• No results found

YOUR CIGNA CHOICE FUND HEALTH SAVINGS ACCOUNT. A health plan plus a health savings account.

N/A
N/A
Protected

Academic year: 2021

Share "YOUR CIGNA CHOICE FUND HEALTH SAVINGS ACCOUNT. A health plan plus a health savings account."

Copied!
25
0
0

Loading.... (view fulltext now)

Full text

(1)

YOUR CIGNA

CHOICE FUND

®

HEALTH SAVINGS

ACCOUNT

(2)

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

Basic Principles

What if we bought groceries the

way we buy health care?

– Pay $10 at the door

– No price tags on shelves

– How does our behavior

change?

(3)

3

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

Healthcare Consumerism is about transforming a health benefit plan into

one that puts economic purchasing power – and decision-making – in

the hands of participants.

It’s about providing the information and decision support tools they

need, along with financial incentives, rewards and other benefits and

tools which encourage personal involvement in altering health and

health care purchasing behaviors.

Must work for the sick as well as for the healthy and for those who are

technically savvy and those who are not.

(4)

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna

WHAT IS A HEALTH SAVINGS ACCOUNT (HSA) PLAN?

A health plan that provides coverage for qualified medical/pharmacy expenses and

allows you the option to save HSA dollars on a tax advantaged basis.

Your employer contributes and you can too through payroll deduction!

The total 2016 annual contribution limit for employee + employer is:

- $3,350 Single Coverage

- $6,750 Family Coverage

Employee and employer money deposited into the HSA is generally not taxable

Age 55 or older - Maximum contribution increases by $1,000 (considered a “catch-up”

(5)

Plan Design Samples

5

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

(6)

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna

AM I ELIGIBLE TO PARTICIPATE IN AN HSA PLAN?

Because HSA plans have special tax advantages, the IRS defines specific rules

for participation. To be eligible, you:

– Must be enrolled in an IRS-qualified high-deductible medical plan (high-deductible

medical plans sold with Cigna’s Choice Fund HSA meet IRS requirements)

– Cannot have any other health coverage

– Not covered by spouse’s medical or pharmacy plan

– Not covered through Medicare Part A or Part B, Part D, or through TRICARE

– Not covered through a general-purpose Flexible Spending Account (FSA) plan

(either employer’s or spouse’s)

(7)
(8)

TRIPLE TAX ADVANTAGES OF AN HSA

Payroll deduction contributions are pre-tax*

After-tax contributions can be deducted when you file your tax return

Interest earned on your cash account is generally not taxable*

Investment earnings on mutual funds are generally not taxable*

Withdrawals to pay qualified health care expenses are tax-free

Withdrawals for ineligible expenses are taxed and you pay a 20% penalty

At age 65, withdraw funds for any reason with no penalty (taxes do apply)

Contributions

HSA Account

Growth

Withdrawals

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

(9)

9

SAVING FOR THE FUTURE

100% Rollover of

HSA dollars year

over year

Portable – take it

with you

Use HSA dollars

to pay premiums

for:

COBRA

Long-Term Care

Medicare

You choose how and when to use your HSA

Use as Income

During Retirement

(10)

Investment options

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

• $2,000 minimum in HSA to invest.

• Once the investment account is open, no

minimum balance applies

• No minimum deposit for any fund

• Tax-free growth of interest or

investment earnings

• No monthly fees apply

(11)

11

HOW ARE MEDICAL CLAIMS PAID?

11

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

11

Cigna provides an Explanation of Benefits or EOB

(“receipt”) showing:

Doctor’s charge, Cigna discount, amount billed, (amount

deducted from the HSA if elected), amount paid to

doctor/facility and remaining HSA balance (if medical

automatically claim forwarding elected).

Sick visit to an in-network doctor/hospital. Show

your Cigna Choice Fund ID card.

Health Care Professional files claim with Cigna directly.

Cigna receives the claim and processes it based on

the plan deductible, covered expenses and

Cigna-negotiated discounts.

ID Card

(12)

This is an example used for illustrative purposes only.

