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Health Savings Accounts

Health Savings Accounts. Blue Cross Blue Shield Seneca Falls Savings Bank Auxiliary Services Corporation. It is all about the money . $306 - $1,533 in your paycheck from savings on your health insurance premiums $1,300- $2,600 placed in your Health Savings Account by ASC.

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Health Savings Accounts

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  1. Health Savings Accounts Blue Cross Blue Shield Seneca Falls Savings Bank Auxiliary Services Corporation

  2. It is all about the money • $306 - $1,533 in your paycheck from savings on your health insurance premiums • $1,300- $2,600 placed in your Health Savings Account by ASC

  3. Health Savings Accounts and Tax Savings IRS allows only qualified individuals and families to have Health Savings Account May only be covered by a high deductible plan • Not eligible if you have Medicare or other health insurance • Not eligible is you have received veterans benefits in the last 3 month Health Savings Account- High Deductible Plan only = + Qualified

  4. High Deductible Plan – Blue Cross Blue Shield Preventative Care member pays $0 Deductible $1300/$2600 Member pays Health Savings Account $1300/$2600 Co-insurance Coverage, Member pays ... 20% Medical Services 10% Generic Drugs (Tier 1) 40% lower cost Brand Drugs (Tier 2) 50% higher cost Brand Drugs (Tier 3) After additional $1,700/$3,400 out of pocket member pays $0

  5. High Deductible Plan (HDP) • 12-month commitment • Same PPO Network with Blue Card • May have Dental Vision Coverage that pays before the HDP • May only have a limited use Flexible Spending Plan (dental, vision, OTC)

  6. Health Savings Accounts and Tax Savings • IRS allows • Qualified individuals and families • Contributions are tax free • Any earnings on the contributions are tax free • Withdrawals for a Qualified Medical Expense (QME) is tax free (Triple Tax Free) • Withdrawals for non-QME pay income tax plus a 20% penalty (IRA/401K rules) • Penalty waived after age 65

  7. Taxability $Contributions$ Tax Free + $Earnings$ Tax Free $QME$ No tax Under 65 Any expense Taxable +20% Over 65 Any expense taxable

  8. Contribution Limits by IRS • Contributions limited to the deductible • Employee and Employer contributions • except those over age 55 (additional $1000 in 2011, ASC will allow for pretax payroll deduction for those over age 55 using the catch up provision)

  9. Funding the HSA • ASC will contribute for the foreseeable future the deductible at $1300/$2600 • Total after 5 years $6500/$13000

  10. ASC funding the deductible • Deductible payments will be placed quarterly into each employee’s account • The money belongs to the employee when it is placed in the account • Portable – Take it with you when you leave • Rolls over from year to year • Account $ may be used in the future with a non-high deductible plan, but no future contributions can be made

  11. Health Savings Account • Actual bank account • Responsible for tracking that $ were spent on QME • $15 one-time account start up fee – paid by ASC • $2 per month checking account fee until the account reaches $3,000 • Rate of return • $.01- $1,999.99 1.96% • $2,000 – $9,999.99 2.46% • $10,000 or more 3.63%

  12. Health Savings Account • Check fees • Free debit card (Master Card logo) • Monthly statement • Must have a valid picture ID with a signature • Online banking

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