Frequently Asked Questions Health Savings Accounts (HSA) Q: What is a health savings account (HSA)? A: An HSA works very much like a savings account. You can contribute pre-tax dollars and let it grow from year to year. The funds are federal tax-free* and can be used to pay for your deductible or qualified medical expenses (even those not covered by the plan). To view an up-to-date list of HSA qualified medical expenses, download or order IRS Publication 502 by calling the IRS at 1-800-TAX-FORM (1-800-829-3676) or by visiting www.irs.gov. Below are a few highlights of the HSA. For more information, go to healthequity.com. If you change jobs, retire, or leave the health plan, you take the money with you wherever you go it s yours to keep. Your money earns interest and you don t pay federal taxes on withdrawals for qualified medical expenses. Once your HSA balance accrues more than $2,000, you can invest any amount in excess of the $2,000 into a mutual fund. Even though you do not need your receipts to get reimbursement from the HSA, keep your receipts in case of an IRS audit. All contributions, earnings, and withdrawals for eligible healthcare expenses are federal tax-free. Some states, including California, New Jersey, and Alabama, apply state income taxes to the HSA contributions and earnings. See the table below for contribution amounts from SRI International along with the individual and family coverage contributions. * Currently, for residents of California, Alabama, and New Jersey, HSA contributions and earnings are not excluded from state income tax. For more information, please consult your tax adviser Q: How much money does SRI International contribute to the HSA? A: For the 2018, SRI International will contribute the following amounts based on a plan coverage effective date of January 1, 2018. If you enroll in the plan in after January 1, 2018, SRI International contributions will be prorated. Single Coverage: Up to $1,300 Family Coverage: Up to $2,600 HSA FAQ Page 1 of 6 Page 1 of 6
Q: What can I use my HSA for? A: Your HSA can be used to pay for your deductible or qualified medical expenses (even those not covered by the plan). To view an up-to-date list of HSA qualified medical expenses, download or order IRS Publication 502 by calling the IRS at 1-800- TAX-FORM (1-800-829-3676) or by visiting www.irs.gov. Q: How do I use my HSA to pay for medical expenses? You receive services from a healthcare provider Your provider bills Blue Shield You receive an EOB from Blue Shield Your provider sends you an invoice You pay your invoice with your HSA Use your HSA debit card or Pay provider directly through healthequity.com or Use another method of payment and reimburse yourself through healthequity.com Q: How do I use my HSA to pay for prescription drugs or pharmacy services? You fill your prescription Pharmacy verifies your pharmacy coverage and provides a cost for your prescription(s). You pay for prescription using your HSA Use your HSA debit card or Use another method of payment and reimburse yourself through healthequity.com Q: What if a provider asks me to pay up-front for services? A: You can let your provider know that you have an HSA that covers part of your deductible. If you would like to provide them with your HSA available funds balance, HSA FAQ Page 2 of 6 Page 2 of 6
you can access this information by logging on to blueshieldca.com and select HSA from the member dashboard. You can also call HealthEquity at (877) 857-6810. If you are required to pay a provider directly for services, then you will need to submit a claim for reimbursement. Simply log in to blueshieldca.com, select HSA from the member dashboard. Then, follow the instructions to submit your receipt. If you need assistance, contact HealthEquity at (877) 857-6810. Q: What happens if you don t have a sufficient balance in your HSA to cover your prescription drug purchases or medical expenses? A: You should always check your HSA balance before using your HealthEquity Visa debit card to pay for a medical/pharmacy service or prescription drug. If you do not have enough money in your HSA to cover the cost, your HealthEquity Visa debit card will be denied. Some providers may be able to accept two forms of payment and others may not. Q: How can I estimate my medical costs before I visit the doctor? A: If you are a Blue Shield Member, you can use Blue Shield s Treatment Cost Estimator tool provides HSA members with estimates of both the total cost and out-of-pocket expenses for common network medical treatments and services. These estimates provide the transparency and clarity to help you manage and plan for future healthcare expenses. To access this tool, log in to blueshieldca.com, then click on Treatment