Reference Guide. What Exactly Is A Health Savings Account?. A Primer for Your Plan. First, some terminology: PPO – Preferred Provider Organization. In other words, your network Non-PPO – Those providers who are NOT in your network
A Primer for Your Plan First, some terminology: PPO – Preferred Provider Organization. In other words, your network Non-PPO – Those providers who are NOT in your network Coinsurance – The point at which insurance starts to pay. You have met your deductible, now insurance will pay this next percentage Deductible – The amount you have to pay before co-insurance comes into play
An HSA is: A tax preferred bank account (usually checking) – this means that you put money in tax free. The account is available to you with the accompanying Qualified High Deductible Health Plan You earn interest tax free Monies spent or “distributed” stay tax free as long as they are used for medical expenses (RXs, dental, vision, deductibles) for you OR your dependents. Note: They don’t even have to be on your insurance!
Who can have an HSA?An individual who is: Currently enrolled in a CDHP (HDHP) Not enrolled in and using Medicare** Not claimed as a dependent on someone else’s taxes Not covered by other medical insurance (exceptions are worker’s comp., separate dental, vision, etc.) **Please consult www.ustreas.gov for further details
2013 contribution limits… For Individuals, the limit is $3250 For Families, the limit is $6,400 Catch up is staying the same at $1000 per eligible individual* *Spouses must have a separate account, but once established funds can co-mingle; a spouse does not have to be on your plan to make this contribution
Tax advantages for a person with an HSA: Money can be contributed pre-tax through payroll, in addition to employer contributions Balances accumulate tax free interest Dollars stay tax-free if spent on qualified medical expenses (dental and vision too) Post-tax deposits (deposits not made through payroll) are tax deductible Contributions can be posted up until April 15 for previous-year’s deductibility Payroll deductions CAN BE CHANGED NO USE IT OR LOSE IT
What you get: A FREE debit card for you, another optional free card for you spouse The ability to order checks from Blackhawk (Deluxe) OR from another source of your choice FREE online banking and bill-pay services, that you control A dedicated team of HSA professionals at Blackhawk Bank (who have had their own HSAs since January of 2005) waiting to assist you
Walking through the process - a trip to the doctor: You arrive at the doctor’s office and check in. With your consumer driven plan, there is no co-pay You do not pay for the visit on the spot, because… After your visit, the doctor’s office submits the visit for adjudication to the insurance company who in turn discounts it, applies the cost to your deductible, and replies to the doctor’s office with the “final amount owed” The insurance company lets you know all of this in the form of your EOB (Explanation of Benefits) that they send you in the mail approximately 10 days after your visit
Visit to the doctor, continued… You then receive the final bill from the doctor’s office itself, which reflects the discount and final amount due Depending on the speed with which communication happens, you will not see the final bill for around 2 weeks You now decide how to pay. Will you use HSA dollars? It’s up to you! Remember, USE IT OR KEEP IT – you choose.
Prescriptions: ALWAYS ask questions about the drugs you are prescribed. inquire about a generic option, ask about interactions, and how much a “new” drug (versus what you’ve always taken) costs! You are the consumer, and this is a conversation worth having! Oftentimes, a generic is available. If not, the drug might just be on the list that Wal Mart or Walgreens carries for $4. You choose whether or not to pay at the pharmacy with HSA dollars, with your household account, or by other means. No matter how you pay, this amount now comes off your deductible, and you receive an EOB reflecting the purchase within a week or so of getting the perscription.
What other payment options are there besides my HSA debit card and checks? Option 1: Your Blackhawk HSA comes equipped with online bill pay, which enables you to send a paper check or ACH funds to the provider by going to our convenient and FREE online bill pay feature and requesting this service Option 2: Your HSA ATM Debit card can be used anytime to withdraw cash. The first 4 (four) ATM transactions per month are fee free from us, and then there is a nominal fee for transactions beyond this number. NOTE – we cannot control any fees imposed by the ATM you use. Other banks might charge a fee on their end.
Let’s Talk Rates and fees… No fee to open your account No annual maintenance fees No per usage fees After year one, if balance falls below $1500 in any statement cycle, a fee of $2.50 is assessed for that statement cycle only. What does this really mean? It means that for that month you will pay .8 cents a day. The maximum you would ever pay is $30 over the course of the year
What if I havequestions? Call us! We here at Blackhawk make serving our customers the first priority. We want your feedback, and will do our utmost to meet your needs and exceed your expectations. Tena Reavis (800) 209-2616 ext 4243 Paula Colling (800) 209-2616 ext 4208 Or by cell @ (608) 289-1898
Thank you very much for you trust, and for your business