GET THE MOST FROM YOUR HDHP+HSA MEDICAL PLAN A Consumer Directed Health Plan, or HDHP, combined with a Health Savings Account, or HSA, helps you take charge of your health and financial savings by empowering you as the health care consumer. This guide offers key information and useful tips to help you get the most out of your medical coverage and HSA. The Health Savings Account The plans include two parts that work together to provide your comprehensive coverage: PPO or HMO networks and features Health Savings Account $1,850, $2,850 & $4,500 Deductible Plan with HSA The HSA is All About You You can use the funds in the account to pay for current and future health care expenses. You can make tax-free contributions. Your account may earn interest. You can choose to invest your funds after your account exceeds a balance of $1,000. You are the owner of the account even if you leave Caliber. Understanding Your HSA Below you will find information about how your HSA works with the $1,850, $2,850, and $4,500 deductible plans. CONTRIBUTION METHODS PAYING FOR ELIGIBLE EXPENSES UNUSED MONEY Health Savings Account (HSA) Available only to participants in the $1,850, $2,850, and $4,500 deductible plans. Contribute up to the annual IRS limit of $3,450 for individuals or $6,900 for family coverage; $1,000 additional contribution allowed for Teammates age 55+. Change your contribution amount or stop contributing at any time. Works like a bank account that you manage to pay for your health care expenses. Use a debit card to pay for eligible expenses or submit for reimbursement for payments you ve made (only money you ve already contributed can be spent). Unused money can be carried over each plan year and invested for the future you can even take it with you if you leave your job.
2 Example of How an HSA Works Think of your HDHP plan as a house with four different levels. Preventive care is covered at 100% and works as the foundation and annual deductible, coinsurance, and annual out-of-pocket maximum build on top of it. Take some time to review the chart below. ROOF: ANNUAL OUT-OF-POCKET MAXIMUM* This is the most you pay each year before Caliber pays 100% Employee Only: $6,000* (in-network) includes deductible Family: $6,850* (in-network) includes deductible 2nd FLOOR: COINSURANCE Caliber pays 80% You pay 20% You must meet the deductible before coinsurance begins. If funds are available, you may utilize funding from your HSA to pay your share of the coinsurance amount. 1st FLOOR: ANNUAL DEDUCTIBLE* Employee Only: $1,850 (in-network) Family: $3,700 (in-network) You are responsible for 100% of the deductible. You may use money in your HSA to pay the deductible amount. If the deductible amount exceeds the balance in your HSA, you are responsible for the difference. FOUNDATION: PREVENTIVE CARE (deductible isn t required) START HERE 100% covered by Caliber when you use in-network providers. * Includes coinsurance and deductible amounts. Important HSA Eligibility Information Federal law does not permit you to participate in an HSA if any of the following are true: You are enrolled in Medicare. You are covered by any health insurance (including Tricare) other than a qualified high deductible health plan. You can be claimed as a dependent on another person s tax return. You have access to reimbursement under a Health Care Flexible Spending Account (FSA) established by another employer for you, your spouse, or other family member.
3 1 Make contributions to your HSA As part of your enrollment in the HDHP plan, you can elect to participate in the HSA. Once you have enrolled in the HSA, you must set up an account with Discovery Benefits through the Mercer Marketplace at www.mercermarketplace.com/caliber. Once your account is open, you can choose to make your own tax-advantaged contributions. Be aware that you are opening a bank account and it is subject to the same requirements as any other bank account. Do not miss this opportunity! 2 Manage your account Once you are registered through Discovery Benefits, you can access your account details 24/7 from the website or Mercer Marketplace. Access Mercer Marketplace: a. From Workday, click on the Benefits worklet, then select Mercer Marketplace to be taken directly to your benefits, or b. Directly from the web at www.mercermarketplace.com/caliber Check your balance Review recent account activity File reimbursement claims or pay for eligible health care services Request to receive statements online or in the mail your choice 3 Get the full list of eligible expenses When you need health care services, it is important to consider whether the expenses will be eligible under the IRS s HSA rules. Here are a few examples of eligible expenses. MEDICAL EXPENSES DENTAL EXPENSES VISION EXPENSES Deductible Out-of-pocket costs, including copays and coinsurance Office visits Prescriptions drugs Procedures, lab work, exams, X-rays, and expenses due to hospitalization Smoking cessation programs or products Chiropractic care, acupuncture, and physical therapy Bandages, crutches, and other over-thecounter items (as long as you have a prescription from your doctor) Deductible Copays and coinsurance for dental care Orthodontia Exam copays Eyeglasses, including frames Contact lenses For a full list of eligible expenses, review the IRS publication 502, which is available online at www.irs.gov.
4 4 Maximize your tax savings Take advantage of your HSA s tax savings features. Save when you contribute You do not pay federal income tax on the HSA dollars you contribute through payroll contributions. Save as you build your balance As your HSA funds grow, the interest and investment earnings are free from federal taxes. When your account balance reaches $1,000, you can choose to invest your funds. Go to www.discoverybenefits.com to learn about your investment options. Save when you pay As long as you use your HSA to pay for eligible health care expenses, you do not pay taxes on withdrawals from your account. 5 Using your HSA effectively Build your balance early. With an HSA, you can change your contribution amount at any time (unlike the FSA). Consider contributing a larger amount out of your first few paychecks of the year to quickly build a balance for immediate or unforeseen expenses. You may choose to reduce your contribution amount for the remainder of the year. Keep receipts. Unlike an FSA, which requires you to provide proof of eligible expenses before you can receive reimbursement, with an HSA, you do not have to submit any receipts. Even though receipts aren t required, it is a good idea to keep them as a record of your eligible expenses. Make post-tax contributions. The IRS limit for before-tax contributions is $3,450 for individual coverage and $6,900 for family coverage, but there is no limit on post-tax contributions. You can deposit money directly to your Discovery Benefits account. Even though the contributions are taxed, post-tax contributions still give you an opportunity to increase your HSA balance and experience tax-free growth. That is because earnings on interest and investment funds grow tax-free in the HSA.
5 6 Stay healthy with preventive care Make the most of your health care dollars by taking advantage of your preventive care benefits. The HDHP plan pays 100% for the following covered services. CHILDREN WOMEN MEN Well baby care Pap tests Mammograms Osteoporosis test Diabetes mellitus: baseline for high-risk individuals Colonoscopy Colonoscopy Prostate cancer screening Diabetes mellitus: baseline for high-risk individuals Osteoporosis test