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2014 Health Savings Account Meeting June 25, 2014

2014 Health Savings Account Meeting June 25, 2014. Agenda. Review of Midmark Value Plan HSA Specifics - What is a Health Savings Account - Who is Eligible? - How does it work? - Tax Forms - Decision Support Tools What banks can I use?. Value Plan Teammate Annual Contributions.

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2014 Health Savings Account Meeting June 25, 2014

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  1. 2014 Health Savings Account Meeting • June 25, 2014

  2. Agenda • Review of Midmark Value Plan • HSA Specifics • - What is a Health Savings Account • - Who is Eligible? • - How does it work? • - Tax Forms • - Decision Support Tools • What banks can I use?

  3. Value Plan Teammate Annual Contributions

  4. Health Savings Account • Tax-advantage account available to teammates covered under a high-deductible health plan (Value Plan) and meet other criteria • Checking Account belongs to you – in your name • You can deposit money – pre-tax! • Interest Credited • Unused funds roll over from year-to-year • Portable if leave employer – you take it with you

  5. “Shop Around” for Health Care • Use generic medications, whenever medically appropriate • $4 drugs – Walmart, Target, Kroger, Meijer • Use LIveHealth Online or urgent care center or physician’s office instead of the emergency room • Talk to your physician about treatment options and their relative costs

  6. Contributions • Maximum Contribution per Calendar Year • Single: 2014 = $3,300 • Family: 2014 = $6,550 • Single: 2015 = $3,350 • Family: 2015 = $6,650 • Ages 55& older may make “catch up” contributions of $1,000 • Contact HR AND your HSA bank if you have a change in coverage or status (I.E. family coverage to single coverage)

  7. Withdrawals • Can spend money as it is deposited • Debit Card, Checks, Online Banking, ATM • Withdraws tax free for eligible expenses • Medical, Vision, Dental, Hearing • OTC with a valid prescription • Dates of service must be after account is opened and funded • Save Receipts!

  8. Withdrawals • Monthly bank statements • Money not spent … rolls over every year • If you buy a flat screen TV: • Must pay income taxes plus 20% penalty • If 65 & older, must pay income taxes

  9. Examples of Eligible Health Care Expenses • Out of pocket expenses for services paid by the Midmark Value Plan, dental or vision plans - deductibles, co-insurance, co-pays • Over the counter items as long as you have prescription • Some things are not covered under the medical or vision plan but are still considered qualified medical expenses – ielasik surgery, fertility treatment Full list can be found at IRS.gov Publication 502

  10. Who Can I Use My HSA Money for? • Your spouse- even if they are not covered by your health insurance plan • Your children- if they qualify as your tax dependent (other than income limitation), even if they are not covered by your health insurance plan • (i.e. your “adult child” may be covered by your group health plan, but not eligible to use your HSA funds)

  11. Prescriptions • Will receive Express Scripts negotiated price, no co-pays • Must pay for price of Rx at the time of service • -Use HSA debit card as CREDIT card or • -Write a check from HSA or • -Pay out of pocket and pay yourself back later

  12. What happens at the Doctors Office? • Present insurance card, provider must bill insurance company first • Suggest you do not pay a medical bill until you receive an Employee OB • EOBs are the “negotiated” amount • Paying for your expense: • -Use HSA debit card as CREDIT card or • -Write a check from HSA or • -Pay out of pocket and pay yourself back later

  13. Eligibility • Must be covered by HSA-eligible HDHP (Value Plan) to contribute • Not eligible to contribute if covered elsewhere by: • Traditional 1st dollar benefit plan with Rx and doctor office co-pays, • Medicare, Medicaid • TRICARE, VA benefits (within last 90 days), and/or • General purpose FSA or HRA through employer or spouse’s employer • Not eligible to contribute if a tax dependent

  14. Tax Forms • W-2 • Pre-tax employee contributions • Custodial Bank Responsibility • 1099-SA: sent to owner for distributions • 5498-SA: sent to owner for contributions • Account Owner Responsibility • Tax Return • Attach 8889 to 1040

  15. Additional Things to Consider • Cash Flow • Keeping Receipts

  16. Decision Support Tool • Decision Support Tool Link Doing a cost comparison of the plans that are offered to you is easy. Simply go to www.mymidmarkbenefits.com, click on the all the details button, choose 2014 plan information and you can find the decision support tool under the consumer tools tab.

  17. About the banking…

  18. Questions

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