© ConnectYourCare. All Rights Reserved. Health Savings Account (HSA) Information.

© ConnectYourCare. All Rights Reserved.

Health Savings Account (HSA) Information

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Who We Are

• ConnectYourCare is your health care account administrator, offering the most advanced and user-friendly account solution.

– Online and mobile account access

– Health education tools– Payment card– Easy access to funds


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What is an HSA?

A HSA is like a 401(k) for health care. HSAs are tax-advantaged accounts that accumulate interest and can earn investment returns. The funds can be used to pay for qualified medical expenses today or can be saved for future expenses.

•Account Advantages– Triple tax savings– Interest and investments– Multiple uses– Easy to access – Portable – it stays with you when

you leave your company or retire


Unlike traditional insurance where you only benefit if you use it, with an HSA, you can spend your HSA on today’s

expenses, or save and invest your HSA funds for future

expenses or for retirement!

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Why Enroll? Savings Savings Savings!


Annual Pay $35,000 $35,000

Pre-tax HSA Contribution -$1,500 -$0

Taxable Income =$33,500 =$35,000

Federal income and Social Security Taxes

-$7,362 -$7,852

Afer-tax dollars spent on eligible expenses

-$0 -$1,500

Spendable income =$26,138 =$25,648

Melissa’s Tax Savings

$490 $0

With HSA No HSA

How it works: Assume “Melissa” earns $35,000 a year and has $1,500 in eligible expenses.

*Sample tax savings for a single taxpayer with no dependents; actual savings will vary based on your individual tax situation. Consult a tax professional for more information.

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Savings Add Up Over Time

• Let’s say you contribute $3,000 a year to your HSA each year until retirement. Assuming you use $1,500 a year for medical expenses, earn 8% a year in interest and investments, and reinvest all earnings, your savings can really add up.*

*ConnectYourCare calculator: HSA Triple Tax Savings Calculator for Individuals and Employees


Starting Age HSA Value at age 65

25 $651,000

35 $271,000

45 $103,000

55 $31,000

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HSA Interest and Investment Options

• Interest-Bearing Savings Account– Interest paid on balances of $1.00 or more.– Interest is calculated daily; paid monthly based on average HSA balance.– Interest is paid on first balances in the account.– FDIC-insured

• Investment Options to Grow HSA Funds– Find ways to invest your HSA funds through your online account


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Contribution Limits

• Maximum Annual Contributions for 2014– Individual: $3,300– Family: $6,550

• Maximum Annual Contributions for 2015– Individual: $3,350– Family: $6,650

• For individuals age 55 and older, additional “catch-up” contributions allowed– $1,000 – 2014 and 2015


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HSA Distributions

• Distributions allowed at any time without restriction• Distribution is tax-free if taken for “qualified medical

expenses” incurred by one of the following after HSA was established:– The account holder– Spouse of the account holder– Any dependent of the account holder

• even if not covered by the HDHP

• Qualified medical expense must be incurred on or after the HSA was established– If HDHP coverage effective on first day of month, HSA can be established

as early as first day of same month– If HDHP coverage effective any day other than first day of month, HSA

cannot be established until first day of following month


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HSA Funds Never Expire!

• Your HSA is yours forever! – If you have unused funds at the end of the plan year, they will

automatically roll over to the next year and will still be accessible

(Note: Funds that roll over from the previous year are not considered as part of your contribution limits)

• Your HSA is portable too!– Your HSA will follow you for life,

even if you get a new employer

or retire


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Who is Eligible for an HSA?

• Any individual or employee can open and make contributions to an HSA, if they meet all of the following requirements:– Covered by a qualified HDHP – Not covered by other health insurance– Not enrolled in Medicare– Can’t be claimed as a dependent on

someone else’s tax return• Children cannot establish their own HSAs

• Spouses can establish their own HSAs, if eligible

• No income limits on who may contribute to an HSA• No requirement of having earned income or being

employed


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Coordination Between Spouses

• HSAs are individual accounts only• In general:

– If both spouses meet the HSA eligibility requirements, both may open an individual HSA (optional).

– If both spouses have self-only HDHP coverage, they can each establish an HSA and contribute up to the individual limit (2015: $3,350).

– If one or both spouses has family HDHP coverage, they can each open an HSA but can only contribute up to the family maximum ($6,650), plus any applicable catch up contribution ($1,000 to each eligible HSA).

– A handout showing the various coverage scenarios is available.

• Qualified medical expenses of a spouse can be paid from your HSA, regardless of whether the spouse is HSA eligible themselves.

• If your spouse is the designated beneficiary, your HSA is treated as your spouse’s HSA after your death.


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Covering Children

• HDHP’s allow coverage for children up to age 26.• If your child can be claimed as a dependent on anyone’s tax

return s/he is not eligible to open or contribute to an HSA.• If your child is eligible to have been claimed as a dependent on

your tax return, you may cover their qualified medical expenses from your HSA.

• Your child is eligible to open an HSA if s/he has no other health coverage except for qualified HDHPs (with the exceptions previously noted) AND is not ELIGIBLE to be claimed as a dependent on anyone else’s tax return.– For example, if you have a family HDHP, your child could open their own HSA

if they have no other health insurance coverage and are no longer qualified to be a dependent on your (or anyone else’s) tax return.

