A GUIDE TO Implementing Your HSA Program€¦ · hsa-works-infographic F TAX-DEDUCTIBLE F...

Implementing Your HSA Program

A GUIDE TO

Look inside for:

> Tips on how to start the HSA conversation

> Strategies for pitching and selling the investment HSA

> A roadmap for implementing your HSA program

> And much more

A GUIDE TO IMPLEMENTING YOUR HSA PROGRAM | HSA xChange is powered by HealthSavings Administrators 1

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Beyond Implementation . . . . . . . . . . . . . . . . 264

Start HereThis reference book will guide you through selling and implementing your health savings account (HSA) program administered by HSA xChange. Each section has a specific focus. Depending upon your immediate need, and your experience with HSAs, you can quickly navigate to the section that is most useful in the moment.

Feel free to use the resources throughout this guidebook to help explain and pitch HSAs to Plan Sponsors and Participants.

Sales Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Find the Right Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Reach Out to Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Implementation Process . . . . . . . . . 15Step 1: Register Your Firm—Investment Firm Establishment Guide . . . . . . . 17

Step 2: Register Your Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Step 3: Register Plan Sponsors—Plan Establishment Guide . . . . . . . . . . . . . . . 20

Step 4: Enroll Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Step 5: Access Accounts and Receive Payment (Optional) . . . . . . . . . . . . . . . . . 23

Transfer Existing HSAs to HSA xChange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Enroll Individual Wealth Management Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

The Pitch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Understand the Basics: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How an HSA Works, HSA Eligibility, Contributions, Distributions and Tax Reporting

Highlight Accountholder Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Highlight Plan Sponsor Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Differentiate Your HSA Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Customize Your Pitch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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HSAs can be much more

than a medical tax shelter.

In their most productive

form, they become part of a

comprehensive retirement

strategy. But there are

often misconceptions

and a general lack of

understanding around HSAs.

Even though some 20

million Americans have

HSAs, according to recent

studies by the Employer

Benefits Research Institute

(EBRI), they are still not

The Pitch1commonplace. So there’s

just as much potential for

growth as there is need for

education—which you are in

an ideal position to provide.

Use the resources in this

section to brush up on

HSA basics, craft your pitch,

and articulate the value

HSAs offer.



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Understand the BasicsWhile it’s not necessary to become fluent in HSAs (that’s why we’re here), you want to feel confident answering clients’ basic questions about how HSAs work and how they fit into a retirement strategy.

Use these resources to help answer Plan Sponsors’ and Participants’ frequently asked questions.

www.HSA-xChange.com

How an HSA Works

Choose the best doctor either in-network or out-of-network.

Visit the hospital, lab, doctor’s office or imaging area.

No copay is required

(before deductible — some plans require copay after deductible).

Present your insurance card.

An Explanation of Benefits (EOB) will arrive in your mail to explain what’s covered.

The provider will send you a bill for the amount not covered.

Take your prescription to the pharmacy and present your insurance ID card.†

MEDICALPHARMACEUTICAL

Pay the provider by either:

Use your HSA funds (debit card or transfer investment funds to your personal account)

Paying OUT-OF-POCKET and keep money in your HSA investments. (You must save your receipts to REIMBURSE yourself tax-free in the future)

TAX

The Pharmacy will confirm your insurance coverage and charge you only the

discounted rate.

Funds go into an individual account TAX-DEDUCTIBLE

Funds ACCUMULATE and carry over from year-to-year

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OR

Pay the provider by either:

Use your HSA funds (debit card or transfer investment funds to your personal account)

Paying OUT-OF-POCKET and keep money in your HSA investments. (You must save your receipts to REIMBURSE yourself tax-free in the future)

TAX

OR

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* Refer to IRS Publication 502 for complete list of eligible expenses.HSA xChange is powered by HealthSavings Administrators

*

*TIP: Confirm the bill matches your EOB

Infographic

How an HSA Works

HSA-xChange.com/ hsa-works-infographic

Video

Real Talk: HSAs Managing Common Misconceptions

HSA-xChange.com/video-resources

HOW HSAs WORK

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http://hsa-xchange.com/wp-content/uploads/2015/03/How_HSA_Works_Infographic_web.pdf



http://HSA-xChange.com/video-resources






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Video

Paying for Eligible Expenses


Video

Tax Time


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Design Overview

And you can change your contribution amount as often...

Even if they’re on different health insurance. Even if they’re not eligible to have their own HSA.

...as your employer allows, even without a qualifying event.

Even if you become ineligible to contribute to your HSA, you can continue to pay medical expenses tax-free from the funds currently in your account.

Your HSA dollars are always available to pay for eligible medical expenses—for you, your spouse, and your tax dependents.

The 20% penalty for using your HSA for non-eligible expenses is lifted at age 65.

Cut to a close up of our circle HSA. More rings reveal and trans-form into a dial.

Dial turns up the contribution as the yellow ring turns green. Arrows and lines illustrate medical expenses being covered for you and your family.

Different colored background slides in illustrating different in-surance and eligibility.

Contribution arrow is blocked but medical expense withdrawals continue to flow.

