1. Health Savings Accounts (HSA)
November 16, 2016

2. What is a HSA?
What are some potential advantages of health savings accounts?
You decide how much money to set aside for health care costs (medical, dental, vision, prescription, etc)
Your employer may contribute to your HSA, but you own the account and the money is yours even if you change jobs.
Any unused money at the end of the year rolls over (stays in your account) to the next year (unlike a FSA)
You don't pay taxes on money going into your HSA
HSA contributions are not subject to the irrevocable election rule, so employees are not locked in at their original contribution amount
Contributions are excluded from federal income tax
Withdrawals for eligible expenses are exempt from federal income tax
Unused money is held in an interest-bearing savings or investment account
Account can be used as a retirement plan for your health care expenses
Debit cards can be used for expenses
Funds can be used to pay for expenses of spouses and dependent children

3. Investing
Employees can deposit funds into their account and earn tax-free interest and investment income year after year. With a HSA, as long as the funds are used for qualified medical expenses, account holders never pay taxes on the money – it’s not a tax-deferred account like an IRA or a 401(k), it’s actually a tax-free account.
$2,000 minimum in HSA to invest
Mutual Fund selection option managed by DEVENIR
Self directed brokerage option powered by TD Ameritrade (trading fees may apply).
Tax-free growth of interest or investment earnings*
For either investment option, integrated, online access to trading, balance information, and much more is available on the HSA Bank website via myCigna.com

4. Eligibility Medical Basic Plan (High Deductible Health Plan) Features:
In-network deductibles of $2,000/individual and $4,000/family
Once deductible is met, the plan will cover in-network expenses at 80% and out-of-network expenses at 60%
100% coverage for in-network preventive care services (no copays or deductibles will apply)
In-network out-of-pocket maximum of $3,500/individual
Cannot have any other health coverage which is not also a qualified high-deductible plan
Not covered by spouse’s medical or pharmacy plan (unless the plan is also a qualified HDHP)
Must not be enrolled in Medicare (A, B or D), TRICARE, or a Full Purpose FSA (including a spouse’s Full Purpose FSA)
Cannot be claimed as a dependent on another person’s tax return

5. The medical claims process
DELIVERING
VALUE.
EVERY DAY.
The medical claims process
If you opt to have your claims displayed on the HSA Bank site, you can elect to have all or some of your claims paid directly from your HSA.
You visit in-network doctor/hospital/ facility
Cigna receives and processes the claim
Cigna sends an explanation of benefits or EOB as your receipt
You can log in to myCigna.com to build an on-demand health statement.
If not, you have the option to pay the doctor bill using your HSA or pay out of pocket.
Sick visit to an in-network doctor/hospital/facility – receive discounted rate for Cigna plan.
Cigna receives the claim from doctor and processes it based on the HSA-qualified plan deductible, covered expenses and Cigna-negotiated discounts.
If you opt to have your claims displayed on the HSA Bank site, you can then elect to have all or some of your claims paid directly from your HSA.
If not, you have the option to pay the doctor bill using your HSA (debit card/checkbook/online bill pay/fund transfer) or pay out of pocket.
Cigna provides an explanation of benefits or EOB (“receipt”) showing: doctor’s fee, Cigna discount, amount billed by the health care plan, amount paid to doctor and what you saved.
You can log in to myCigna.com to build an on-demand health statement. You can customize your statement view according to: date range, claim type, transaction type, family member/self and more.
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2016 Cigna

6. Your HSA web and mobile experience on myCigna
DELIVERING
VALUE.
EVERY DAY.
Your HSA web and mobile experience on myCigna
Real-time HSA balances displayed on the Review My Coverage section of myCigna
Mobile view of HSA account balance and transactions
Welcome Guest
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2016 Cigna

7. HSA Contribution Maximums
Under age 55 and not enrolled in Medicare (based on a 12-month period):
Up to $3,400 individual coverage*
Up to $6,750 family coverage*
Age 55 or older:
Maximum contribution increases by $1,000 (considered a “catch-up” contribution)
Up to $4,400 individual coverage*
Up to $7,750 family coverage*
To make the maximum contribution in a calendar year, you must:
Meet all requirements to be eligible for HSA contributions on January 1
Remain qualified through December 1
If these criteria are not met, maximum contribution is prorated = if 1/12 maximum contribution for each month then individual is qualified
During Open Enrollment, the Benefits Portal will take into account the maximum CALIBRE contribution for you

8. Current Optum Participants
Keep:
$3 monthly maintenance fee if balance is less than $5000
No fee if balance is greater
Transfer:
$20 Fee
Close Account
Self-Transfer
You will not be able to make payroll contributions into your Optum account

9. Current Optum Participants
Transfer
HSA Bank Direct Rollover form
5-10 mail
$20 transfer
Blackout period where funds cannot be used 5-10 days

10. Current Optum Participants
Close Account
Expenses you had, but did not yet reimburse yourself for
Tax penalty
Self-Transfer
Optum Account Close Form
4-5 processing
7-10 processing by HSA Bank after mail receipt
30 day window to mail without penalty (45 total)

11. CALIBRE Incentives- S1 & S3
Enhancement for 2017 is CALIBRE is increasing the HSA contribution earning opportunity to $750 for Employee and $1000 for Family.
The CALIBRE contribution DOES count against annual contribution maximum
CALIBRE will contribute $250 for individuals who complete the UHC Health Risk Assessment
In order to be eligible for the $500 for the family contribution, all covered adults must complete the Health Risk Assessment
Cigna Health Risk Assessment
The additional $500 CALIBRE HSA contribution is contingent on completion of a biometric screening (a physical by your Primary Care Physician will suffice)
Additional instructions will be available in human resources.
Biometric Screening

12. How to Sign Up
Sign up during Open Enrollment using the new Benefits Portal
CALIBRE & Cigna will create your account for you
Must verify information within 60 days
You may sign up later if you choose
May change contribution at any point in time

13. HSA Regulations Expenses eligible for reimbursement from an HSA:
Section 213(d) medical expenses (same list as Flexible Spending Accounts)
Qualified long term care premiums
COBRA premiums
Health care premiums while receiving unemployment benefits
If Medicare-eligible due to age, Medicare and retiree health insurance premiums (but not Medicare supplement policies)
Non-qualified withdrawals are subject to tax and additional excise tax of 20%
Substantiation does not need to be submitted for reimbursement; however, it is the taxpayer’s responsibility to keep it on file
For each employee who enrolls in the Basic Plan and completes the Health Risk Assessment/Biometric Screening, CALIBRE will contribute $750/$1000 into their account (prorated based on date of hire and employment status)*
Employees who are not eligible for an HSA or who are eligible but do not wish to establish an HSA can elect to take the $750/$1000 as taxable income
Funds must be in the account in order for employees to access them
Employees may change their contribution amount at any time throughout the year

14. Questions?