Transcript Enroll 2009 - Georgia Institute of Technology

Georgia Tech HSA and FSA
Adrienne McGeehan
U.S. Bank
June, 2014
What is a Health Savings Account (HSA)?
• An HSA is similar to a 401(k), but for
healthcare.*
• The funds can be used to pay for qualified
medical expenses today or can be saved
for future expenses.
• Earnings are tax-exempt, and qualified
medical expenses can be paid from the
account tax-free.
• Turns into a retirement account at
retirement to use for qualified or nonqualified expenses.**
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* There is a required minimum balance prior to investing within an HSA.
•
** Only subject to income tax on those dollars.
What is a Limited Purpose Flexible Spending
Account (LPFSA)?
• Definition: An account that provides pre-tax reimbursement of
qualifying out-of-pocket expenses related to dental, vision, and
preventive care expenses not covered under the health plan.
• Dental Care Examples: Cleanings, fluoride treatments,
extractions, x-rays, fillings, bridges, orthodontia and more.
• Vision Care Examples: LASIK, eye exams, eye glasses
(contact lenses), solution.
• Preventive Care Examples: Screenings, tests and diagnostic
procedures in conjunction with evaluation, immunizations,
tobacco cessation, preventive medicines such as diabetic
medicine and supplies.
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What is the difference between an HSA & FSA?
Health Savings Account
Flexible Savings Account
Who owns it?
You the employee does.
You the employee does.
Any prerequisites?
Must be paired with a High Deductible Health Plan (HDHP).
No.
How does it work?
Money is payroll deducted and put into a pre-tax account.
Amount is only available as deducted. Reimbursement options
available through healthcare debit card, online reimbursement,
and bill pay. Retain your receipt for your record.
Election amount available at the start of the
plan year (with exception of dependent care
which is available as deducted).
Reimbursement options available through
healthcare debit card, online
reimbursement, and mobile. Receipt may
be required.
Is it portable?
Yes – you can take it with you upon leaving your employer or
retirement.
No.
Does unused
money carry over?
Yes – there’s no use-it-or-lose it penalty.
No – you have to use it by the end of the
year.
What expenses are
eligible?
Refer to the 213(d) expense list for what qualifies.
Refer to the 213(d) expense list for what
qualifies.
What is the big tax
benefit?
Tax-free on money contributed to the account, tax-free
earnings, tax-free withdrawals for qualified medical expenses.
Contributions to FSAs are tax free, reducing
your annual taxable income.
Other
Future thinking account. Investment opportunity and an
additional retirement planning account for medical expenses in
retirement.
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Making Contributions to an HSA
• Contribute on a pre-tax basis
– Contributions through your
employer via payroll deduction
• Contribute on an after-tax basis*
– Use the online contribution tool to
electronically debit your personal
checking or savings account
– Use the online HSA deposit form
and mail with your personal check
2014 Contribution Limits
$1,000
$3,300
Family
$6,550
*Deduct after-tax contributions from taxable income when filing your personal tax return as an above-the-line deduction.
** Catch-Up Contribution: age 55 or older, up to an additional $1,000.
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Single
Catch up**
Using Your HSA Funds
• Payment Card: use it at healthcare locations where
MasterCard is accepted
– Money comes directly out of your account
– No need to pay upfront and wait
for reimbursement
– Cannot be used at ATMs
• Direct Deposit Reimbursement: initiate an online
reimbursement for expenses paid out of pocket
• Bill Pay: issue an online payment to your provider when
you receive the final bill
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FSA Easy Reimbursement Options
• Payment Card: use it
at healthcare locations
where MasterCard is
accepted
• Online: File a claim
online
• U.S. Bank Healthcare
Mobile Application:
File a claim through
mobile app
• Alternate option: Paper
claim
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Qualified Medical Expenses
• IRS Publication 502* contains a list of all approved
qualified medical expenses, including but not limited to:
DOCTOR/HOSPITAL SERVICES
Doctor’s office visits, hospital visits, ambulance services
flu shot/immunization, physical therapy, eye surgery
PHARMACY
Prescriptions, some over-the-counter items
MEDICAL PRODUCTS
Wheelchair/crutches, hearing aids, eyeglasses and contact lenses
SERVICES/TREATMENTS
Drug/alcohol treatment, nursing home/services,
diagnostic services, smoking cessation programs,
psychiatric care, acupuncture, fertility treatment,
chiropractor, dental treatment
*IRS Publication 502 can be found online at www.mycdh.usbank.com under Useful Links & Resources.
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When is a receipt required?
• HSA: Always save receipt for your record. It is not required to
send receipt to U.S. Bank.
• FSA/LPFSA:
–Not requiring receipt:
– IIAS/90% Merchants (Lists on mycdh.usbank.com website).
– Medical FSA: Co-pay’s that match on our system
–Requiring receipt:
– Doctor’s offices
– Dental offices
– Prescriptions that do not match co-pay amount
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Substantiation Options for FSA/LPFSA
• Receipt Reminder Alert: Upon receiving notification by email (if
email available) or by receipt reminder alert upon log-in.