Cut to a close up of our HSA. Non-eligible expenses passes through a 20% penalty.

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Design Overview

At that point, you just have to pay ordinary income tax on with-drawals for non-eligible expenses...

...even years down the road.

...making your HSA a lot like a regular retirement fund.

You can invest your HSA funds. Since the funds roll over year-af-ter-year, and you can postpone reimbursing yourself indefinitely...

If you save your receipts, you can reimburse yourself for eligible expenses later...

...HSAs can grow to become sizeable nest eggs.

Penalty is lifted. Different retirement funds appear and rotate around our HSA Expenses enter frame and reveal receipt.

Reimbursment flows out of circle. Large ‘funds growth’ chart begins to grow. Cut to a large circle with growth illustrated.

DISTRIBUTIONS

TAX REPORTING

Interactive Tool:

Eligibility Assessment

HSA-xChange.com/ eligibility

Video:

Eligibility


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Design Overview









ELIGIBILITY

Video:

Contributing to Your HSA


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Design Overview

And you can change your contribution amount as often...

Even if they’re on different health insurance. Even if they’re not eligible to have their own HSA.

...as your employer allows, even without a qualifying event.

Even if you become ineligible to contribute to your HSA, you can continue to pay medical expenses tax-free from the funds currently in your account.

Your HSA dollars are always available to pay for eligible medical expenses—for you, your spouse, and your tax dependents.

The 20% penalty for using your HSA for non-eligible expenses is lifted at age 65.

Cut to a close up of our circle HSA. More rings reveal and trans-form into a dial.

Dial turns up the contribution as the yellow ring turns green. Arrows and lines illustrate medical expenses being covered for you and your family.

Different colored background slides in illustrating different in-surance and eligibility.

Contribution arrow is blocked but medical expense withdrawals continue to flow.

Cut to a close up of our HSA. Non-eligible expenses passes through a 20% penalty.

CONTRIBUTIONS










http://HSA-xChange.com/eligibility

http://HSA-xChange.com/eligibility





http://hsa-xchange.com/about-hsas/eligibility/







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Highlight Accountholder Benefits

1. HSAs offer more tax benefits than any savings vehicle on the market. Contributions are tax deductible for Participants. Earnings and interest grow tax-free. And withdrawals for eligible medical expenses are tax-free, too.

2. The money in your HSA rolls over year after year. It’s not use-it-or-lose-it, like flexible spending accounts (FSAs) or other medical savings plans.

3. HSAs are individually owned. So if you leave your employer, retire, or move, your account—and all the money in it—stays with you.

4. You get to select which HSA provider to use. You don’t have to go with the one your employer chooses if you don’t want to.

5. If you do contribute through your employer, you can change your contribution amount as often as your employer allows, even without a qualifying event. Note: Employers are required to allow you to make changes at least quarterly.

6. Your HSA dollars are always available to pay for eligible medical expenses—for you, your spouse, and your tax dependents. Even if they’re on different health insurance. Even if they’re not eligible to have their own HSA.

7. Even if you become ineligible to contribute to your HSA, you can continue to pay medical expenses tax-free from the funds currently in your account.

8. The 20% penalty for using your HSA for non-eligible expenses is lifted at age 65. At that point, you just have to pay ordinary income tax on withdrawals for non-eligible expenses, making your HSA a lot like a regular retirement fund.

9. You can reimburse yourself for eligible expenses later—even years down the road. Check out the video titled “Think Inside the (Shoe)Box” for a quick primer on how this works.

10. You can invest your HSA funds. And since the funds roll over year-after-year, and you can postpone reimbursing yourself indefinitely, HSAs can grow to become sizeable nest eggs.

HSAs are powerful savings vehicles that allow Participants to save for current and future medical expenses. For those who are eligible, HSAs are one of the most flexible tools on the market. Here are talking points on ten reasons why:





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Investing in a healthy future has never been so easy.

Gain control of healthcare costs.

Build a comprehensive retirement strategy.

Discover peace of mind.

Brochure

Investing in a Healthy Future Has Never Been So Easy

HSA-xChange.com/GeneralInfo

Video

Think Inside the (Shoe)Box


Infographic

Accountholder Benefits

HSA-xChange.com/account-holder-benefits-infographic

Video

The Benefits of HSAs


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Design Overview









Contributions are TAX DEDUCTIBLE

Earnings and interest invested in mutual funds grow TAX-FREE

Withdrawals for eligible medical expenses are TAX-FREE

GROWTH

HEALTH

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3

1 CONTRIBUTIONS

TRIPLE TAX SAVINGS

INDIVIDUALSfor

An HSA account isindividually owned

3 Simple Ways to Save

Funds in the account can also be used to pay the eligible medical expenses of your spouse and tax dependents, even if they are not on your HDHP.

Eligible medical expenses include medical, vision, dental and prescriptions

Savings invested in mutual funds can supplement other retirement plans.

PORTABLE

stays with you when you change jobs, change insurance, or retire

can provide a safety net between jobs to cover Cobra insurance

An HSA...

• Your choice of mutual funds, debit card, or combination of both.

