Health Savings Account (HSA) Information

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Health Savings Account (HSA) Information

2 simplify | motivate | execute© 2010 ConnectYourCare All Rights Reserved.

Who We Are

ConnectYourCare is your healthcare account administrator. • Online account access• Health education tools• Healthcare payment card• Easy access to funds


Online CDH Portal

24 x 7 real-time access to:• Obtain real-time account

balances• Check transaction history on

accounts – contributions and disbursements

• Submit online request for reimbursement, check claim status, and view reimbursement schedule

• Add/update personal and direct deposit information

• Access a variety of health education and wellness tools


Health Education Tools

A variety of WebMD tools are available in the online portal.• WebMD Hospital AdvisorSM— Hospital information and rankings for specific

procedures• WebMD Medication AdvisorSM— Information on less expensive prescription

options• WebMD Treatment Cost AdvisorSM— Cost estimates on 350 of the most common

medical conditions, tests, and procedures• WebMD Health TopicsSM— A to Z medical encyclopedia listing of over 1,500

ailments with information, treatment options, prevention, and more• WebMD HealthQuotientSM— State-of-the-art

assessment tool that scores participants’ health status, calculates risk levels, and provides recommendations for health improvement and behavior change

• Symptom Checker — Information about what medical symptoms could indicate and helpful facts before a doctor’s visit


Accessing Account Funds

Healthcare Payment Card• Use it at healthcare locations where Visa

is accepted• Use it for qualified healthcare items• Automatically records purchase online• Money comes directly out of your

account• No need to pay upfront and wait for

reimbursement • Cannot be used at ATMs• Multiple ConnectYourCare accounts are

accessible with the same card (if offered by your employer)


Reimbursement Requests

• Pay out of pocket for a qualified expense

• Enter your claim online• View claim status online at

any time• Receive reimbursement • Set up direct deposit for even

quicker reimbursements


Saving Receipts

• Name of the patient• Date the service was provided • Name of the service provider • Description of the service • Amount/cost of the item or service

provided

Always save your itemized receipts!


Best-in-class service to participant through multiple channels• Robust Online Portal (24 x 7)

– Real-time account balances– Transaction history

• Interactive Voice Response (24 x 7)– Account information– User name reminder or password reset

• E-mail– Interactive communication method– Limited to basic operations, not used for personal health information

(PHI)• Live Customer Assistance

– Detailed questions or personal assistance– Trained in adjudication and call assistance

Customer Service Available at All Times


What is a Health Savings Account (HSA)?

A HSA is like a 401(k) for healthcare. HSAs are tax-advantaged accounts that accumulate interest and can earn investment returns. The funds can be used to pay for qualified medical expenses today or can be saved for future expenses.

Account Advantages• Triple tax savings• Interest and investments• Multiple uses• Easy to access • Portable – it stays with you when

you leave your company or retire

Unlike traditional insurance where you only benefit if you use it, with an HSA, you can spend your HSA on today’s expenses, or save and invest your HSA funds for future

expenses or for retirement!


Who is eligible for an HSA?

Any individual or employee can open and make contributions to an HSA, if they meet all of the following requirements:

• covered by a qualified HDHP • not covered by other health insurance• not enrolled in Medicare• can’t be claimed as a dependent on

someone else’s tax return– Children cannot establish their own HSAs– Spouses can establish their own HSAs, if eligible

No income limits on who may contribute to an HSANo requirement of having earned income or being employed


HSA Contribution Limits

Maximum Annual Contributions for 2010 and 2011• Individual: $3,050• Family: $6,150

For individuals age 55 and older, additional “catch-up” contributions allowed

• $1,000 – 2010 and 2011


HSA Distributions

Distributions allowed at any time without restrictionDistribution is tax-free if taken for “qualified medical expenses” incurred by one of the following after HSA was established:

• the account holder• spouse of the account holder• any dependent of the account holder

– even if not covered by the HDHP

Qualified medical expense must be incurred on or after the HSA was established

• If HDHP coverage effective on first day of month, HSA can be established as early as first day of same month

• If HDHP coverage effective any day other than first day of month, HSA cannot be established until first day of following month


Examples of Qualified Medical Expenses

• Acupuncture• Alcoholism treatment• Ambulance• Automobile modifications for

physically handicapped• Birth control pills• Braille books & magazines • Chiropractic care• Christian Science practitioner• Contact lenses & related materials• COBRA premiums• Crutches• Dental treatment• Dentures• Diagnostic services• Drug addiction treatment• Eye examination • Eye glasses• Fertility treatment• Flu shot

• Guide dog or other animal aide

• Hearing aids• Hospital services• Immunization• Insulin• Laboratory fees• Laser eye surgery• Long-term care premiums

or expenses• Medical testing device• Nursing services• Organ transplant• Orthodontia• Over-the-counter

medications• Physical exam• Physical therapy• Prescription drugs

• Psychiatric care• Retiree medical insurance

premiums• Smoking cessation program• Surgery• Transportation for medical

care• Weight loss program to treat

obesity• Wheelchair


Examples of Qualified OTC Expenses

Eligible Items• Acne medications• Anesthetic mouth gels & rinses• Anti-itch creams• Antiseptics• Bandages and dressings• Contact lens solutions • Eye drops• Eye patches• Prenatal vitamins• Reading glasses• Smoking cessation products• Sunburn creams/sun block• Wart and corn removers

Eligible only with a prescription*• Allergy prevention/treatments• Antacids and acid reducers• Cold and flu medicines• Cold sore remedies• Decongestants• Oral pain relievers • Orthopedic shoe inserts• Pain and fever relievers• Sinus medications• Snoring cessation aids• Vitamins, herbal and fiber supplements• Weight loss and dietary supplements

Some over-the-counter treatments are eligible for purchase with HSA funds. Other items require a prescription. This list is subject to change. Please see www.connectyourcare.com/otc for updated information.

* A “prescription” means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.


Examples of Not Qualified Expenses

• Cosmetic surgery• Cosmetics• Denture supplies• Deodorant• Exercise equipment• Fitness programs• Funeral expenses• Hair transplants• Household help• Illegal operations and

treatments

• Insurance premiums• Maternity clothes• Moisturizers and wrinkle creams• Teeth whitening, teeth whitening

products• Toothpaste, toothbrushes and

mouth wash• Sun tan lotions (w/o sun block)• Vitamins


HSA Interest & Investment Options

Interest Bearing Account• FDIC insured• Tiered variable rate – see www.connectyourcare.com/hsainterest

for today’s rateInvestment Options

• Money Market Option– $1,000 peg balance required– Sweep-based product

• Brokerage Investment Option**– $1,000 peg balance required; funds have minimum investment levels–Online investment, trade and balance reporting–Wide range of investment choices with nationally recognized fund

families**Mutual funds are NOT FDHIC insured. Additional trading and brokerage fees apply


Frequently Asked Questions

How much can I contribute to my HSA?• For 2010 and 2011, you can contribute up to $3,050 for individual

coverage and $6,150 for family coverage.• Individuals ages 55 or older can make additional "catch-up" contributions

of up to $1,000 per person in 2010 and 2011.

How will I be able to access my account funds? • You will receive a healthcare payment card to access your HSA funds. You

can also pay for eligible expenses with any other form of payment and request reimbursement from your account.

When can I request reimbursement from my account?• You have access to the account when your plan becomes effective.

Health Savings Account (HSA) Information

Documents

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