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Go to... ARCUS HSA Features HSA Product Details Apply for an HSA Employer Tools Broker Tools Calculators HSA FAQs Contact Us

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Go to... ARCUS HSA Features HSA Product Details Apply for an HSA Employer Tools Broker Tools Calculators HSA FAQs Contact Us

Products for Employers

HSA Information

What is an HSA?

Health Savings Accounts (HSAs) are tax-advantaged savings accounts to which pre-tax or tax deductible funds can be contributed to pay for eligible medical expenses or for longer-term investment purposes.  HSAs must be coupled with an HSA-compatible high deductible health plan (HDHP) in order to make contributions to the account. 

The combination of an HSA and HDHP was created in order to provide consumers with more control over their healthcare spending and lower healthcare costs.  HSAs and HDHPs provide several advantages for consumers and the market as a whole:

• Generally, lower monthly premiums than traditional plans.
• Opportunity for consumers to save and invest pre-tax or tax deductible dollars (similar to a 401k plan).
• Opportunity for consumers to pay for healthcare expenses with pre-tax or tax deductible dollars.
• Lower premiums mean lower fixed costs, providing consumers with greater control over where and how they spend their healthcare dollars.
• Greater incentive to shop carefully for healthcare services

Most importantly, an HSA is owned by the consumer.  If a consumer’s employment changes, the HSA goes with her.  If she migrates to a health plan not compatible with HSAs, her money still remains with her.  The money in her account rolls over every year and can be invested in a diverse set of funds.  There is no “use it or lose it” requirement as there may be with other healthcare spending accounts.

PART 1	PART 2
Intended to cover major medical expenses once the deductible is met.  Includes coverage for preventive care.	Used for: Small medical expenses until deductible is met. Eligible expenses not covered by insurance, (some elective procedures, OTC medications, etc.). Long-term investing.

Features of an HSA

It is the consumer’s money, permanently: 

Consumers own and control the funds in their accounts from day one, deciding when and how to spend them.  There is no “use it or lose it” rule, meaning funds roll over from year to year.  Additionally, the account and funds stay with her regardless of employer, employment, or health plan status.

Multiple funding options: 

An account can be funded by anyone.  Consumers can fund using pre-tax salary deduction and/or tax-deductible contributions, and employers may choose to make contributions.  Family members or others can make contributions to accounts as well.

Flexible use of funds: 

Funds may be used to pay for eligible healthcare expenses on a tax-free basis now or invested for future use.  Funds can be used at any time, tax-free, for eligible medical expenses, or may be used for non-health expenses on a taxable basis (plus a penalty if under 65).

HSAs may also be used to fund certain health coverage premiums, such as COBRA, long-term care, and coverage while receiving unemployment compensation.  Finally, you are free to use your HSA for any other purpose, but funds used for non-qualified expenses will be subject to tax plus a ten percent (10%) penalty.

Easy access to funds: 

Consumers can access funds conveniently with the ARCUS Financial Bank Visa^® debit card, with checks, or using online bill pay through the ARCUS Financial Bank website.  No claim forms are necessary.

Which plans are compatible with HSAs?

An HSA must be coupled with an HSA-compatible high-deductible health plan in order to make contributions to the account.  The IRS determines the guidelines for compatible HDHPs.  Current guidelines are:

IRS Requirements for 2009
	Single Plan	Family Plan
Minimum Deductible	$1,150	$2,300
Maximum Out-of-Pocket	$5,800	$11,600
Contribution Limit	$3,000	$5,950
Catch-up Contribution (55 or older)*	$1,000	$1,000
* If a spouse is also 55 or older, a second HSA must be established if you wish to make a second catch-up contribution of $1,000.

Please visit the website of our parent company, WellPoint, Inc., to learn about WellPoint’s affiliated health plans that provide a variety of excellent HSA-compatible HDHPs. To find eligible plans in your area, please contact your local WellPoint affiliated health plan or speak with your broker.

What are the contribution guidelines for HSAs?

When coupled with a qualifying HDHP, an HSA has the following contribution guidelines:

• Contributions to an HSA can be made by anyone.
• Contributions are tax deductible.
• If an employer contributes to an HSA, that contribution is done on a pre-tax basis.
• Any payroll deductions made through Section 125 for an HSA are also on a pre-tax basis.
• Contributions may be made up to the annual maximum amount as determined annually by the IRS, regardless of the plan’s deductible. The maximum for 2009 is $3,000 for individuals and $5,950 for families.
• The annual maximum amount determined by the IRS applies regardless of when coverage begins, as long as the consumer maintains coverage for the 12 month period beyond the calendar year in which she first became eligible.
  • Example: if a consumer has individual coverage that begins in November 2009, she may still contribute $3,000 for 2009 if she maintains coverage through the end of 2010.
• Employers may roll over funds from an HRA or FSA account once, according to the legislative provisions.

How can HSA funds be used?