• First dollar investing - no requirement to fund, or maintain, a balance in a debit card account

SMARTER

RETIREMENTPLAN STRATEGY

Savings from lower premiums can be deposited into the health savings account

LOWER PREMIUMS

and can continue to grow

The BALANCE rolls over year-to-year...

INVESTING

Benefits

www.HSA-xChange.com


http://hsa-xchange.com/wp-content/uploads/2016/02/HSA-AdvisorKit-GeneralBrochure-Web.pdf






http://HSA-xChange.com/account-holder-benefits-infographic

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HSA-xChange.com/AHBenefits



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Infographic

Plan Sponsor Benefits

HSA-xChange.com/employer-benefits-infographic

Beyond the FICA savings, there are other important benefits to note for Plan Sponsors:

• A strong HSA program—especially one with investment options and first-dollar investing— can be used as a recruitment and retention tool.

• A retirement savings focus complements financial wellness incentives.

• HSAs encourage employees to become better cost-conscious consumers of healthcare. And an increase in consumer involvement results in lower annual premium increases.

Highlight Plan Sponsor BenefitsAs great as HSAs can be for Participants, there are important benefits for Plan Sponsors as well. First and foremost, your clients—both Plan Sponsors and Participants—can benefit from making pre-tax payroll contributions to an HSA.


http://HSA-xChange.com/employer-benefits-infographic

http://HSA-xChange.com/employer-benefits-infographic

http://HSA-xChange.com/EmployerBenefits



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Maybe your client has bought into the benefits of offering an HSA. But they might want to know why your HSA program is their best bet. Here are some talking points and resources to help with that conversation.

Differentiate Your HSA Program

I want your employees to think about HSAs as a long-term retirement solution—which is why I work with HSA xChange. Almost all competing HSAs are provided by banks. Their focus is developing an easy-to-use transaction account. Because the bank business model generates most of its revenue from the interest spread (200–250 basis points on deposits, on average) and charges on debit card transactions (interchange fees) there is very little incentive to encourage investing the HSA balance. HSA xChange is different. They make it easy for Participants to accumulate and invest their funds for the future. At the same time, their platform offers debit card integration for those Participants wishing to access funds for more immediate qualified medical expenses.

HSA xChange offers tools to help Participants maximize their HSA as part of a retirement strategy— in addition to a short-term medical savings strategy. HSA xChange offers first-dollar investing in more than 500 investment fund options. Plus, there are no additional fees to access the investment option. And I can customize the fund lineup your employees see to remove the guesswork.

I can help manage your employees’ investments, to the extent they desire. As with any retirement savings vehicle, employees deserve guidance. HSA xChange makes it easy for me to manage employees’ investments, the same way I manage their investments in traditional retirement accounts. I can serve as the one-stop-shop for retirement investment guidance.

HealthSavings Administrators has a long track record. HealthSavings administers the HSA xChange platform and started as a medical savings account (MSA) administrator in 1996. After the legislation enacting health savings accounts (HSAs) passed in January 2004, the organization turned its focus to HSAs. Today, they work exclusively with HSAs, helping clients in all 50 states take responsibility for their health and financial futures through education and investment-focused products and services.


OVER THE YEARS, HEALTHSAVINGS ADMINISTRATORS HAS BEEN REFERRED TO AS

“THE INVESTORS’ HSA”

It has also been nationally recognized as one of the best values in HSAs in Forbes, Money magazine, the Wall Street Journal, Kiplinger’s and Reuters as well as various online publications, including 20 Something Finance, Investment News, Market Watch and others.

HEALTHSAVINGS’ BALANCES ARE

7X

THAN THE NATIONAL AVERAGE.

A 2017 study of our accountholders showed that those accounts with some investments had balances in excess of $14,000, while accountholders purely in cash had an average balance of only $1,900, supporting our belief that if you tell the story differently, you get a different result. That’s proof that its customers understand the long-term value of HSAs.

Brochure

Do Your Employees Know About HSAs?

HSA-xChange.com/DoEmployeesKnow >

1MAY 2017 | DO YOUR EMPLOYEES KNOW ABOUT HSAs?

As estimated retirement healthcare expenses grow, it’s more important than ever to educate eligible employees about HSAs — not just as tax-favored health savings tools, but as the unique retirement savings tools that they are.

MAY 2017

Do Your Employees Know About HSAs?

A GUIDE TO IMPLEMENTING YOUR HSA XCHANGE HSA PROGRAM | HSA xChange is powered by HealthSavings Administrators 9


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HIGHER


http://HSA-xChange.com/DoEmployeesKnow





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Customize Your Pitch HSAs are a high-touch account for the Participant. In that regard, they are substantially different from the 401(k). The expectations of the Participant and the demands on the HR department are different than the typical retirement plan. Addressing the needs of the three key customers—the C-suite, HR and the Participant—is key to successful HSA adoption. Here are some talking points geared toward each audience.

KEY POINTS BY AUDIENCE

• HSA-qualified plans mean lower insurance premiums.

• Employee contributions equal FICA reductions for the employer and the employees.

• Increased consumerism equals smaller annual healthcare cost increases.