–Day 5/ Day 20/ Day 45 – Day 60, card placed on-hold
• U.S. Bank Healthcare Mobile App
• Log-in under mycdh.usbank.com on and click on alert and
attach receipt.
• Email receipt reminder and documentation
[email protected]
• Fax receipt reminder and documentation to 888-403-5029
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Dependent Care and Orthodontia Automatic
Reimbursement Options
• Automatic Dependent Care Automatic Reimbursement –
–Complete one form to set up payments for the year
–If cost meets/exceeds payroll deduction amount, reimbursement will
be made as payroll deductions occur
• Orthodontia Automatic Reimbursement –
–Complete one form to set up payments through end date of
treatment plan which can be faxed/mailed as indicated on form
–Reimbursement would be either check, or via direct deposit if this is
completed on portal
Managing Your Account(s) Online
• View balance, contribution and
distribution information
• Initiate direct deposit
reimbursements and online
payments
• Access forms, investment
information and other tools
• Designate beneficiaries
• Update dependent information
• Order additional card(s) for
spouse and dependents
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U.S. Bank Healthcare Expense Tracker
• Add a new expense
• Detail expense information (dateof-service, amount, provider, etc.)
• Update existing expense
• Add or view receipt images
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Viewing Your Dashboard Summary
• View dashboard for at-aglance summary
– Total healthcare expenses
– Total paid, unpaid, partially
paid expenses
– Total amount eligible to
submit
– Payment statuses
– Annual rollup of all your
expenses, including other
recipients
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U.S. Bank Healthcare Mobile Application
“I’m on my way to the doctor.
Do I have an adequate balance?”
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“I need to purchase a prescription at my pharmacy.
Will my HSA balance cover the cost?”
HSA Investors: Investment Detail
• Choose from 19 investment options*
• View fund performance, transaction and fund activity detail
* There is a required minimum balance prior to investing within an HSA.
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HSA Investment Options
Value
Blend
Growth
Large Cap
Nuveen Dividend Value
Nuveen Equity Index
Nuveen Large Growth
Mid Cap
John Hancock
Disciplined Value Mid
Nuveen Mid Cap Index
Nuveen Mid Cap Growth
Small Cap
Nuveen Small Cap Value
Nuveen Small Cap Index
Nuveen Small Cap Growth
American Funds EuroPacific
Aberdeen Emerging Markets
Nuveen Strategy
Conservative
Nuveen Strategy
Balanced
Nuveen Strategy Growth
Nuveen Strategy Aggressive
High Grade
Medium Grade
Low Grade
First American Prime
Obligations Money Mkt.
Nuveen Plus Core Bond
Prudential High Yield
International
Allocation/Lifestyle/
Target Date
Fixed
Income/Bonds
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PIMCO Low Duration
Your Responsibilities HSA
• Always save your receipts
– No third party substantiation of how your
money is spent
– IRS may need receipts if you are part of a
general IRS audit
• Tax Reporting
– U.S. Bank will send you IRS Form 1099 only if you distributed
funds out of your HSA in the prior year
– U.S. Bank will provide you IRS Form 5498 online to download if
you contributed funds to your HSA
– Complete form 8889 annually when you do your taxes
• You are solely responsible for how you spend your HSA dollars
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Your Responsibilities FSA
• You are responsible for how you spend your
FSA dollars and providing documentation
• You are notified via email (if email is listed) to
provide documentation/receipt
– Notification is also available on front page once
logged in
• Important: If receipt is not received within 60
days, the card will move to a hold status until
receipt is received.
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Accountholder Support
• HSA Consumer Services Representatives available Monday
through Friday, 7:00 a.m. to 7:00 p.m. (CT): 877-470-1771
• Interactive Voice Response (IVR) available 24/7: 877-470-1771
• Tools and resources available at mycdh.usbank.com
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Thank you
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Important Information
• This Health Savings Account (HSA) is a custody account with U.S. Bank serving as the custodian.
Terms and conditions of the HSA are included in your HSA Application and Agreement. For the U.S.
Bank HSA, your funds maintained in the Cash Account are FDIC insured subject to the FDIC
insurance coverage and insurance limits allowed by law. FDIC insurance is calculated on end-of-day
ledger balances in your deposit account which may include funds deducted from your available
balance for investment purchases that have not yet settled.
• Non-deposit investment products, such as mutual funds, are not deposits or obligations of, or
guaranteed by U.S. Bank or any of its affiliates, nor are they insured by the Federal Deposit Insurance
Company (FDIC), or any other government agency. Past returns of investment products do not
guarantee future results. Mutual fund prospectuses provide detailed information about fund investment
objectives and fees. Read a mutual fund's current prospectus carefully before investing.
• U.S. Bank does not provide legal, tax, or investment advice to HSA accountholders. Contact a
qualified accountant, attorney or investment adviser for tax, legal or investment advice.
© 2014 U.S. Bank National Association. All trademarks are the property of their respective owners.
CPS 3774 R-5/14
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