1. Health Savings Plan Overview
August 2016

2. Health Savings Plans Overview of Account-Based Plans
HSAs are funded, individually owned accounts
HSAs are portable, earn interest, and can be invested
HSAs usually funded by employees with some level of employer funding for eligible employees
HSAs have federal mandated design parameters (e.g., deductible and out-of-pocket limits)
100% After Out-of-Pocket
Maximum
Preventive Care and Preventive Rx (100%)
In-Network
Insurance
(example: 80%)
Out-of-Network
Insurance
(example: 60%)
Pharmacy
(example: 80%)
Member
Responsibility
Deductible
Health
Savings
Account
(employer and/or employee funded)

3. Health Savings Plans Overview of Account-Based Plans
Who owns the account?
Employee
Who funds the account?
Contributions are deposited into the account by employee and/or employer
Do funds accrue interest?
Yes, interest accrues tax-free
Do unused funds roll over to the next year?
Yes
Is the account portable between employers?
What type of health plan is compatible with the account?
Only qualified High-Deductible Health Plans (HDHP) like the Colliers Health Savings Plans 1 and 2 3

4. Health Savings Plans Overview of Account-Based Plans
What expenses qualify for reimbursement?
Qualified medical expenses as defined by IRS Publication 502;
Some non-medical expenses are allowed and taxed as income with a 20% penalty until age 65 (after age 65 no penalty)
Are contributions tax-free?
Contributions to the HSA are tax-free and distributions can be taken out tax-free as long as they are spent on qualified medical expenses.
What are the contribution limits?
IRS announces annual contribution limits
Who owns the account value?
Once money is contributed into the HSA, those dollars immediately belong to the account holder. 4

5. Refer to IRS Publication 969 for more information about HSAs.
Health Savings Plans Overview of Account-Based Plans
HSA
Can I access the full amount at the beginning of the plan year for expenses?
No, only funds available in the account can be distributed
Can this fund be used in conjunction with other funds?
HSAs can be used only with a limited-purpose FSA for dental & vision expenses; or a post-deductible FSA (medical expenses reimbursed only after deductible is met)
Who is responsible to substantiate that funds are used for qualified expenses?
Employees bear the responsibility of substantiation
Refer to IRS Publication 969 for more information about HSAs.

6. Two Components of a Health Plan
High deductible health insurance plan (HDHP) design driven by IRS requirements
Deductible is either employee only OR family based on enrollment
Tax-advantaged banking account (HSA)
Employer chooses bank (and usually pays associated fees)
Employee opens up the account if eligible to make / receive contributions
Funding by employer and / or employee
Account belongs to employee and is fully portable

7. HSA Rules Contributions going into an HSA are tax-free1 if:
You are covered by a qualified HDHP like the Colliers Health Savings Plans
You are not covered by a non-HDHP (includes spouses FSAs)
You are not entitled (eligible AND enrolled) to Medicare
You are not claimed as a dependent on someone else’s tax return
Distributions are tax-free and can be used for:
Qualified medical, prescription drug, dental, and vision expenses (Pub 502) for you, your spouse, & dependents claimed on your tax return
Premiums for:
Long-term care insurance
Coverage while receiving unemployment benefits
COBRA premiums
Post-65 premiums EXCEPT Medicare Supplement (such as Medigap) policies
1 Rules apply to the person whose account is receiving contributions

8. 2016 Health Plan Requirements and HSA Limits Set Annually by IRS
IRS Design Requirements
2016
Minimum Deductible – Single
$1,300
Minimum Deductible – Family
$2,600
Maximum Out of Pocket (OOP) – Single (plan design can have a lower OOP)
$6,550
Maximum Out of Pocket (OOP) – Family (plan design can have a lower OOP)
$13,000
HSA Contribution Maximum – Single
$3,350
HSA Contribution Maximum – Family
$6,750
HSA Catch-up Contribution (age 55 or older)
$1,000
Total amount that can be contributed by or on behalf of an employee for the calendar year

9. Tax Savings of your Health Savings Account
Triple tax savings
Contribution dollars going in are not taxed for federal purposes. May be subject to state tax in some states, including California
Earnings in the HSA are not taxed
Distributions for qualified expenses are not taxed
** Mercer studies show 2% trend reduction from addition of HSA

10. Health Care (HC) Related
Tax Summary
401(k)
Health Care (HC) Related
Other
Pre-Tax
Roth
HRA
HSA
HC FSA
Dep. FSA
Contributions tax deductible for employee
N/A
Tax-free growth of investments
Tax-free distribution