Consumers have multiple options for using HSA funds:

• Funds can be used tax-free at any time for eligible medical expenses.
• When the account balance exceeds the minimum investment threshold, funds may be invested in a variety of mutual funds.*
• When a consumer turns 65, she can use the funds for non-eligible medical expenses.  The money is subject to income tax without any IRS penalties.
• If the consumer is under age 65 and uses her funds for non-eligible expenses, she will be subject to income tax and a 10% tax penalty

What is the difference between HSAs and other health spending accounts?

	HSA	FSA	HRA
What does it stand for?	Health Savings Account	Flexible Spending Account	Health Reimbursement Account
Who do the funds belong to?	Employee	Employer	Employer
Who can contribute to the account?	Employer, employee, and others	Employee and employer	Employer
Do the funds rollover year-to-year	Yes	No.  Unused funds are forfeited to the employer.	May roll over if the employer's plan permits.
Is the account portable between employers?	Yes	No	No
Can the money be invested and consumers earn interest?	Yes	No	No

What expenses are eligible for HSA reimbursement?

Section 213(d) of the Internal Revenue code provides information regarding the guidelines used to determine eligible expenses. You are encouraged to view Publication 502 at the IRS website for more information.  ARCUS Financial Bank does not provide advice or guidance in determining if expenses are eligible under the IRS guidelines..

The following is a partial list of eligible medical expenses:

Acupuncture Alcoholism Treatment Ambulance Artificial Teeth Bandages Breast Reconstruction Surgery Braille Books and Magazines Medically or health-related Capital Expenses / Home Improvements Chiropractor Christian Science Practitioner Contact Lenses Crutches Dental Treatment Diagnostic Devices Disabled Dependent Care Expenses Drug Addiction Treatment Drugs / Medicines Eyeglasses Fertility Enhancement Guide Dog or Other Animal Hearing Aids Home Care

Labor and Delivery Laboratory Fees Lead-based Paint Removal Learning Disability / Special Education Long-Term Care Mentally Challenged, Special Home for Nursing Home Nursing Services Optometrist Osteopath Oxygen Prosthesis Psychiatric Care Psychoanalysis Psychologist Stop-Smoking Programs Transplants Vision Correction Surgery Weight-Loss Program Wheelchairs Wigs

Advantages of the ARCUS HSA Integrated with a Health Plan

Due to its relationship with WellPoint, ARCUS Financial Bank offers an HSA product which is fully integrated with some WellPoint-affiliated HDHPs, offering a set of features and ease of use which other HSA providers are unable to match.  Advantages include:

• An integrated application process, allowing you to apply for and enroll in an HDHP and HSA in one step.
• Integrated customer support, allowing you to receive support for your health plan and HSA with one phone call.  Enrolling in a competitor’s HSA product would require you to call your health plan for health plan support and your bank for HSA support.
• Integrated online tools, allowing you to receive support for and administer your health plan and HSA through one site.  Additionally, you are provided with a full picture of your healthcare services and spending.  Such information is simply not possible with a separate HSA product.

ARCUS Financial Bank was created to provide an experience and level of support for WellPoint-affiliated health plan members that is unprecedented and unachievable with 3rd party HSA products.

HSA Products for non-integrated Health Plans

While ARCUS Financial Bank offers HSAs integrated with health plans, we also offer a tremendous set of features for our non-integrated accounts.  As standalone HSAs, ARCUS Financial Bank’s products are full-featured accounts that match the functionality, support, and ease of use of competing products.  You will also find our fees and interest rates among the most attractive in the marketplace.

ARCUS Financial Bank and its affiliates are not providing tax advice through this website and we cannot respond to specific tax questions.  Tax issues are often very dependent on the specific facts.  Clients are encouraged to seek their own tax advice.

Who qualifies for an HSA?

 

 

 

 

 

*INVESTMENTS IN MUTUAL FUNDS ARE NOT INSURED, ISSUED, OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION; NOT DEPOSITS IN OR OTHER OBLIGATIONS OF ARCUS FINANCIAL BANK AND ARE NOT GUARANTEED BY ARCUS FINANCIAL BANK; BUT ARE SUBJECT TO INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND THE POTENTIAL LOSS OF THE PRINCIPAL AMOUNT INVESTED. INDIVIDUALS INVEST AT THEIR OWN RISK.  FUND RATINGS REPRESENT PAST PERFORMANCE AND ARE NOT A GUARANTEE OF FUTURE RESULTS.  INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE AND INVESTORS’ SHARES, WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.

Account holders should carefully consider a mutual fund’s investment objectives, risks, charges and expenses before investing.  If they wish to invest in a mutual fund, they will be provided with a prospectus, which contains this and other important information.  They should read the prospectus carefully before investing.  Mutual funds are offered through Devenir, LLC, which is not affiliated with ARCUS Financial Bank.  Devenir, LLC is a registered broker-dealer and member, FINRA and SIPC.

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