA? Can you request more than one card? Yes. Mellon Bank provides one debit card automatically. Additional card requests should be directed to 1-888-553-8024. 41 How do I avoid ATM fees? You can avoid incurring ATM fees by only using your debit card at the point of service or at the issuing financial institutions ATMs. 42 Are checks available? Mellon Bank provides your first checkbook free of charge when you activate your account by sending in a signature card. There is a $10 charge when you reorder checks. INVESTING 43 Can the Health Savings Account be invested? Yes, for Anthem participants that have an HSA with Mellon, you can invest once your HSA reaches $3,000. Initial investments must be made in increments of $1,000 and subsequent investments can be made in increments of $100. 44 What happens to the money in my HSA before I reach the minimum balance needed to invest the funds? Before you reach the minimum balance, your money will accumulate interest in your HSA.
HSA Webinar March 10, 2008: 8 OTHER 45 If I enroll in the HSA with High Deductible Health Plan, will ValueOptions administer mental health/substance abuse benefits? No. Under the HSA with High Deductible Health Plan, mental health/substance abuse benefits are administered through the health plan, e.g., CIGNA, Anthem, etc. 46 Will the Employee Assistance Program (EAP) be affected by the HSA with High Deductible Health Plan? No. The EAP remains a separate program from your medical plan options.