– This child would be able to contribute up to the family maximum, or $6,550 during 2014.


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Examples of Qualified Medical Expenses


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Examples of Qualified OTC Expenses

Some over-the-counter items are eligible for purchase with HSA funds.


Eligible without a Prescription:•Bandages•Braces & supports•Catheters•Contact lens supplies & solutions•Denture adhesives•Diagnostic tests & monitors•Family planning items•First aid supplies•Insulin & diabetic supplies•Ostomy products•Reading glasses•Wheelchairs, walkers, canes

Eligible with a Prescription*:•Allergy & sinus medicine•Antibiotics•Cold sore remedies•Cough, cold & flu•Feminine anti-fungal/anti-itch•Hemorrhoidal preps•Laxatives•Motion sickness•Pain relievers•Respiratory treatments•Sleep aids & sedatives•Stomach remedies

Dual Purpose Items:These items can be used for a medical purpose or for general health and well being and are eligible only with a prescription, doctor’s directive or letter of medical necessity:•Dietary and weight loss supplements•Fiber supplements•Orthopedic shoes & inserts•Snoring cessation aids•Vitamins & herbal supplements

* A “prescription” means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.

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Examples of Not Qualified Expenses


Easy Access to Your Account

© 2014 ConnectYourCare. All Rights Reserved.

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Online Participant Portal

• 24 x 7 real-time access to:– Obtain real-time account

balances– Check transaction history on

accounts – contributions and disbursements

– Submit online request for reimbursement, check claim status, and view reimbursement schedule

– Add/update personal and direct deposit information

– Access a variety of health education and wellness tools


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Health Education Tools• WebMD Hospital AdvisorSM— Hospital information

and rankings for specific procedures

• WebMD Medication AdvisorSM— Information on less

expensive prescription options

• WebMD Treatment Cost AdvisorSM— Cost estimates

on 350 of the most common medical conditions, tests,

and procedures

• WebMD Health TopicsSM— A to Z medical

encyclopedia listing of over 1,500 ailments with

information, treatment options, prevention, and more

• WebMD HealthQuotientSM— State-of-the-art

assessment tool that scores participants’ health status,

calculates risk levels, and provides recommendations

for health improvement and behavior change

• Symptom Checker — Information about what medical

symptoms could indicate and helpful facts before a

doctor’s visit


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Mobile Solutions• Mobile App

– Available for Android, iOS and Windows devices

– View account balance, alerts and transaction history

– Submit a new claim

– Make payments with Online Bill Pay and Click-to-Pay

– Tap to call Customer Service

– Upload claim documentation with your device’s camera

• Mobile Browser– Streamlined version of online account viewable from any

mobile device

– Access many of the Mobile App’s features without having to download it

• Mobile Alerts and Two-Way Texting– Request and receive account information and alerts via text

message

– Sign up for this feature through your online account


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Accessing Account Funds

Payment Card for HSA• Use it at locations where Visa is

accepted

• Use it for qualified health care expenses

• Automatically records purchase online

• Money comes directly out of your account

• No need to pay upfront and wait for reimbursement

• Cannot be used at ATMs

• Multiple ConnectYourCare accounts are accessible with the same card (if offered by your employer)


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Reimbursement RequestsPay with personal funds and request reimbursement any HSA purchases made without your card.

•Pay for a qualified expense using personal funds •Enter your claim online or using the mobile app


• Upload documentation online or with mobile app

• Receive reimbursement via check or direct deposit

Tip: Set up direct deposit for faster reimbursements!

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HSA Save-It! Works for Everyone

Everyone has different needs, but HSA Save-It! can help.

Whether you use your HSA for health expenses today, as a tool for long-term savings, or a combination of both, HSA Save-It! is the quick and simple solution.


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HSA Save-It Makes it Easy

• Whether you cash out your HSA savings in 2 days or 20 years, making a withdrawal is fast and easy with HSA Save-It!


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HSA On Demand® Has You Covered

• Unexpected medical expense? Not enough saved? No problem.

• Funds are there when you need them

• HSA On Demand automatically advances up to a year’s worth of contributions if needed

• Not a loan or line of credit but an advance on your future contributions

• Just continue contributing to your HSA each paycheck, as usual, until you repay the advance


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Customer Service Always Available

• Live Customer Assistance

– Available 24/7, 365 days a year

– Detailed questions or personal assistance

– Trained in adjudication and call assistance

• Interactive Voice Response

– Account information

– User name reminder or password reset

• Online Portal, Mobile App, Mobile

Browser and Mobile Alerts

– Real-time account balances and transaction

information


Best-in-class service to participant through multiple channels

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Frequently Asked Questions

How much can I contribute to my HSA?– For 2014, you can contribute up to $3,300 for individual coverage

and $6,550 for family coverage. For 2015, you can contribute up to $3,350 for individual coverage and $6,650 for family coverage.

– Individuals ages 55 or older can make additional "catch-up" contributions of up to $1,000 per person in 2014 and 2015.

How will I be able to access my account funds? You will receive a healthcare payment card to access your HSA

funds. You can also pay for eligible expenses with any other form of payment and request reimbursement from your account.

When can I request reimbursement from my account?You have access to the account when your plan becomes effective.


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