Page 9 - 2015/2016 Benefits Guide
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How the HSA Works
A Health Savings Account is a personal bank account you own which is Remember
used to pay for qualiied medical expenses. You build up your account You must remain enrolled in the
with voluntary pre-tax payroll deductions up to the IRS limits. The IRS HSA plan for 12 months from
contribution limits for 2015 are $3,350 for individuals and $6,650 for your initial enrollment or your
families. Note if you are over the age of 55 or turn 55 during 2015, the HSA contributions will be subject
IRS allows you to contribute an additional $1,000—beyond limits named to tax implications. You will have
above—as a “catch-up” contribution. the opportunity to change during
If enrolling mid-year (outside of annual enrollment), your annual the annual enrollment period
contribution will be prorated. You are eligible to contribute 1/12th of the following 12 months of coverage.
annual HSA contribution amount for each eligible month. To contribute For more information, please
the maximum allowable, you must be enrolled for a full year (January– see IRS Publication 969, consult
December) or if enrolled by December 1 of the tax year and also remain a tax advisor, or both. You are
on the plan through December 31 of the following year. Most states also responsible for monitoring and
allow HSA contributions to be free from state tax as well.
adjusting your contributions
Note: The money you accumulate is yours; “use it or lose it” rules do not apply. throughout the year to ensure
compliance with federal laws and
When it comes to paying your medical bills, you decide whether you limitations that apply to HSAs.
want to use your accumulated HSA funds—or you can simply pay out of
your pocket. If you use HSA funds to meet coinsurance and deductible
obligations, no taxes will be applied.
While many inancial institutions offer HSA accounts, TheBANK
participants in the HSA plan will be invited to open HSA accounts at
Optum Bank, UMR’s HSA bank. By using Optum Bank, you can arrange
convenient payroll deductions using pre-tax dollars. Optum Bank will
issue all HSA participants MasterCard debit cards to access their account
dollars during the plan year.
The default account type is the Health eSaver; however, an employee has
the choice to change it to another account type at any time. The Health
eSaver is an easy-access account to pay expenses, with competitive interest
rates, modest fees, and the option to invest in mutual funds once your
balance reaches $2,000. The monthly fee is $3 for balances less than
$5,000.
Benefits Guide
How the HSA Works
A Health Savings Account is a personal bank account you own which is Remember
used to pay for qualiied medical expenses. You build up your account You must remain enrolled in the
with voluntary pre-tax payroll deductions up to the IRS limits. The IRS HSA plan for 12 months from
contribution limits for 2015 are $3,350 for individuals and $6,650 for your initial enrollment or your
families. Note if you are over the age of 55 or turn 55 during 2015, the HSA contributions will be subject
IRS allows you to contribute an additional $1,000—beyond limits named to tax implications. You will have
above—as a “catch-up” contribution. the opportunity to change during
If enrolling mid-year (outside of annual enrollment), your annual the annual enrollment period
contribution will be prorated. You are eligible to contribute 1/12th of the following 12 months of coverage.
annual HSA contribution amount for each eligible month. To contribute For more information, please
the maximum allowable, you must be enrolled for a full year (January– see IRS Publication 969, consult
December) or if enrolled by December 1 of the tax year and also remain a tax advisor, or both. You are
on the plan through December 31 of the following year. Most states also responsible for monitoring and
allow HSA contributions to be free from state tax as well.
adjusting your contributions
Note: The money you accumulate is yours; “use it or lose it” rules do not apply. throughout the year to ensure
compliance with federal laws and
When it comes to paying your medical bills, you decide whether you limitations that apply to HSAs.
want to use your accumulated HSA funds—or you can simply pay out of
your pocket. If you use HSA funds to meet coinsurance and deductible
obligations, no taxes will be applied.
While many inancial institutions offer HSA accounts, TheBANK
participants in the HSA plan will be invited to open HSA accounts at
Optum Bank, UMR’s HSA bank. By using Optum Bank, you can arrange
convenient payroll deductions using pre-tax dollars. Optum Bank will
issue all HSA participants MasterCard debit cards to access their account
dollars during the plan year.
The default account type is the Health eSaver; however, an employee has
the choice to change it to another account type at any time. The Health
eSaver is an easy-access account to pay expenses, with competitive interest
rates, modest fees, and the option to invest in mutual funds once your
balance reaches $2,000. The monthly fee is $3 for balances less than
$5,000.
Benefits Guide
