Discover HSAs

05/27/2014Sean Whinnery – Account Executive

Greg Cieslewicz – Communications Specialist

Are HSAs right for you?

What is an HSA?

An HSA Defined• Health Savings Account• Requires a qualifying high deductible

health plan• Funds in an HSA can pay for qualified

medical expenses (as outlined by the IRS)

**HSA funds can be withdrawn to pay for non-medical expenses at a penalty

• $1,250 Single Deductible / $2,500 Family Deductible

• $6,350 Single Out-of-Pocket Maximum / $12,700 Family Out-of-Pocket Maximum

What plans qualify for an HSA?

Why would someone want an

HSA?

HSA Advantages

Employer and Employee can

contribute tax free

High level of healthcare

consumerism

Employees can contribute their

own money

HSA Disadvantages

Employer contributed money

belongs to the employee

Less employer control than an

HRA

Employer cannot determine what expenses qualify

How does funding work with an HSA?

HSA Funding• Employer can choose whether or not to

fund.• Employees can contribute • Contribution limit set by federal law• Contribution limits are shared by employee

and employer

HSA Funding• Funding Options:

– One-time seed money– Matching contributions – Quarterly, monthly, or other repeating

contribution

What else should people remember

about HSAs?

Other HSA Questions• Will the employer provide seed money or

fund the HSA in some fashion?• Will the employer set up a banking

relationship for their employees?• Will the employer set up automatic

paycheck deductions for employees who want them?

• Will the employer use an employee education program to help their employees understand HSAs?

Questions?