Health Savings Account (HSA)

HSA Bank Account Log In | HSA Bank Debit Card

Economical, Rewarding, Alleviates Cost.

How Does It Work?

The Health Savings Account (HSA) is a tax-deferred savings account that allows employers to alleviate the rising cost of health care by helping employees save for qualified* individual or family medical and retiree health expenses on a tax-free basis. Both employers and employees can contribute to the HSA in the same plan year and contribution amounts may be adjusted at any time.

BeneFLEX bridges the gap between the insurance carrier and the HSA trustee by providing critical services necessary for a worksite product, including reporting, ongoing administrations, compliance guidance, legislative updates and contribution management.

Save Big with Pretax Deductions.

Pretax HSA! BeneFLEX offers the added benefit of a section 125 cafeteria plan where HSA contributions can be made on a pretax basis, resulting in an additional 7.65% FICA/FUTA savings to both the employer and employee. BeneFLEX will prepare the required plan documents, conduct nondiscrimination testing, and work with the bank to ensure that accounts are set up and funded properly.

BeneFLEX is partnered with HSA Bank™ as their preferred HSA trustee. HSA Bank is a recognized leader in the HSA market.

Covered Expenses.

Use your HSA funds to pay for the following qualified medical expenses (partial list):

Qualified vs. Non-qualified Expenses.

Under an HSA, qualified medical expenses, like the ones above, can be paid on a tax-free basis. If HSA funds are used towards a non-qualified medical expense, the payment is subject to a 10% penalty and income tax. Participants over 65 can use their HSA funds tax-free for both qualified and non-qualified medical expenses.

No third party substantiation for expenses is required! The account holder is responsible for reporting medical and non-medical expenses directly to the IRS.

Save Money and Maintain Control.

Employers and employees can benefit from the advantages of an HSA:

Example of Contribution Tax Savings**

Individual Coverage  Employee Savings Family Coverage $3,000 Maximum Annual Contribution $5,950 $840 Federal Tax Savings $1,666 $230 FICA Savings $455 $1,070 Total Annual Tax Savings $2,121

This table is based on a 28% tax bracket and is provided as an example of possible tax savings. Actual tax savings will vary by tax bracket.

Eligibility.

In order to contribute to an HSA, an individual:

• Cannot be claimed as a dependent on another person’s tax return
• Cannot be enrolled in Medicare coverage
• Must be covered by a qualified High Deductible Health Plan (HDHP) and no other health plan unless specifically permitted by the IRS.***
• Can also be paired with an Limited Health Flexible Spending Account (LHFSA)

Not sure if your health plan is an HDHP? Refer to our HDHP plan specifications below to find out.

HDHP Plan Specifications.

2010/2011 Individual Coverage Family Coverage   Maximum Contribution Limits $3,050 $6,150   Minimum Deductible $1,200 $2,400   Maximum Out-of-Pocket $5,950 $11,900   Catch-up Contribution $1,000 $1,000

Maximum Contributions.

Up to 100% of the annual maximum contribution limit, even if the deductible for the HDHP is less, can be contributed to the HSA. These funds earn interest tax-free on IRA-approved investments.

Convenient Access to HSA Funds.

HSA Bank offers a variety of withdrawal methods to provide participants with quick and easy access to their account.

• The HSA Bank VISA® debit card makes it easy and convenient to instantly pay for qualified health care services up to the amount available in the account.*
• If preferred, they may also choose the convenience of checks, for a nominal fee, to access the account.
• If participants pay their expenses out of pocket, they also have the option to submit a withdrawal form and HSA Bank will send them a distribution check.
• Participants also have the option to do an ATM or point-of-sale PIN withdrawal for a nominal fee.

To make sure employees receive any network discounts associated with their health plan, they should wait to pay the provider until they have received an explanation of benefits (EOB).

Customer Service and Account Information.

With HSA Bank, participants have access to account information in various ways.

• Dedicated Personal Bankers are available Monday through Friday (except Holidays) from 6 a.m. to 7 p.m. PST. Dedicated Spanish-speaking representatives are available from 6 a.m. to 6 p.m. PST. Call 800.357.6246 with HSA questions.
• Internet Banking through www.HSABank.com provides access to transaction details, check images, year-to-date account information, and so much more, 24 hours a day, 7 days a week.
• Call the automated Bank Line at (800) 565.3512 to check account balances by phone at any time.

Stay in Compliance.

Key rules that govern an HSA include:

• Plan document, Summary Plan Description and Non-Discrimination testing for Pretax HSAs
• Not subject to “use or lose it”—Unused HSA funds roll over from year to year
• No claims substantiation necessary
• Employer contributions must be comparable for all employees