Benefit Guide - People

HEALTH SAVINGS ACCOUNT INFORMATION

WHAT IS A HEALTH SAVINGS ACCOUNT (HSA) AND HOW DOES IT BENEFIT ME? An HSA is a tax - free account you can use to pay for current and future medical expenses. You can choose to contribute to your HSA, much like you would to a

DO I LOSE MONEY IF I HAVE SOME LEFT AT THE END OF THE PLAN YEAR? No. Unlike a flexible spending account (FSA), the balance in an HSA rolls over year to year. HOW DO I WITHDRAW MONEY FROM MY HSA? HSA contributions are available for withdrawal once the funds are deposited, and you can access them through your debit card. You can also order checks to pay for services or to reimburse yourself or use the online bill pay feature of your regular checking or savings account to transfer money from your HSA. WHAT ARE SOME EXPENSES I WOULD USE MY HSA FOR? Your HSA is for qualified medical expenses as defined by the IRS Publication 502, Medical and Dental Expenses. These expenses include, but are not limited to, your medical plan deductible and coinsurance (doctor visits, lab work, x - rays, surgical procedures, prescription drugs, etc.), dental treatment, vision hardware, and more. For more information, visit www.irs.gov . The penalty for nonqualified withdrawals from an HSA is 20%. IS THERE AN ANNUAL MAXIMUM I CAN CONTRIBUTE TO AN HSA? Yes. The IRS maximum HSA annual funding amounts for 2024 are $4,150 if you are enrolled with single coverage and $8,300 if you are enrolled with any type of family coverage. This maximum is inclusive of all funds - from you and your employer. Once you reach the age of 55, you may contribute an additional $1,000 per year to your HSA. If you are newly electing, we recommend prorating your 2024 contribution to half of the maximum since you will be enrolled six months this calendar year. The HSA Base and Buy - Up plan is a High Deductible Health Plan (HDHP) that is partnered with an HSA. Your HSA dollars are to be used for qualified medical expenses, and can help offset your deductible and coinsurance in your new High Deductible Health Plan (HDHP). You are responsible to pay for all medical and prescription expenses until you satisfy your deductible. This means that you will be responsible In - Network for the Cigna negotiated rate rather than your traditional copay. Once you reach your deductible, your In - Network medical services are then either covered 90% or with a copay. Your out - of - pocket maximum is a limit on your behalf – once you reach this, you will be covered 100% for all In - Network medical services and prescriptions on this plan. Note: Eligible preventive care is still covered at 100%, deductible waived. This means that you can still receive your routine physical, well woman exam, and other eligible preventive services at no cost to you.

Flexible Spending account, but with added benefits: 1. The unused balance rolls over year after year

2. The account is yours forever, even if you change jobs, medical plans or retire 3. The money is contributed tax - free, grows tax - free, and can be withdrawn * tax - free * If you are providing coverage for an adult child under the age of 27, while coverage and benefits provided for a non - dependent child through an HDHP maybe tax - free, withdrawals from an employee ’ s HSA are NOT tax - free if used to pay a non - dependent child ’ s medical expenses. Withdrawals from an employee ’ s HSA will be tax - free only if used to pay the medical expenses of the employee, his or her spouse, and his or her tax dependents. The penalty for non - qualified withdrawals from an HSA is 20%. You never pay taxes on the money you put into an HSA, when it ’ s used for eligible medical expenses, which means you save 25 – 40% for every dollar you contribute, depending on your tax bracket and filing status. The 2024 IRS maximum contribution (inclusive of all funds) is $4,150 if enrolled in the HDHP as an Individual and $8,300 if enrolled as Family coverage. WHO IS ELIGIBLE FOR AN HSA? You must be covered by a qualified High Deductible Health Plan (HDHP) like Hunter Strategy ’ s HSA Plans. You cannot have other health insurance coverage (including a spouse ’ s plan) that is NOT a qualified HDHP, you cannot be claimed as a dependent on someone else ’ s tax return, and you cannot be enrolled in Medicare. CAN I OPEN UP AN HSA IF I AM CURRENTLY ENROLLED WITH A FLEXIBLE SPENDING ACCOUNT (FSA)? No. You can only open an HSA effective January 1, 2024 if you are not currently enrolled in the healthcare FSA. If there is a balance in your FSA as of January 1, 2024, you must wait until April 1, 2024 to open the HSA (after the FSA grace period). WHO CAN CONTRIBUTE TO AN HSA? You, your employer, or even a family member can make contributions. You can contribute through pre - tax payroll deductions with Hunter Strategy . WHO OWNS THE HSA? You! The account is yours - even if you change jobs, change medical plans, or retire.

For additional plan information, please refer to your detailed plan design. In the event of a discrepancy, the carrier Plan Document shall prevail.

8

Made with FlippingBook Online newsletter creator