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The BlueSaverSM HSA from Bank of America

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Presentation on theme: "The BlueSaverSM HSA from Bank of America"— Presentation transcript:

1 The BlueSaverSM HSA from Bank of America
Savings for Today and Tomorrow This presentation is for Automatic Enrollment customers only.

2 How Does the BlueSaver HSA Work?
A tax-advantaged savings account for qualified health care expenses A Health Savings Account (HSA) works with your Independence Blue Cross qualified high-deductible health plan (HDHP). With an HDHP, the amount you contribute to the cost of your health plan is lower and your deductible higher. With an HSA, you can: Use the money you save on a lower premium plan to make tax-deductible HSA contributions Make withdrawals to pay for your deductible, co-pay and other qualified medical expenses Save for future health care expenses, because you own the account

3 What can you use it for? Qualified Medical Expenses include:
Most medical care and services Office visit co-payments Chiropractic care, smoking cessation, weight loss Dental services Vision care Health insurance premiums under COBRA continuation coverage or while receiving unemployment compensation Medicare Part A or Part B premiums A qualified long-term insurance contract

4 Tax Benefits of the HSA Contributions are not subject to income tax
Contributions can be made by: The employer You Pre-tax via payroll deductions Post tax via direct deposit (your tax deductible contributions are recognized when filing taxes) By any other third party Contributions in excess of allowable limits must be withdrawn or incur a tax penalty 2015 Contribution Limits Contribution Type Amount Individual $ 3,350 Family $ 6,650 Annual Catch Up* $ 1,000 * Only individuals 55 or older may contribute the “catch-up” contributions, and only until they enroll in Medicare Include options as appropriate

5 Tax Benefits of the HSA Tax-advantaged dollars can be invested while maintaining their tax- advantaged status, resulting in a significant tax savings over time. One of the significant advantages of your HSA is that your contributions roll over from year to year. If you don’t use the funds to pay for medical expenses, the money remains in your account and has the potential to earn interest through a variety of savings and investment choices. Let’s assume your tax bracket is 15%, state taxes are 3%, and that your investment choices yield an interest rate of 2%. If you contribute $2,000 to your HSA each year for 10 years and use $1,000 each year to pay for qualified medical expenses, you could save over $3,800 in taxes and benefit from almost $1,000 in account earnings.

6 HSA Key Features and Eligibility
Key Features of an HSA HSA Eligibility Funds deposited into an HSA are tax-advantaged and owned by the account holder Participants must be enrolled in a qualified high-deductible health plan (QHDHP) before opening an HSA Funds may be rolled over year to year; no “use-it or lose-it” rule Cannot be covered by any other insurance plan that reimburses for health expenses Accounts can accumulate significant assets that can be used for healthcare tax free Cannot be enrolled in Medicare or Medicaid Funds in the HSA can be invested in mutual funds once balance requirements are met Cannot be eligible to be claimed as a dependent on another person’s tax return and must be over 18 years of age Funds are portable and remain available if you change jobs Cannot be covered by a general purpose healthcare FSA or a general purpose HRA. Alternative plan designs such as Limited Purpose FSA or Limited Purpose HRA may be permitted under certain circumstances

7 The Bank of America HSA No monthly account fee when you are enrolled in an Independence Blue Cross qualified HDHP Integrated with your healthcare member portal View and pay claims online Plan Activity Statements let you see how the HSA works with your medical plan Integrated customer service Wide variety of investments available once $500 accrued

8 Managing Your HSA Tools to help you every step of the way

9 Opening a Health Savings Account
If you select an Independence Blue Cross qualified HDHP, you will automatically have a Bank of America HSA opened If you do not want this account, you do not have to take any action If an account does not receive any contributions within the first 90 days of being opened, it will automatically be closed Automatic account opening slide Include automatic or manual opening slide depending upon what the customer has chosen