• First-dollar investing gives all employees an opportunity to save and invest.

• The funding process is similar to the 401(k) funding process.

• Investment options can be used as a recruitment and retention tool and are particularly attractive to millennials.

• Retirement focus complements financial wellness initiatives.

• Employees can see the debit card balance and investments in one place.

• First-dollar investing lets employees maximize their money from day one.

• Easy access to investments is attractive to Highly Compensated Employees (HCEs).

• Tying the HSA into the retirement discussion helps employees plan for their two biggest fears (Retirement and Healthcare Expenses) at the same time.

• There is no minimum balance required.

• There are no investment transaction fees.

• Up to two free debit cards (optional) are included that can be used to pay eligible medical expenses.

• Transferring funds between cash and investments can be done with one login.

Cost containment, tax savings

Ease of implementation, recruitment

Ease of use

CEO/CFO

Human Resources

Participants




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KEY POINTS BY AGE AND STAGE

Also, among Participants, the attraction to HSAs varies based on age and financial stability.

For younger employees, HSAs are attractive for different reasons:

• They can save money on their health insurance premiums.

• The HSA-qualified plan caps out-of-pocket expenses, while PPOs include cost-sharing at very high levels.

• In the worst-case scenario, many younger employees will end up spending what they would with the traditional PPO. But in a healthy year (any many younger employees are relatively healthy), they’ll be able to pocket and invest those dollars.

• Tax savings are often viewed as a government rebate.

EMPLOYEES:

White Paper

Making HSAs Relevant to Millennials

HSA-xChange.com/millennials-white-paper

eBook

The Complete Guide to HSAs and Medicare

HSA-xChange.com/medicare-guide

AUGUST 2016 | MAKING HSAs RELEVANT TO MILLENNIALS 1

With decades ahead until retirement, Millennials stand to gain the most from investing in a health savings account (HSA). But research shows they lag behind other generations in understanding—and leveraging—the long-term benefits of HSAs.

Making HSAs Relevant to Millennials

In early 2016, HealthSavings Administrators and HSA Coach partnered to survey HealthSavings’ accountholders. In analyzing the data, insights surfaced about how Millennials view and use HSAs.

AUGUST 2016

Read on for 5 quick insights, as well as 5 tips for presenting the benefits of HSAs to Millennials.

A Guide to

Health Savings Accounts andMedicare

Discover how Medicare impacts your HSA, and get answers to frequently asked questions.

For those employees near retirement:

• The ability to increase their HSA contributions with catch-up contributions is important.

• IRS regulations allow the tax-free inheritance of the HSA to the spouse.

• There are no required minimum distributions, unlike an IRA.

• HSA dollars are available to pay long-term care premiums and Medicare parts B and D.

• There are no penalties for non-qualified withdrawals after age 65. Withdrawals are subject only to normal income taxes.

• Employer contributions to the HSA are viewed as an additional benefit from the employer.

• The investment opportunity is appealing, and the opportunity for compound interest is great, especially given the length of time until retirement.

• While HSAs are attractive to many consumers, they are especially appealing to those who recognize they rarely access the insurance benefit.

• There is no need to itemize to get the tax savings.


http://HSA-xChange.com/millennials-white-paper

http://HSA-xChange.com/millennials-white-paper

http://HSA-xChange.com/medicare-guide

http://HSA-xChange.com/medicare-guide

http://hsa-xchange.com/wp-content/uploads/2016/08/Millennials-and-HSAs-White-Paper.pdf

https://healthsavings.com/wp-content/uploads/2017/09/medicare-guide.pdf

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Armed with the resources and knowledge you

need to pitch your HSA program, it’s time to kick

off the conversation with your clients.

This chapter includes resources you can use

to identify potential clients, break the ice, and

eventually pitch an investment HSA.

Sales Strategies

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Your clients deserve your HSA. You choose the funds and how to be compensated. We create your custom investment HSA and handle administration, recordkeeping, education, service and more. Now you can offer HSA investment management services to the same clients who know and trust you for other services, like 401(k)s, 403(b)s, IRAs, etc.

So which clients should you start with? If you answer “yes” to the questions below for a specific client, you can be assured that client is a good candidate for an investment HSA.

Does your client:

• Currently offer employees an HSA? If yes, then you should ask if there is an investment option. Most likely, their HSA is provided by a bank that may or may not have an investment offering. Banks make 200–250 basis points on those deposits on average, so there is little incentive for them to encourage investing of the HSA.

Find the Right Clients• Have an HSA-qualified high deductible health plan,

or are they considering one? 85% of employers already offer a HSA-qualified plan, but ever-increasing health care expenses are forcing more employers to move that way each day. By switching to a consumer-driven health plan, the employer can reduce the rate of increase in future premiums. In the end, both the employer and the employees benefit.

• Offer employees a rich benefits package? The fact that an employer offers a rich benefits package can be seen as a double opportunity. They already want to care for the employees. By switching to an HSA-qualified plan, the employer can reduce insurance premium costs for both the employee and the employer and provide incentives for employees to become better consumers. Additionally, some of those savings can be given to the employees in the form of an HSA contribution.

