Page 6 - Union COBRA Guide
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6
The Accounts
Each health plan option is paired When it comes to paying your medical bills, you decide whether you want
with a special health account to to use your accumulated HSA funds with your Optum Bank debit card—
help you save and pay for eligible or you can simply pay out of your pocket. If you use HSA funds to meet
healthcare expenses. coinsurance and deductible obligations, no taxes will be applied.
HSA Allows You to While many inancial institutions offer HSA accounts, Nortek participants
Save for Your Future in the HSA plan will be invited to open HSA accounts at Optum Bank,
UnitedHealthcare’s HSA bank. By using Optum Bank, you can arrange
An important distinguishing convenient payroll deductions using pre-tax dollars.
difference in the two plans is
the HSA has a portable inancial The Health eSaver is an easy-access account to pay expenses, with
savings account which offers competitive interest rates, modest fees, and the option to invest in mutual
signiicant tax advantages. funds once your balance reaches $2,000. The monthly fee is $3 for
balances less than $5,000.
An HSA account is a personal
bank account you own. You build Optum Bank will issue all Nortek HSA participants MasterCard debit
up your account with voluntary cards to access their account dollars during the plan year.
pre-tax payroll deductions up to
the IRS limits for 2016 ($3,350 Remember: an HSA account is all yours. You keep whatever is in the
for single coverage, $6,750 for account, even if you leave Nortek, and the money rolls over, year after
family coverage) (note that if you year: there is no “use it or lose it” rule.
are over the age of 55 or turn 55
during 2016, the IRS allows you to To learn more about Optum Bank and how HSA accounts earn interest
contribute an additional $1,000— and can be invested, visit www.optumbank.com.
beyond the limits named above—
as a “catch-up” contribution to HRA Accounts More Restricted
your HSA account). Most states The HRA account does not allow for voluntary contributions. However,
also allow HSA contributions to be any accumulated funds in the HRA account carry over year to year, just
free from state tax as well. like the HSA accounts. An HRA account is not portable. If you are in the
HRA and leave the company, any money in your account stays with the
company.
100 Percent Coverage for In-Network Preventive Care in Both Plans
Preventive care and preventive ofice visits are covered in-network at 100 percent in both the HRA and HSA plans with no
charge against your plan deductibles or out-of-pocket max.
Nortek
The Accounts
Each health plan option is paired When it comes to paying your medical bills, you decide whether you want
with a special health account to to use your accumulated HSA funds with your Optum Bank debit card—
help you save and pay for eligible or you can simply pay out of your pocket. If you use HSA funds to meet
healthcare expenses. coinsurance and deductible obligations, no taxes will be applied.
HSA Allows You to While many inancial institutions offer HSA accounts, Nortek participants
Save for Your Future in the HSA plan will be invited to open HSA accounts at Optum Bank,
UnitedHealthcare’s HSA bank. By using Optum Bank, you can arrange
An important distinguishing convenient payroll deductions using pre-tax dollars.
difference in the two plans is
the HSA has a portable inancial The Health eSaver is an easy-access account to pay expenses, with
savings account which offers competitive interest rates, modest fees, and the option to invest in mutual
signiicant tax advantages. funds once your balance reaches $2,000. The monthly fee is $3 for
balances less than $5,000.
An HSA account is a personal
bank account you own. You build Optum Bank will issue all Nortek HSA participants MasterCard debit
up your account with voluntary cards to access their account dollars during the plan year.
pre-tax payroll deductions up to
the IRS limits for 2016 ($3,350 Remember: an HSA account is all yours. You keep whatever is in the
for single coverage, $6,750 for account, even if you leave Nortek, and the money rolls over, year after
family coverage) (note that if you year: there is no “use it or lose it” rule.
are over the age of 55 or turn 55
during 2016, the IRS allows you to To learn more about Optum Bank and how HSA accounts earn interest
contribute an additional $1,000— and can be invested, visit www.optumbank.com.
beyond the limits named above—
as a “catch-up” contribution to HRA Accounts More Restricted
your HSA account). Most states The HRA account does not allow for voluntary contributions. However,
also allow HSA contributions to be any accumulated funds in the HRA account carry over year to year, just
free from state tax as well. like the HSA accounts. An HRA account is not portable. If you are in the
HRA and leave the company, any money in your account stays with the
company.
100 Percent Coverage for In-Network Preventive Care in Both Plans
Preventive care and preventive ofice visits are covered in-network at 100 percent in both the HRA and HSA plans with no
charge against your plan deductibles or out-of-pocket max.
Nortek
