Health Savings Account

(HSA)

Free Employee Benefits!

Health Savings Account

Flexible Spending Account

Dependent Daycare Reimbursement Account

Limited Flexible Spending Account

What is a Health Savings Account

(HSA)?

A HSA is a bank account created exclusively for you and

designed to:

1. Help you pay for certain qualified health care

expenses on a tax-free basis (for you, your spouse

and your dependents)

2. Help you earn interest on your account balance

3. Help you save for future health care expenses,

including after retirement

HSA plan advantages

• Free contributions from your employer

• Earn interest on your HSA dollars and save for

emergencies, large expenses, or “a rainy day” tax-free

• Pay for qualified medical expenses for your family

• Investment opportunities

• After age 65, no IRS penalty for using funds for non-

healthcare purchases (taxes may apply)

• HSA is portable – it goes with you; you never lose

your money!

Who is ELIGIBLE to participate

in an HSA?

• Must be enrolled in UVa’s Basic Health option (which is a qualified

consumer-driven High Deductible Health Plan)

• Have no other medical coverage or prescription coverage

• Self or spouse is not enrolled in a healthcare FSA (see next slide)

• Not claimed as a dependent on another person’s tax return

• You yourself are not enrolled in Medicare, Medicaid or have not

received veteran’s services in the past three months

• You have not already made maximum contributions to an HSA

• Must have opened an HSA Advantage Account by completing the

HSA Authorization during open enrollment

If you still have money in your FSA after

December 31, 2013:

• HSA account will not be opened until after the Grace

Period (April 2014)

• Employer contributions will not be given until April 2014

• Employer contributions will be prorated by the number of

months remaining in the year

HSA and the 2013 Flexible Spending

Account (FSA) Grace Period

Limits for 2014

Set by the IRS annually

•$3,300 single

•$6,550 family

– Contribution level is based on insurance choice (single or family)

– Includes employer contribution

– If you’re 55 or over, you can add an additional contribution

of $1,000

– Annual limit is prorated based on the number of months remaining

in the year for those who have FSA funds available after 12/31/2013

How is the account funded?

• Employer contributions – $1,000 per single coverage

– $1,500 per employee + spouse or

plus child(ren)

– $2,000 per employee plus family

(all deposited at beginning of year)

• Employee contributions – Can be deducted from your paycheck

on a tax-free basis. Your option how

much; amount can vary.

Health Reward and Non-Tobacco Reward

– Monthly employer contributions of $40 will be

made to active employee’s HSA Advantage

accounts who:

• Pay the employee premium

• Complete a biometric screening and take the

online health risk assessment by October 31,

2013

– An additional $10 monthly employer

contribution can be earned if the requirements

for non-tobacco rewards are met.

Make sure you include these when calculating how much you want

to contribute

Health Savings Accounts

Two-Step Process

Step 1 - Enroll

– Employees must first enroll in UVa’s Basic Health option

Step 2 - Open HSA Accounts

– By reading and agreeing to the HSA authorization when

enrolling in your benefits

–Applicants are verified through national database

–An E-mail will be sent to you if verification fails

–It is very important that you respond to this request

–Unopened account will not receive employer

contributions and will consequently be forfeited by the

employee

Blocked HSA Advantage Accounts

What expenses can be paid

using HSA dollars?

• Deductible expenses

• Prescriptions

• Dental, orthodontia and vision expenses

• And more!

Examples of Eligible healthcare

expenses

• Childbirth Classes

• Chiropractors

• COBRA Premiums

• Contact Lenses / Solution

• Deductible Expenses

• Dental Treatment

• Eye Exams / Eyeglasses

• Health Insurance Premiums (while on unemployment)

• Hospital and Emergency Room Services

• Laboratory Fees

• Learning Disability

• Long Term Care Premiums

• Orthodontia

• Pre-existing Conditions

• Prescription Drugs

• Physical therapy

• Lasik Surgery

• Retiree Medical Premiums & Medicare Premiums

• Smoking treatment program

• Vaccines

• Weight loss programs (prescribed for illness)

• and more!

Good for HSAs, too!

Examples of

Ineligible healthcare expenses

• Cosmetic services and surgeries

• Face lifts

• Genetic testing

• Hair transplant

• Massage therapy

• Medicare Supplemental Policy Premiums*

• Most Medical Insurance Premiums before 65*

• Physical exams (employment related)

• Rogaine

• Teeth bleaching

• Vitamins

• Vision discount membership fees

• Weight loss drugs and foods

• Non health-related expenses

Call Customer Service to confirm or let you know if there’s something you can do to make an item eligible!

What happens if I misuse my HSA?

• IRS penalties and perhaps further auditing

• 20% penalty

• Income taxes are applied

How do I access my account?

Meet Benny®!

Where to use the card:

• Medical and Dental Physicians

• Vision Care Providers

• Medical Facilities – Urgent Care, Hospitals, Emergency Rooms

• Laboratory and Diagnostic Facilities

• And more; wherever for an eligible expense!