• Have employees who are worried about healthcare expenses—both today and for the future? They should. A 2016 Scottrade study indicated healthcare costs were the number one reason to delay retirement. And employees will admit that they are not prepared to absorb a significant healthcare expense.


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Reach Out to ClientsYou’ve identified clients that could benefit from your investment HSA. Next, dig a little deeper. A little knowledge of the current environment can pay big dividends, and it also gets the conversation started. The questions below will help you understand the availability of the required health insurance and the Plan Sponsors’ commitment to the HSA as a cost containment and retirement readiness tool.

How many employees are covered on the HSA-qualified health plan? How many currently participate in the HSA? This will give you a clue as to the scope of potential HSA Participants. If the HSA is new to this Plan Sponsor, you may see 30–40% of employees switch in the first year.

How many health insurance plans are offered? The greater the number of insurance offerings, the more likely there is a bias toward the traditional insurance coverage and lower participation in the HSA. However, other factors can sometimes offset that issue. With multiple insurance plans being offered, HSA participation can cap out at around 50–60%. The good news: more employers have a long-term goal of making the HSA qualified plan the only plan. If more than one plan is offered, it is important to look at the Plan Sponsor’s subsidy of the premium. By subsidizing the HSA-qualified plan, and contributing to the HSA, the employer can provide a strong incentive to choose and fund the HSA. Note that many of the Participants seeking the lowest cost can be more “spenders” than “savers.” So education becomes even more important to this group.

Does the Plan Sponsor offer a Section 125 plan? This allows Participants to make painless pre-tax contributions via payroll deduction and save FICA.

Is the Plan Sponsor contributing to or open to contributing to, Participants’ HSAs? Nationwide, the average contribution hovers around $1,800 per year, according to data from the Employee Benefits Research Institute (EBRI). Studies also indicate that employer contributions result in greater HSA adoption. And greater adoption means more contributions from employees, which saves the employer even more in FICA taxes.

Does the Plan Sponsor pay the HSA administrative fees? Both an employer contribution and the payment of the administrative fees boost HSA enrollment. And the Plan Sponsor wins, too. The Plan Sponsor saves the FICA on all of those Participant contributions through the Section 125 plan.

Does the Plan Sponsor currently have an FSA? FSA participation makes one ineligible for contributing to an HSA. But “Limited” FSAs are allowable. They pay only for Vison and Dental and do not prohibit Participants from making HSA contributions.

Does the Plan Sponsor’s current HSA (if applicable) have an investment option? A recent Internet search of HSAs found only 7% offer a mutual fund or self-directed brokerage option.

Sales Tip:Most banks require a set amount to be maintained in the checking account prior to having access to an investment option. Occasionally, the administration fee will be waived if the checking account balance is above a set limit. This required balance can be as much as $5,000. For the employee who can invest their HSA dollars, this represents a huge opportunity cost. Forgoing a modest 3% return represents an annual cost of $150.


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Implementing your HSA management services

program is easy—although it requires a few

important steps to ensure you and your clients

get exactly what you need.

The Implementation Process

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Process at a Glance

STEP 1: REGISTER YOUR FIRM

STEP 2: REGISTER YOUR ADVISORS

STEP 3: REGISTER PLAN SPONSORS

STEP 4: ENROLL PARTICIPANTS

STEP 5: ACCESS ACCOUNTS, RECEIVE PAYMENT

Request a copy of the Investment Firm Establishment

Guide to get started!

You’ll receive registration details so your Advisors can

register and gain access to the Advisor Portal.

Plan Sponsors complete the Guide and register.

Plan Sponsors enroll Participants.

Advisors access Advisor Portal and provide ongoing access

and support.




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Read on for details around setting your Firm up with HSA xChange:

A. Contact [email protected] to receive a copy of the Investment Firm Establishment Guide, pre-filled with your Firm’s basic information.

B. Complete all four required sections of the Guide and email them to [email protected]: • Investment Firm Set-Up Form & Agreement • IRS Form W-9 • Corporate Overview & Logo Request Form • Fund Line Up Request Form (your Firm’s Master Product) • Payment Information Form (optional)

C. Once we receive all four sections of your signed and completed Guide, we’ll review it to ensure we have all the information we need to enter your Firm into our system. We’ll reach out if there are any gaps to fill.

D. We’ll enter your Firm into our system—which can take 3–15 business days, depending on whether there are any issues with your requested fund line up.

D

C

B

A

Setting up your Firm only needs to happen once, and we’ll guide you through every step of the process. Your Firm’s Main Administrator will be assigned a dedicated Account Manager who will manage the setup timeline, communicate when it’s time to move on to the next step of the process, and let you know when requirements are satisfied.

Firm completes and submits all four required sections of the Investment Firm Establishment Guide.

We receive and review Guide.

We set up your Firm in our system.

Firm’s Main Administrator receives Advisor registration details via email.

Firm shares registration details with Advisors.

Advisors register and gain access to the Advisor Portal.

Advisors pitch their HSA program and identify Plan Sponsors to bring on board.

Our Account Manager requests a kick-off call with Plan Sponsor.