10 What to Expect Once the HSA is Opened
You will receive a debit card in the mail Debit card will be active with the start of the plan year (or when the account was opened) Funds must be deposited into the account before the card can be used You will receive an HSA welcome kit in the mail How to use the HSA How to make direct contributions Where to go with questions You will have full access to your HSA from the member healthcare portal

11 Employee Fund Access HSA health care Visa® Debit Card issued to HSA account holders Reimburse all or part of account holder’s qualified expenses At point-of-sale locations Pay amounts up to available HSA funds at time of payments Direct Pay to Provider Pay providers directly from Providers are able to easily connect your payment to a bill because the payment references the claim number Online Payment Easy way to pay for medical expenses directly from HSA Monitor, manage and schedule payments online any time Reimburse yourself if you pay for an service using another account, you can reimburse yourself

12 Managing your HSA Integrated website to access the medical plan and the HSA Customer service support through Independence Blue Cross Plan Activity Statement shows claim from both a medical and spending account perspective Monthly HSA Statement that shows HSA activity Investment options and information available online once you have $500 in the account HSA savings calculator tool to see how your HSA savings can grow over time

13 Plan Activity Statement
Information on EOBs, claims, spending accounts, and payments are consolidated in the Plan Activity Statement, a single, user-friendly statement.

14 Employee Online Experience
Easy access to helpful tools and resources

15 Manage Your Spending Account Online
Spending accounts can be easily accessed from

16 Manage Your Spending Account Online
The YOUR COVERAGE tab provides information about benefits, discounts, and allows you to order ID cards.

17 Manage Your Spending Account Online
Claims tab shows status and submission of a claim to the spending account.

18 Submitting a Manual Claim
Employees can submit claims for self reimbursement or payment to a provider Show Payment Integration And how did that HRA payment happen? It can be set up so that it’s automatic…a great way to simplify the introduction of an HRA. Or you can also set it up so that the member decides. Something that we always do with HSAs…as it allows them to pay from their HSA or save their funds for investments later.

19 Claim Integration Medical claims, member liability, and spending accounts all work together Pay claims with employee liability directly from the claims information Show Claim Integration Quick walk through of a claim. Pointing out Ability to filter claims Summary information Details available Paid by HRA All of this means it’s easy for a member to log on, see their medical claim and see how their responsibility was covered through the spending account.

20 Payment Integration Payments can be made to the provider or back to the employee Show Payment Integration And how did that HRA payment happen? It can be set up so that it’s automatic…a great way to simplify the introduction of an HRA. Or you can also set it up so that the member decides. Something that we always do with HSAs…as it allows them to pay from their HSA or save their funds for investments later.

21 View Your Claim Payment History
Payment status and history can be viewed and refined.

22 HSA Investments Over 20 fund options through Bank of America

23 Investing in the HSA You will be able to invest exceeds $500
There are no separate trading or administrative fees You will have a single account with two parts Similar to a 401(k) in terms of investments Investment guide gives you an overview of process as well as options Quarterly investment statements provide updates on performance

24 Investing in the HSA Wide range of investment options designed to meet the diverse investment needs of individuals Performance comparison chart, prospectus, fact sheet, Morningstar Report available online

25 Moving Funds from Another HSA
Account holders can opt to consolidate funds into the Bank of America HSA Transfer funds without losing tax-advantaged status Funds with another bank will not benefit from integration Existing accounts remain available for eligible expenses in the new plan year Account holders should only initiate fund transfer after the Bank of America HSA is open Best time to transfer funds will vary by member

26 Bank of America Account Holder Fees
Item Fee Monthly maintenance fee * Waived Additional debit cards (up to 4) Brokerage account fee Investment transaction fee Account closure/rollover $ 25.00 Deposited item returned, per item $ 5.00 Contribution deposit slip re-orders Legal process fee (e.g., attachment, levy or garnishment), per occurrence $ 75.00** Stop payment, each Excess contribution, per return Mailed copy of account statement or tax statement (each) Mailed copy of deposited item, each * While enrolled in Independence Blue Cross Qualified High Deductible Health Plan ** Or such amount as may be established by law.

27 Questions?

28 Thank you

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