Presentation Transcript

1. Your Health. Your Money. Your Choices.High Deductible Health Plan, HSA, VEBA & FSA

   Minnesota Service Cooperative
2. HSA Overview What is a Health Savings Account (HSA)? Financial account that is owned by an individual. Associated with a High Deductible Health Plan (HDHP) Contributions to the account are to pay for current and future medical expenses No “use it or lose it”, unused funds rollover Interest earned is tax free Investment opportunities Portable Beneficiary can be named to account Post age 65 non-medical distributions without penalty
3. HSA Employee Advantages Control over the account Ability to contribute tax free $ to HSA account (2014: single $3,300, family $6,550) Rollover provides opportunity to save for future health care expenses Tax-exempt withdrawals for qualified medical expenses not covered by the health plan Interest and earnings grow tax free w/ investment opportunities Portability Post 65 non-medical withdraws This is the employee’s account and the entire balance belongs to the employee, regardless of your present or future employment and/or who deposited the funds.
4. VEBA Overview What is a VEBA Account? Financial account that is held in the employee’s name. Contributions to the account are to pay for current and future medical expenses No “use it or lose it” - unused funds rollover Interest earned is tax free Investment opportunities No beneficiary can be named to the account Employer only contributions
5. VEBA Overview Who is eligible to enroll and contribute to a VEBA? Enrollment: Any individual employee that: Enrolls in the VEBA option medical plan No conflict being covered by any other health insurance (including FSA) – VEBA accounts coordinate with other benefits Contributions: Employer Only – No Employee Contributions
6. VEBA Employee Advantages Control over your account for qualified distributions Rollover provides opportunity to save for future health care expenses Tax-exempt withdrawals for qualified medical expenses not covered by the health plan Interest and earnings grow tax free with investment opportunities Spend down – post employment VEBA $ can be used to pay medical premiums (post employment)
7. VEBA / HSA Product Review
8. VEBA / HSA Product Review
9. VEBA / HSA Product Review
10. What happens to my VEBA account if I move to the HSA plan? Active VEBA accounts make employees not eligible to contribute to the HSA account VEBA account will be limited to Dental and Vision claims only if you choose the HSA option Dental and vision claims are also eligible expenses from the HSA VEBA accounts can be completely frozen at the individual employee’s request, thus making the VEBA not eligible to pay dental and vision (complete VEBA stop form) Once you are no longer eligible to contribute to the HSA, the VEBA can be opened up to all IRS 231D expenses giving you the option of which account pays which eligible expenses.
11. Account Funding Strategy Use the preventive care portion of your plan Minute clinic or retail clinics Use 911 if necessary – If not a life or death situation, evaluate ER needs Use Generics Inform your doctor/provider that you are on a HDHP Shop for medical value – compare charges
12. Flexible Spending Account Flex limits for Medical $2,500 Full election available on 1st day of plan Pre tax savings Use it or lose it – make your election carefully Crossover - Automatic claims reimbursement with POS VEBA – FSA is very complementary HSA must have a limited FSA (dental & vision only)
13. Flexible Spending Account Administration Dependent Care $5,000 limit Election available as withheld from payroll Children and adult daycare expenses eligible Pre tax savings Use it or lose it Separate election from Medical FSA