Quicklinks

Products for Consumers

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 you, the consumer, with more control over your 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 you to save and invest pre-tax or tax deductible dollars (similar to a 401k plan).
Opportunity for you to pay for healthcare expenses with pre-tax or tax deductible dollars.
Lower premiums mean lower fixed costs, providing you with greater control over where and how you spend your healthcare dollars.
Greater incentive to shop carefully for healthcare services.

Most importantly, your HSA is owned by you. If your employment changes, the HSA goes with you. If you migrate to a health plan not compatible with HSAs, your money still remains with you. The money in your 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 you may have with other healthcare spending accounts.

HSAs, Health Savings Account Rules, HSA Bank, Best HSA | ARCUS Financial Bank

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

PART 1

PART 2

Intended to cover major medical expenses once the deductible is met. Includes coverage for preventive care.

Used for:

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 your money, permanently:

You own and control the funds in your account 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 you regardless of employer, employment, or health plan status.

Multiple funding options:

Your account can be funded by anyone. You can fund using pre-tax salary deduction and/or tax-deductible contributions, and your employer may choose to make contributions. Family members or others can make contributions to your account as well.

Flexible use of funds:

You may choose to use your funds to pay for eligible healthcare expenses on a tax-free basis now or invest the funds 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).

Your HSA 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:

You can access your funds conveniently with your 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, your HSA has the following contribution guidelines:

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

How can HSA funds be used?

You have multiple options for using HSA funds:

Funds can be used tax-free at any time for eligible medical expenses.
When your account balance exceeds the minimum investment threshold, funds may be invested in a variety of mutual funds.*
When you turn 65, you can use the funds for non-eligible medical expenses. The money is subject to income tax without any IRS penalties.
If you are under age 65 and use your funds for non-eligible expenses, you 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 your 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 Financial Bank 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's 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.

Do I qualify 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.