Page 8 - 2017 Employee Benefit Highlights

Contributing to your future health care needs
Health Savings Accounts

Important notes about the Anthem Blue
HSA HealthEquity| healthequity.com Cross HDHPs:
Because HSAs are tax-advantaged, the
In order to contribute to a Health Savings Account, you MUST be government has established specific rules about
enrolled in a Anthem Blue Cross High Deductible Health Plan (HDHP). participating in and funding an HSA. A listing of
some of the important HSA rules follow below:
Health Savings Accounts (HSA) were created by the government to give people a 1) You will be required to accept the terms and
new way to pay for their health care expenses and save for future needs. HSAs are conditions during the enrollment process, this
considered tax-advantaged because you do not pay taxes on the contributions to includes compliance with the USA Patriot Act.
your account, nor do you pay taxes on your account earnings or withdrawals, as If you do not open your HSA account within 90
long as your withdrawals are for eligible health care spending. Your HSA balance can days, or are otherwise ineligible, the employer
accumulate from year to year—there is no “use it or lose it” rule for your HSA funds. contribution will be forfeited.

What’s in it for me? 2) You cannot have an HSA with any other
• Epicor will contribute up to $500 per year for an eligible employee with medical coverage, other than the HDHPs
single coverage or up to $1,000 per year for an employee with enrolled offered by Epicor. If you enroll in the Anthem
dependents. Employees will receive 25% of the annual Epicor contribution Blue Cross PPO or the Kaiser HMO plan you will
per quarter. Employees must be actively employed on the first day of the not be eligible to establish an HSA. Additionally,
quarter to be eligible. See additional eligibility requirements in the Important those employees who have coverage (that is
notes section. anything other than an HSA compatible plan)
• Use your HSA to pay your Anthem Blue Cross HDHP deductible or to pay for through their spouse or are enrolled in Medicare
will not be eligible to establish an HSA.
other eligible health care expenses
• Save your HSA dollars to help pay for future medical expenses, COBRA 3) The HDHPs have an aggregate family
premiums or long-term care insurance premiums deductible and family out-of-pocket maximum.
• Grow your HSA by earning tax-free interest accrued on your HSA deposits This means if you cover your dependents, you and
your family must pay the total family deductible
The basics of Health Savings Accounts: before the plan begins to share costs with you.
• You can contribute pre-tax dollars, up to $3,400 for individuals or $6,750 for You must also meet the total family out-of-
families pocket maximum before the plan pays 100% of
• Once you turn 55 years old, you can contribute an additional $1,000 per year the usual, customary and reasonable charges for
as a “catch-up” contribution covered services.
• Your HSA deposits will earn interest, just like regular savings accounts 4) You cannot participate in a Health Care
• Your contributions are tax-free, and the earnings in your account grow tax- Flexible Spending Account (FSA) if you have an
free. Withdrawals are tax-free, as long as they are used to pay for eligible HSA. IRS rules will not allow employees to be
health care expenses enrolled in both an HSA and a full, comprehensive
• Epicor’s HSA is provided by HealthEquity: health care FSA. If you enroll in a Anthem Blue
– A wide range of investment options are available with no plan fees Cross High Deductible plan, you may still
– An award-winning member website portal participate in the Dependent Care FSA. You may
– http://healthequity.com/ed/hsalearn/ (education videos, collateral, tutorials, enroll in a Limited Purpose Flexible Spending
calculators, etc.) Account for dental and vision only. Refer to page
– http://healthequity.com/advisor (investments and tools) 11 for details.

How do I sign up? 5) In a limited number of states, state income
When you enroll in a Anthem Blue Cross HDHP, you can make contributions to your taxes will apply to your HSA contributions.
HSA through regular payroll deductions, or in a lump sum amount at any time Although your HSA contributions will not be
throughout the year. During the plan year you can withdraw money from your HSA subject to federal income taxes, in a few states
to reimburse your eligible medical expenses (including expenses that count toward (including California) you will still be responsible
your deductible). Or, you can pay your medical expenses out-of-pocket until you for state income taxes on the money deposited
reach your deductible, and let your HSA grow and earn interest for future eligible into your HSA.
expenses. At the end of the year, money left in your HSA rolls over to the next year. 7