Kick-off call takes place.

Plan Sponsor’s Main Administrator receives registration details via email.

Advisor accesses Plan Sponsor and Participant data in the Advisor Portal and provides ongoing guidance and support as agreed upon.

OPTIONAL: Firm receives quarterly payments via ACH.

We set up the Plan Sponsor in our system.

OPTIONAL: Advisor requests a new fund line up for a specific Plan Sponsor.

OPTIONAL: We create the fund line up and assign it to Firm.

Advisor prompts us to send Plan Establishment Guide to Plan Sponsor contact.

Plan Sponsor completes and submits Guide to HSA xChange.




B D

Firm requests an Investment Firm Establishment Guide.

Plan Sponsor enrolls Participants.

Participants accounts are funded.

Advisor receives email notification that Participants’ HSA has been funded and is now viewable in Advisor Portal.

A

B DCA

A

E F



All four completed sections must be received before process can continue.

CB

3-5 business days, depending on fund choices


1-2 business days to send to Plan Sponsor

1-2 business days after kick-off call

Up to 3 business days after kick-off call, plus 7-10 business days before contributions can be made

Up to 3 business days after enrollment, as long as the account is funded

CB

A

BA

C

G

A

D


mailto:service%40HSA-xChange.com?subject=




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Here are some things you’ll need to line up before completing the Investment Firm Establishment Guide:

Primary Advisor

This should be someone who will be actively promoting your HSA program, using the HSA xChange Advisor Portal, and who is willing to communicate program changes to other advisors Firm-wide.

Main Administrator

This should be someone who is authorized to make changes to the Investment Firm’s profile. It may be the same as the Primary Advisor.

Marketing Contact

This should be someone who can provide an official Firm description and logo, and who can answer questions about the Firm’s brand. It may be the same as the Primary Advisor.

Logo

The Investment Firm/Agency’s logo is required and must be formatted per the following specs: Max Size: 200 pixels width x 80 pixels height File Type: JPG or PNG preferred

File Naming Convention: investmentFirmname_logo_widthpx_x_heightpx

Corporate Overview

The corporate overview is required and will appear in your clients’ online portals to provide information about your Investment Firm/Agency’s HSA. (Up to 8,000 characters.)

Master Product

Follow the instructions on the Fund Line Up Request Form to create your Firm’s Master Product. In setting up your Master Product, determine a line up that will meet most clients’ needs—both individual wealth management clients and Plan Sponsors. Keep in mind, your Firm can create an additional fund line up for a specific Plan Sponsor at any time in the future by filling out the Fund Line Up Request Form again. Please note that the requested funds must be traded via Matrix/Broadridge. If there are no issues with the funds, a custom fund line up can take 5–15 days to set up.

Master Product Payment Preferences (Optional)

If your Firm chooses to collect payment on your Master Product through our system, what asset-based advisory wrap fee does your Firm wish to collect on each Participant? This fee would be charged against Participants’ investment accounts quarterly and would be calculated using the average daily balance. Fees are withdrawn proportionally across the account. If you choose to create a custom fund line up in the future for a specific Plan Sponsor, you’ll also have the opportunity to choose the fee associated with that product at that time.

Bank Information (Optional)

If your Firm chooses to receive payment on your Master Product or anticipates collecting payment on any future product, fill out the Payment Information Form with your Firm’s banking information. Payment is made to the Firm quarterly via ACH.

TIMELINE TIP: After we receive your completed forms, we’ll begin the set-up process. Again, we cannot begin until every form has been completed and returned. Please note that Custom Fund Line Ups will take 5-15 business days, assuming funds are ready to be traded via Matrix/Broadridge and there are no required minimums or other restrictions.



1

A. As soon as your Firm is set up in our system, your Main Administrator will receive a secure email with a special, Firm-specific username and password that your Advisors can use to complete online registration.

B. Share that registration information with Advisors so they may register their individual accounts. Each Advisor will need their unique login. The process of registration take approximately 10 minutes.

C. After logging in, your Advisors will register themselves and create their own usernames and passwords. They should use their personal usernames and passwords to log into the Advisor Portal in the future. Upon registering, Advisors will receive an email confirming they’ve gained access to the HSA xChange Advisor Portal. Remember, Advisors will not see Plan Sponsor or Participant data in the Advisor Portal until clients (Plan Sponsor’s Participants) have signed up and funded their HSAs.

D. Your Advisors can now go pitch their HSA program! (See Chapters 1 and 2 for tips and tricks.)

D

C

B

A


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After your Investment Firm has been set up, it’s time to register your Advisors. By registering, Advisors will establish a connection to your Firm in our system and also gain access to the Advisor Portal.





















B D





A

B DCA

A

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CB







CB

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D

WHICH ADVISORS SHOULD REGISTER?

While not mandatory that all of your Advisors register, we recommend those interested in the HSA product register and become familiar with the options available. This significantly speeds up enrollment of Plan Sponsors at open enrollment time. It also keeps Advisors looped into any HSA news and regulatory changes.