How do I get my money?

• Access with your Benny®

• Pay bill from your account online

• Pay expense yourself and reimburse yourself

whenever during your life that you want to!

How do I use my HSA at the

Doctor’s office?

•Show your insurance card

•Your card will show no co-pay is required

•You will receive an EOB (Explanation of Benefits

Summary) from your insurance carrier (Aetna)

•You will also receive a bill in the mail from the doctor’s

office, showing the discounted rate for your visit

(negotiated by your carrier)

•Make sure the EOB and the bill match before paying

your doctor’s bill

How do I use my HSA

at the Pharmacy?

• Show your insurance card

• Your card will show no co-pay is required

• The Pharmacist will enter your insurance information

and the discounted carrier price will be automatically

calculated

• Pay for your prescription with your HSA Mastercard

debit card or by another means of your choice

Benny Reminders for HSA

• If you already have a Benny® from your FSA, your

HSA funds will be added to that same card until it

expires

• Even though the Benny has a MasterCard symbol, it

is not a credit card. HSA funds can only be used as

they are accrued in your account

Benny® Rules

The following is a list of rules and important reminders regarding your Benny:

• Whoever signs the back owns the card

• The debit card can only be used for eligible expenses. If for some reason the coding doesn’t work and the card is used for ineligible expenses you may face possible penalties and suspension

• Save receipts (IRS requirement) – Be able to prove to the IRS that any money you withdraw from your HSA account is for an eligible expense

• Card is good for 5 years; don’t discard or you will be charged for new ones!

• Can be used with HSA only

• Limited to dental and vision expenses

Helpful for large expenses

Don’t have to use your HSA money

Entire amount available to you at beginning of year

More tax-free money for you!

• Maximum election of $2,500

• Can also have Dependent Daycare

Reimbursement Account with HSA

Limited Flexible Spending Account

Any questions so far?

What if I do NOT elect the HDHP*?

You may participate in a

Flexible Spending Account

(FSA)

*Or if you’re not eligible to open an HSA

How Does This “Flex Plan” Work?

• I select an amount that works for myself and/or my family’s

expenses for the duration of the plan year

• That amount is deducted TAX-FREE from each paycheck

and put into my flex account

• I use my flex account to pay for eligible expenses, using my

Benny® or other choice of payment

• Use the worksheet on the back of your FSA brochure to

help you determine how much you may want to set aside

or use the tax-savings calculator on our website

Benny® Again!

Similar to the one for the HSA, but has to be approved by

Chard Snyder for expenses.

Still coded as a MasterCard for convenience.

You can submit receipts if you don’t have or don’t want to use

the Benny.

Using and Substantiating Benny®

Use the card like a credit card when paying for eligible expenses at

the point of service. Expenses are automatically reflected in your

flex account balance. Remember, you may still need to submit

substantiation upon request (always for a dentist visit)

No documentation of a Benny expense is required unless you

receive a Chard Snyder request for it. If so, you must send the

complete information to Chard Snyder with a copy of the

letter you received.

• Download Chard Snyder app!

• Account Review any time

• Mobile Healthcare Claim Submission

• Text Alerts

• Submit Healthcare Substantiation

Mobile Technology

Choosing reimbursement

instead of Benny:

Easy to do and FAST!!! smart phone. online, fax, or mail

All Receipts / Bills / EOB* must include:

• Date of service within the plan year

• Type of service provided

• Service provider’s name and address

• Amount you are responsible to pay

*Explanation of Benefits

Dependent Daycare

Reimbursment Account

(can have with either HSA or FSA)

• Daycare Centers

• After-School Programs

• Nannies, Au Pair

• Care for the Elderly

• And More

– Up to $5,000 this year if filing jointly or single head of household

– Up to $2,500 this year if filing separately

Dependent Daycare

Reimbursement Account

Eligible Daycare Expenses

• Must be while you and your spouse work, go to school full-time, or are seeking work.

• Use for dependents under the age of 13 or who are incapable of self-care

• Eligible providers: – Licensed daycare centers

– An IRS-compliant daycare provider

– An individual who claims their income

– Over the age of 18 who you don’t claim as a dependent

– After-school programs and day camps

Ineligible Daycare Expenses

• Services rendered by one of your dependents or by your spouse

• Services rendered by one of your children under 19 years of age

• Services rendered while you or your spouse are not working (such as overnight summer camps)

Online Account Services

• Automatic email notifications for:**

Claim Status Payment Status

• Periodic email reminders / statements

• Check your account balances online

• View your claim status and history

• And more!!!

** If we have your email address

www.chard-snyder.com

• A 3-minute video you can watch at home

• Frequently asked and answered questions (FAQs)

• Item eligibility clarification, and discounts on FSAStore

• Worksheet, tax-savings calculator

• Information you need to know about your account

• Submit claims

• Access to customer service askpenny@chard-snyder.com

Remember, help is always available on the phone, too!

Our Website

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