Cost Estimator on the Popular Tasks section. If you are not currently a member, then you can estimate your medical costs through FairHealthConsumer.org, a third-party website that is not affiliated with Blue Shield. Important: FairHealthConsumer.org does indicate whether providers are part of the Blue Shield network and the estimated costs do not reflect Blue Shield negotiated network discounts. Actual costs for services may vary depending on the plan you enroll in and the providers you access for services. FAIR Health s agreements with third parties place limits on the number of medical and dental searches that can be done on the site. Consumers can conduct 15 searches of up to five medical codes per week and 10 searches of up to five dental codes per week. Learn more at fairhealthconsumer.org/faq. Q: 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-pays, and deductibles? A: 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 HSA FAQ Page 3 of 6 Page 3 of 6
dependent isn t covered under your plan, his/her expenses won t be applied toward your deductible. Q: My domestic partner is covered on my insurance plan. Can I use my HSA for my domestic partner s medical expenses? A: If your domestic partner meets the IRS qualifications of a tax dependent, you can legally use your HSA funds for his/her medical expenses. Q: Do I pay for the costs of services upfront at the doctor s office? A: Possibly this depends on whether or not you are receiving care from a network on non-network provider. When you see a network provider: In most cases, your providers will submit your claim to Blue Shield and you will not need to pay upfront at the time of service. When you see a non-network provider: Non-network providers will usually require you to pay 100% of the cost of the service. You will then need to submit a claim a long with the itemized bill from your provider to Blue Shield. Q: I m retired. Can I still contribute to my HSA? A: Yes, provided you re covered by a qualified High Deductible Health Plan (HDHP), such as the [name of plan] and are not enrolled in/covered by Medicare. Q: If my spouse is on Medicare, can I contribute to an HSA? A: Yes. As long as you re not enrolled in Medicare yourself and are still enrolled in a qualified HSA, such as the [name of plan], you can contribute to your HSA. Q: Can I use the money in my HSA for non-medical expenses? A: Yes. If you do, and you 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 nonmedical expenses, but won t pay a penalty. Q: Can I use my HSA for eye glasses, contacts, or Lasik surgery? A: Yes. These expenses may not apply to your medical plan s deductible though. HSA FAQ Page 4 of 6 Page 4 of 6
Q: Can I use my HSA to pay for dental expenses and orthodontics? A: Yes. These expenses may not apply to your medical plan s deductible though. Q: Can I use my HSA to pay for voluntary cosmetic surgery? A: The HSA can be used for cosmetic surgery only if prescribed by a physician as being medically necessary. Q: Can I access my HSA online? A: 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. You can access this information two ways: 1) Log on to blueshieldca.com and select HSA 2) Simply visit healthequity.com. Q: Can I view and manage my HSA online? A: Yes, you can view and manage your HSA online. First, you will need to register at myhealthequity.com. After you have registered, you have the option of accessing your HSA through myhealthequity.com or through the Blue Shield website at blueshieldca.com. To access your HSA through the Blue Shield website, go to blueshieldca.com, log in and select HSA from the member dashboard. Once you log in you will have 24/7 access to your account balance, claim detail, transaction information, as well as many other helpful resources to manage your HSA. Q: How do I check my HSA available funds balance? A: You can check your HSA available balance by logging on to blueshieldca.com, select HSA from the member dashboard. You can also call HealthEquity at (877) 857-6810. Q: Where can I learn more about the HSA? A: Visit healtheuqity.com for access to a wide range of helpful resources to help you learn more about the HSA. Here you will find videos and educational documents as well as tools and forms to help you manage your HSA. HSA FAQ Page 5 of 6 Page 5 of 6
We re here to help If you are not able to find the answer to your question below, please feel free to contact one of the following: Blue Shield of California Member Services For questions about your Savings Plus PPO plan (888) 638-1596, from 7 a.m. to 7 p.m., Monday through Friday HealthEquity Call any time, any day to check your HSA balance or to get assistance submitting a claim for reimbursement. (877) 857-6810 HSA FAQ Page 6 of 6 Page 6 of 6