Video

The Advisor Portal: How to Create Your Advisor Login

bit.ly/AdvisorPortal >

Link is case sensitive


https://www.youtube.com/watch?v=h7MeZJvZcdQ

https://www.youtube.com/watch?v=h7MeZJvZcdQ


A. The Advisor will fill out a Fund Line Up Request Form and submit it to your Firm’s dedicated Account Manager before getting the Plan Sponsor registered in our system. Keep in mind, custom fund line ups can take 5–15 days to set up, depending on whether there are any issues with the requested funds (e.g. they’re closed, ineligible, etc.). The Advisor can opt to use the Firm’s Master Product for a Plan Sponsor, if desired. In that case, this step may be skipped.

B. Next, the Advisor will reach out to your Firm’s Account Manager and ask them to send a pre-filled Plan Establishment Guide—including the fund

A

Once an Advisor has identified Plan Sponsors that are good candidates for your HSA program, it’s time to get those clients registered in our system.





















B D





A

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E F




CB







CB

A

BA

C

G

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D

line up name, fees (if applicable), and whether the Advisor wishes to participate in the kick-off call—to the Plan Sponsor contact. This Guide provides detailed information regarding the plan set up process and how we help onboard Plan Sponsors.

C. The Plan Sponsor will fill out the Guide and submit it to HSA xChange. We will let the Advisor know when we receive a Plan Establishment Guide from one of their Plan Sponsors.

C

B


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D. The Plan Sponsor’s dedicated Account Manager will then reach out to schedule a kick-off call with the Plan Sponsor.

E. This call focuses on implementation details, including: • Reviewing information submitted on the Plan Establishment Guide and filling in any gaps • Enrollment options and procedures • The federally required Customer Identification Program (U.S. Patriot Act) • Options for funding Participants’ accounts • Gaining access to the HSA xChange Employer Portal

• The accountholder experience • Transfers from prior custodian (if applicable) • HSA education and resources

F. After the kick-off call, the Plan Sponsor’s Account Manager will send a secure email to the Plan Sponsor Main Administrator, granting them access to the Employer Portal, and then continue to walk the Administrator through the enrollment process.

G. Following the kick-off call, the Plan Sponsor’s Account Manager will set the group up in our system. This can take up to 3 business days, and contributions can then be made to the accounts within 7–10 business days.

G

FE

D


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B D





A

B DCA

A

E F




CB







CB

A

BA

C

G

A

D

Brochure

Employer User Guide

HSA-xChange.com/group-admin-user-guide

HealthSavings.com [email protected] Toll-free: (888) 354-0697

Employer User Guide

TABLE OF CONTENTS

Logging In

Funding

Via file upload Via direct entry

Accessing Reports

Employer Options

TIMELINE TIP: Keep in mind that we move at the pace of the Plan Sponsor throughout this step. It may take time for the Plan Sponsor to set a date for the kick-off call, or the Plan Sponsor may need to first establish an HSA-qualified health plan before establishing the HSA.





















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A

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CB







CB

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http://HSA-xChange.com/group-admin-user-guide

http://HSA-xChange.com/group-admin-user-guide

HSA-xChange.com/group-admin-user-guide



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A. The Plan Sponsor has the option of submitting a file with Participants’ details or directing employees to enroll online. During this step, the Plan Sponsor enrolls Participants via its chosen method.

B. Once Participants are enrolled, they or the Plan Sponsor will make an initial contribution.

C. The Advisor will receive an email when a Participant’s account has been funded—at which point the Advisor will be able to view that Participant’s data in the Advisor Portal.

A C

B

Now that your Firm, Advisors, and Plan Sponsors are registered, it’s time to enroll Participants.





















B D





A

B DCA

A

E F




CB







CB

A

BA

C

G

A

D

TIMELINE TIP: This part of the process may also take extra time. Why?

Depending on the enrollment method the Plan Sponsor chooses, it can take that Plan Sponsor time to collect all of the details necessary to enroll Participants or, alternatively, to communicate enrollment details to Participants and ensure they follow through.

The U.S. Patriot Act requires all HSA administrators to participate in a Customer Identification Program. Confirming identities can be time consuming, especially if a Participant’s initially provided contact details cannot be reconciled and the Participant needs to mail in additional identification details. This might happen if a Participant recently changed their name or moved, for example.

There is sometimes a gap between when a Participant is fully enrolled and when they (or their employer) fund their account. Remember, the Advisor cannot view any Participant data until the account is funded.



Receiving Payment (Optional) If applicable, payment is made to the Firm quarterly via ACH, and will include information about accounts from which the revenue was generated.

At the Plan Sponsor level, Advisors will be able to view the total assets and the products (fund lineup) for each plan. They will see each of their Plan Sponsors listed on the home screen. Clicking on the “plus” sign at the left will allow Advisors to expand the plan details and view assets by fund or model portfolio.

They can also expand the Plan to view a list of Participants. By clicking on an individual Participant, Advisors will have access to that Participant’s investment profile. This allows the Advisor to view the:

• Investment overview • Sources of contributions • Transaction amounts • Investment allocation for new contributions

Limited Trading Authority Participants may allow Advisors limited trading authority on their account. If an Advisor has been granted that permission, they will have the ability to transfer between funds, reallocate future contributions, and rebalance the account.

