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Overview of The Bancorp Bank HSA Solution for Excellus

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Overview of The Bancorp Bank HSA Solution for Excellus. Health Savings Account Program Overview f or Members. B. Introduction to The Bancorp Bank Review of HSA Basics HSA Opening Process Account Materials Statements & Tax Information Funding Options Account Withdrawals

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Presentation Transcript
Overview of

The Bancorp Bank HSA Solutionfor


Health Savings Account

Program Overview



Introduction to The Bancorp Bank

Review of HSA Basics

HSA Opening Process

Account Materials

Statements & Tax Information

Funding Options

Account Withdrawals

Online Tools & Access

Investment Platform

Maximizing HSA Savings

Service & Support


who is the bancorp bank
Who is The Bancorp Bank?

An FDIC insured & publicly traded full-service financial institution with a core focus on Health Savings Account administration

The preferred HSA custodian for the Ameriflex HSA Program

Headquartered locally in Delaware, yet one of the top 5 HSA Custodians

A leading HSA administrator since HSAs were introduced in 2004

Strong relationships with thousands of Healthcare Carriers, Benefits Administrators and Employer Groups throughout the U.S.

The #1 Issuer of Healthcare Benefit Cards


hsa key features
HSA Key Features

Funds deposited into an HSA are tax-advantaged and owned by the account holder

Funds may be rolled over year to year; no “use-it or lose-it” rule

Accounts can accumulate significant assets that can be used for healthcare tax-free

Funds are portable and available through job changes

Funds in the HSA can be invested


hsa eligibility
HSA Eligibility
  • HSA account holders must be enrolled in an HSA-qualified High Deductible Health Plan (HDHP) to open and continue contributing to a Health Savings AccountNote: You can only contribute funds to your HSA while you are covered under an HDHP. If you end your HDHP coverage, you can still draw down and pay for any qualified medical expenses out of your HSA balance.
  • Account holders cannot be covered by any other insurance that reimburses for health expenses (unless another HSA-qualified plan)
  • The account holder cannot be enrolled in Medicare or Medicaid
  • The account holder also cannot be eligible to be claimed as a dependent on another person’s tax return and they must be over 18 years of age



2012 IRS Maximum Contribution Limits

Individual $3100

Family $6250

Contributions are not subject to income tax

Contributions can be made by anyone

Contributions in excess of the allowable limits must be withdrawn or incur a 6% excise tax

Eligible individuals aged 55 or older may contribute “catch-up” contributions of $1000.00 each year until they enroll in Medicare

Only one catch-up contribution is permitted per account for the individual account holder

2013 IRS Maximum Contribution Limits

Individual $3250

Family $6450



According to IRS guidance, funds withdrawn from an HSA may be used to pay for HSA-qualified medical expenses for the following individuals:

Account holder

Account holder’s spouse

Account holder’s tax dependents

If a domestic partner or non-tax-dependent child is covered on an individual’s health plan, they may decide to open their own Health Savings Account to utilize the same tax advantages


distributions continued
Distributions (continued)

Reimbursement can be taken from the HSA for expenses you previously paid out of pocket as long as the HSA was in place when it was incurred

Withdrawals for non-medical expenses are possible, however additional taxes and penalties may apply: Before age 65 the distribution is taxed as income plus an additional 20% penalty After age 65 the withdrawal is only taxed as income

Distributions for qualified medical expenses not taxable!


qualified medical expenses
Qualified Medical Expenses

Some examples:

Rx Drugs

Physician’s Fees



Chiropractic care


Reading Glasses

Contact Lens Solution

Maternity Costs

Laser Eye Surgery

Oxygen Equipment

Dental services

According to the IRS, HSA funds can be used to pay for:

Most Medical Care & Services covered by your health plan along with Dental services, Vision Care & “Alternative” Care

Over-the-counter (OTC) drugs such as pain relievers/cold medicine may be purchased with HSA dollars if the account holder has obtained a Doctor’s prescription

Insurance premiums usually do not qualify, however the following can be paid for with an HSA: - Healthcare premiums while on COBRA continuation coverage - Premiums while receiving unemployment compensation - Medicare premiums - Qualified long-term care insurance premiums


account materials
Account Materials

Account information is transmitted to The

Bancorp Bank. Accounts are automatically

opened as long as all enrollment data passes

a regulatory review.