• Single, in her 50s

• Diabetes; controlling health

through medication

• Looking to save money for future

health expenses

meet Karen

HSA

EMPLOYER

$500

KAREN

$0.00

500.00

+

PLAN

70%

KAREN

30%

+

PLAN

100%

IN-NETWORK PREVENTIVE CARE IS COVERED BY THE PLAN AT 100%

1,948.00

70% plan: 1364.00

30% Karen: 584.00

Deductible: –1500.00

TOTAL EXPENSES

Preventive care

$ 398.00

2 ER visits

2600.00

4 PCP visits

320.00

12 Generic Rx

288.00

3 Brand Rx

240.00

TOTAL

3,846.00

100% covered

–398.00

Karen’s

Deductible

–1500.00

70% plan

–1364.00

30% Karen

–584.00

BALANCE DUE

0.00

-1,584.00

HSA BALANCE

30% Karen: –584.00

(13)

13

This is an example used for illustrative purposes only.

• Married in her 30s

• Pregnant; having a baby

• Looking to save money for future

health expenses

meet Mary

HSA

EMPLOYER

$1000

MARY

$4,000

$5,000.00

+

PLAN

70%

KAREN

30%

+

PLAN

100%

IN-NETWORK PREVENTIVE CARE IS COVERED BY THE PLAN AT 100%

4,313.00

70% plan: 3062.00

30% Mary: 1313.00

Deductible: –3000.00

TOTAL EXPENSES

Check ups

767.00

Global Delivery

4600.00

Physician bill for

delivery

1320.00

Anesthesiologist

688.00

TOTAL

7,375.00

Mary Deductible

–3000.00

70% plan

–3062.00

30% Mary

–1313.00

BALANCE DUE

0.00

687.00

HSA BALANCE

30% Mary: –1313.00

(14)

This is an example used for illustrative purposes only.

• Married in his 40s with a family

• Has the flu; needs to have a visit to the PCP

meet Joe

HSA

EMPLOYER

$1000

JOE

$1,000

2,000.00

+

PLAN

70%

JOE

30%

+

PLAN

100%

IN-NETWORK PREVENTIVE CARE IS COVERED BY THE PLAN AT 100%

0.00

70% plan: 0.00

30% Joe: 0.00

Deductible: –3000.00

TOTAL EXPENSES

Preventive care

252.00

PCP visit

120.00

TOTAL

372.00

Preventive

100%

–252.00

Joe’s Deductible

–120.00

100% taken

from Joe’s ded

120.00

BALANCE DUE

0.00

1880.00

HSA BALANCE

Joe owe : –120.00

(15)

15

This is an example used for illustrative purposes only.

• A dependent child, age 13

• Football injury; that turns in to a broken arm that needs

PT therapy

meet Justin

HSA

EMPLOYER

$1000

JUSTIN

$0.00

1,000.00

+

PLAN

70%

JUSTIN

30%

+

PLAN

100%

IN-NETWORK PREVENTIVE CARE IS COVERED BY THE PLAN AT 100%

700.00

70% plan: 1448.00

30% Justin: 620.00

Deductible: –3000.00

TOTAL EXPENSES

Preventive care

$ 298.00

ER visit

2800.00

4 PCP visits

620.00

7 Specialist

visits

1368.00

3 Brand Rx

280.00

TOTAL

5,366.00

100% covered

–298.00

Justin’s

Deductible

–3000.00

70% plan

–1448.00

30% Justin

–620.00

BALANCE DUE

2,068.00

-2620.00

HSA BALANCE

30% Justin: –620.00

(16)
(17)

What are qualified health care expenses?

17

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

Examples of nonqualified

health care expenses

Examples of qualified

health care expenses*

Qualified health care expenses are determined by the IRS

* This is not a complete list. For a detailed list, visit Cigna.com/expenses or the IRS website at

www.irs.govand see Publications 502 and 969 for additional information.

• Air purifiers

• Cosmetic surgery and related expenses

• Health club dues (unless prescribed by

physician to treat illness)

• Illegal operations and treatments

• Massages for general well-being

• Premiums for health care coverage

• Transportation (unless specifically for and

essential to medical care)

• Toothpaste, cosmetics and toiletries

• Vitamins and nutritional supplements

• Weight loss programs (unless for a

specific illness)

• Deductibles and out-of-pocket costs for

medical and dental care

• Prescriptions

• Vision care, including glasses and LASIK

eye surgery

• Smoking cessation treatment

and prescriptions

• Family planning procedures

• Chiropractic services

(18)

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna

Integrated pre- and

post-enrollment

communications

One website –

myCigna.com

Combined

financial statements

One service center

Personal Health

Advocate for

decision support

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna

myCigna

app &

mobile

access

New!