BA





















B D





A

B DCA

A

E F




CB







CB

A

BA

C

G

A

D

Video

The Advisor Portal: Where to View Plan & Participant Data

bit.ly/AdvisorPortalViewPlan >

Link is case sensitive


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https://www.youtube.com/watch?v=_I9bC1C9-e8

https://www.youtube.com/watch?v=_I9bC1C9-e8



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Transfer Existing HSAs to HSA xChangeIt’s possible a Plan Sponsor may want to convert from their current HSA to your HSA program. The IRS allows taxpayers to have multiple HSAs, which means a Participant’s new HSA can be open and funded prior to the transfer, minimizing any blackout period where no funds are available.

Transfers and rollovers have very specific meanings in the HSA industry. Generally, you would not use a rollover to move from one custodian to another.

Rollovers (rare)

• A rollover is done when the custodian sends a check or ACH to the Participant, who deposits that check into a second HSA.

• The Participant must complete the transaction within 60 days of receiving the disbursement from the first custodian. Failure to do so results in the disbursement being taxable if it was not offset by eligible medical expenses.

• Participants can only do one rollover per year.

• Participants must report the rollover on their tax return.

Transfers (common for individuals)

• Participants may have multiple transfers within any given tax year.

• Transfers always involve a direct custodian-to-custodian movement of money.

• Transfers require no tax reporting on the part of the Participant or the custodian.

• Most transfers are done individually. They require a paper form from the Participant and result in a paper check being sent to the new custodian.

• Generally, transfers take 2–6 weeks to allow the old account to settle any outstanding debits.

Bulk Transfers at the Plan Level (common for groups)

• In cases where all or a majority of Participants are changing custodians, it is often possible to complete a bulk transfer of assets. While each Participant must indicate on paper their willingness to move to the new HSA, the transfer of funds is scheduled and done electronically.

• The HSA xChange team will oversee this process for the Advisor.

Bulk Transfer Steps

• The Plan Sponsor’s Account Manager will provide Administrators with the Transfer Request documents needed to complete the bulk transfer. Each Participant transferring funds will need to sign the provided form.

• The Plan Sponsor’s Account Manager will ask the Plan Sponsor Administrator for contact information for the previous HSA custodian.

• Once all Participants are enrolled, the Account Manager will contact the previous HSA custodian to initiate the transfer.

• The Account Manager will send all signed transfer request documents to the previous HSA custodian in bulk via certified mail.

• If the previous custodian allows it, the transfer can be processed via wire, in which case the Participants will receive their money into their new HSA account in 2 – 3 weeks. If not, the previous HSA custodian will mail a check, in which case the Participants will receive their money into their new HSA account in 4 – 6 weeks. This time period is dictated in large part by the surrendering custodian. Some custodians delay the process more than others. Pressure coming from the employer can often get them to move more quickly. The Account Manager will assist with this process.




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Enroll Individual Wealth Management ClientsFor individual Participants who are not affiliated with Plan Sponsors, we can create an Individual Investor HSA for your Investment Firm. After your Firm is set up, we will provide you with a special enrollment username and password that can be distributed to individual Participants so that they can enroll in your Firm’s HSA online.

After log in, individual Participants will begin the enrollment process and create their own username and password. They will use their personal username and password to log into the Member Portal in the future.

During online enrollment, individual Participants will have the opportunity to make investment elections. We recommend that the Advisors work with these

Participants to advise on their investments prior to enrollment; however, investment elections can be added or changed after enrollment as well.

Lastly, Advisors wishing to gain access to individual Participant accounts and/or to collect Advisor fees on these accounts will need Participants to complete and submit an Appointment of Financial Professional Form, located at HSA-xChange.com/Forms.

Advisors will not be able to view their individual Participants through the Advisor Portal until we have received the Participant’s completed Appointment of Financial Professional Form and the Participant has made their first HSA contribution or transfer/rollover into the HSA.


http://HSA-xChange.com/Forms

http://HSA-xChange.com/Forms


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Beyond Implementation

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Even beyond implementation, continue to lean on us for support as you:

• Nurture Plan Sponsor clients, encouraging them to sign on new participants during open enrollment and throughout the year.

• Answer Plan Sponsor and Participants’ HSA-related questions.

• Continue to pitch your HSA program to potential new Plan Sponsor clients.

Beyond ImplementationOnce Plan Sponsors and registered Participants are enrolled, we work to keep them informed so that you don’t have to. They receive:

• Notifications as changes occur to their accounts

• Regular statements

• Alerts when there are enhancements to our Portals

• Tax forms and information on what to do with them

• Tips and tricks on how to maximize their HSA

And you can always contact your dedicated Account Manager or email [email protected] anytime for support. And be sure to visit HSA-xChange.com for resources, including

• Call Center contact information

• Brochures, videos, and infographics

• And much more


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http://HSA-xChange.com

A GUIDE TO Implementing Your HSA Program€¦ · hsa-works-infographic F TAX-DEDUCTIBLE F...

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