Bancorp will reach out to any members if any

further verification is needed to open their


Within 2 weeks of account opening, each new

account holder receives the following:

Welcome Letter – Including Online User Id

Password for online access

(may be sent electronically if email is available)

Healthcare Benefits Card

Book of 50 checks

409 Silverside Road, Suite 105 Wilmington, DE 19809

NOTE: After account opening, be sure to watch out for new materials in the mail. For security reasons, account-related materials are mailed in generic envelopes simply noted with a return address of: 409 Silverside Drive, Suite 105 Wilmington, DE 19809

welcome letter
Welcome Letter
  • New account holders will receive a welcome letter covering the following important information:
  • Information about the HSA, including the member’s account number
  • Credentials for online account access
  • HSA Signature Card with a postage-paid envelope for return to the bank
  • A Deposit/HSA Contribution Slip
  • Terms and Conditions (including schedule of fees)
  • Privacy notice


online welcome kit
Online Welcome Kit
  • Employees are encouraged to review their informational welcome kit available onlineGo to “Managing Your HSA > My Welcome Kit”
  • (You do not need to log in to access this section of the site) Save this kit to keep the following information at your fingertips:
  • Guidance on how an HSA works
  • Online Account Tools
  • Contribution/Withdrawal Information
  • Benefits of Maximizing Contributions
  • Additional HSA Management Resources


statements tax information
Statements & Tax Information
  • StatementsAvailable OnlineTax Forms for HSA Account holders:
  • IRS Form 1040 or Form 1040NR
  • IRS Form 8889Download at
  • Employers report all employer contributions (including an employee’s contributions through a cafeteria plan) to a Health Savings Account in Box 12 of Form W-2 with Code W See IRS General Instructions for Form W-2 for more details



filing taxes with a health savings account
Filing Taxes with a Health Savings Account
  • To complete Form 8889, employees use their employer’s form W-2, and their annual HSA contribution and distribution totals which can be pulled via the following methods:
  • "My HSA Snapshot" page – available via online bank account
  • The Bancorp Bank’s Automated Telephone System
  • The Bancorp Bank’s 24/7 Customer Service for Members
  • The Bancorp Bank will send additional records to the IRS and each account holder:
  • IRS Form 1099-SA, mailed by The Bancorp Bank by January 31st(Details annual distributions)
  • IRS Form 5498-SA, mailed by The Bancorp Bank by May 31st (Details annual contributions.
  • Note: Form 5498-SA encompasses all contributions made for the prior calendar year until the tax filing deadline. This document is not to be used for tax filing. It is always sent to employees after the filing deadline has already passed to encompass all deposits



employee contributions details on website
Employee Contributions – Details on Website

Employee contribution options


account withdrawals details on website
Account Withdrawals – Details on Website

Employee withdrawal options


Online Resources:

Online Tools

  • Detailed funding instructions
  • Employee forms
  • FAQs & Tutorials
  • Training information
  • Online calculators
  • The Bancorp Bank company profile
  • Customer Service Contact Information
  • Intuitive online banking tools
Self-directed brokerage account can be accessed after logging into the HSA

Customers may begin investment account once they have met the following criteria:

HSA balance of $2500

Signed and returned HSA Signature Card

Members have access to a list of 90 mutual funds

Brokerage customers are able to place trades, find stock quotes, perform research & track their portfolio

Funds flow automatically to/from the HSA

Investment Platform

maximizing hsa savings
Maximizing HSA Savings

Contribute whatever is possible (up to IRS limit) to increase your tax savings

Try local clinics vs. ERs for minor emergencies; Explore alternatives to physician office visits if it makes sense

Buy generic vs. brand-name prescriptions if they are available

Compare different locations’ costs for medical procedures/testing in advance. It is often possible to find a lower-cost alternative for the exact same procedure

“Bargain shop” for medicines at wholesalers -Check out Wal-Mart's website for their $4.00 prescription list!

customer service support 1 866 271 9995
Dedicated, toll-free Customer Service line for HSA-specific questions/needs

24/7 for members

Automated Interactive Voice Response

Designed with convenience in mind

Access to a variety of account information needs, including annual HSA contribution/distribution totals

Email Service: [email protected]

Customer Service Support: 1-866-271-9995