Page 8 - Open Enrollment Guide Sample
P. 8
8
Why Do We Have an HSA? Healthcare Bank Account
HSAs encourage individuals to become
more active in making healthcare
decisions. The actual cost of services What is a Healthcare Bank Account?
under an HSA has more impact on you When a team member participates in an HSA (and is not covered by
than under traditional plans. Under another medical plan), team members are eligible to set up a healthcare
traditional plans, you often just pay a
lat dollar copay and may not realize bank account. Team members can pay for qualiied medical expenses
the actual costs of your doctor’s visits using pre-tax dollars set aside in the healthcare bank account. Team
and prescriptions. An HSA puts you members can make contributions to the account up to the allowed
in the driver seat and in direct control maximum contribution limits. The IRS contribution limits for 2015 are
of how much you spend on your $3,350 for individuals and $6,650 for families. Individuals age 55 and
healthcare costs.
older may contribute an additional $1,000 to the healthcare bank account
under the “catch-up” provision. These funds can be withdrawn at any
time to cover qualiied medical expenses as deined by the IRS, such
as deductibles, medical services, pharmacy charges or post retirement
medical expenses.
Unlike a traditional Flexible Spending Account (FSA), there is no use-
it-or-lose-it rule with a healthcare bank account. Contributions made
to the account will automatically roll over year after year. There are no
vesting requirements or forfeiture provisions. The banking institution
sets an investment threshold on the healthcare bank account. Once
this investment threshold is reached, the money in the account may be
invested in one of the institution’s investment options, typically mutual
funds. Earnings on these investments help the account to grow over time
and may be used to help pay for post-retirement medical expenses, such
as COBRA premiums or long-term-care insurance.
When you participate in a healthcare bank account, you will not be eligible
for the traditional lexible spending healthcare reimbursement account;
however, you will still be eligible for the lexible spending dependent care
reimbursement account.
[Client]
Why Do We Have an HSA? Healthcare Bank Account
HSAs encourage individuals to become
more active in making healthcare
decisions. The actual cost of services What is a Healthcare Bank Account?
under an HSA has more impact on you When a team member participates in an HSA (and is not covered by
than under traditional plans. Under another medical plan), team members are eligible to set up a healthcare
traditional plans, you often just pay a
lat dollar copay and may not realize bank account. Team members can pay for qualiied medical expenses
the actual costs of your doctor’s visits using pre-tax dollars set aside in the healthcare bank account. Team
and prescriptions. An HSA puts you members can make contributions to the account up to the allowed
in the driver seat and in direct control maximum contribution limits. The IRS contribution limits for 2015 are
of how much you spend on your $3,350 for individuals and $6,650 for families. Individuals age 55 and
healthcare costs.
older may contribute an additional $1,000 to the healthcare bank account
under the “catch-up” provision. These funds can be withdrawn at any
time to cover qualiied medical expenses as deined by the IRS, such
as deductibles, medical services, pharmacy charges or post retirement
medical expenses.
Unlike a traditional Flexible Spending Account (FSA), there is no use-
it-or-lose-it rule with a healthcare bank account. Contributions made
to the account will automatically roll over year after year. There are no
vesting requirements or forfeiture provisions. The banking institution
sets an investment threshold on the healthcare bank account. Once
this investment threshold is reached, the money in the account may be
invested in one of the institution’s investment options, typically mutual
funds. Earnings on these investments help the account to grow over time
and may be used to help pay for post-retirement medical expenses, such
as COBRA premiums or long-term-care insurance.
When you participate in a healthcare bank account, you will not be eligible
for the traditional lexible spending healthcare reimbursement account;
however, you will still be eligible for the lexible spending dependent care
reimbursement account.
[Client]