24/7/365 live service

150 languages

Social Media

Q1 Q2 Q3 Q4

One-of-a-kind Personal

Cost & Quality Estimator

(19)

Managing your HSA on the go

19

19

Manage your

account anytime,

anywhere

Contribution alerts

Contribution posted to your account

☐ Email

☐ Text Message

HSA available cash balance is below $

☐ Email

☐ Text Message

HSA contributions year-to-date are within $ of the IRS maximum

☐ Email

☐ Text Message

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

Choose emails

or text messages –

it’s your choice

Get mobile

or email alerts

from HSA Bank

Sign up for alerts

on the HSA Bank

online banking portal

you access through

myCigna.com

24

7

@

(20)

HSA ACCESS TO FUNDS

Customers choose when and how they access their money

Regardless of how the HSA is accessed, all balance and transaction activity is available online at

myCigna.com

• Cigna will automatically pay eligible medical expenses from your HSA

• This option can be selected at enrollment or any time during the year

• Pay expenses directly from the HSA

• Monitor, manage and schedule payments online, anytime

• Payments can be scheduled on a one-time or recurring basis

• Purchase and write checks to pay for out-of-pocket expenses

• Use the MasterCard-branded debit card to pay for out-of-pocket expenses

• The card can also be used to get cash at ATMs to reimburse yourself for

qualified expenses paid with personal funds

Debit Card

Online Bill Pay &

Electronic Fund

Transfer

Checkbook

Automatic Claim

Forwarding (ACF)

(21)

21

TAX RESPONSIBILITIES AND REPORTING

Employee

Client

Bank

Bank

reporting for year-end taxes will be

sent to the employee (accountholder)

 Form 1099-SA

– Reporting all

distributions from the HSA

 Form 5498-SA

– Reporting of

contributions and transfers into

the HSA

Employee

(accountholder) responsibility

Ensure total contributions do not exceed

allowable maximums

Keep accurate records of contributions

and withdrawals

Maintain receipts for all use of HSA

dollars: purchases and bill payments

 File form 8889

as part of income tax

submission to the IRS

Client

reporting for year-end taxes will be

sent to the employee (accountholder)

 Form W-2:

Reporting all employer

contributions, including pretax payroll

deductions. Employer contributions are

not considered part of your income

(22)

If you need more information

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

• myCigna.com

• Available 24/7/365

• Single sign on to your

HSA information

• Personalized site to learn

about your benefits, track

claims and much more

• 1.800.244.6224

Customer Service

24/7/365

(23)

Educational tools and resources

23

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

Choice Fund HSA Video

• How to use your HSA

HSA Savings Calculator

• Tax Savings

• Future Growth

(24)

WHAT HAPPENS WHEN AN EMPLOYEE LEAVES THE PLAN?

Employer

Send updated eligibility information

to Cigna.

Termination is received by the HSA

system via the eligibility file.

After 15 days, the termination is

released to the bank and they begin

process to convert HSA to an

individual account.

Employee

HSA dollars are portable and theirs to keep.

No longer able to contribute to the HSA

(unless covered through an HSA-qualified

plan and remain eligible).

Can continue using the HSA funds for qualified health care

expenses for their qualified dependents.

Bank begins 30-day process to transition account to a

free-agent account. Employee may have different/additional

account fees.

Receives letter from bank outlining changes to the account

and the options available:

• Transfer the account to a free-agent account with

HSA Bank

• Transfer the funds to an HSA at another institution

• Close the account

If free-agent account is opened, employee will have a direct

relationship with the bank. (The bank cannot provide Cigna

will any information about the account.)

Change in employee status or plan change

(25)

25

Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna

References

Related documents

• Talk with a health advocate for information to help you make decisions about your treatment • Avoid the emergency room for minor injuries – visits to urgent care and retail

A Health Savings Account (HSA) is a tax-advantaged personal savings account designed to provide funds to pay qualified medical expenses, including health insurance deductibles

That’s why the Cigna Choice Fund Health Savings Account puts you in charge of how and when you spend your health plan dollars.. This HSA user guide provides you with information

• A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in an HSA-qualified High Deductible

The Health Savings Account (HSA) enables you to save, invest and spend funds for qualified medical expenses on a tax-advantaged basis. Your funds grow tax-free and unused HSA funds

• A Health Savings Account (HSA) is a tax-advantaged account used in conjunction with an HSA-compatible high-deductible health plan (HDHP).. A plan that is often offered by

• Paired with a qualified HSA-compatible health plan with a savings account for eligible individuals to help pay for qualified medical expenses.. • Unused funds that will roll

The Kitsap Bank Health Savings Account (HSA) provides the means to save and pay for qualified medical, dental, vision and prescription expenses that are incurred after you