PNC Health Savings Account

Transcription

1 PNC Health Savings Account FREQUENTLY ASKED QUESTIONS Thank you for choosing PNC to be your HSA provider. Enclosed is everything you need to know about opening your account. Should you have questions about your enrollment, please call Employer Group ID CON PDF

2 Start today. Plan for tomorrow. Save for medical expenses today and be ready when you need it the most. Health conditions are hard to predict. We all work to have good health, but when the unexpected happens or an ongoing illness surfaces, you need to be prepared financially to do what s best for your health. If you have a High Deductible Health Plan (HDHP), you benefit from lower premiums, but this also means you should be prepared to pay a higher deductible. A PNC Health Savings Account (HSA) is designed to help you save for qualified medical expenses on a tax-advantaged basis. It s easy you contribute money saved on your low premiums to your HSA and let that money grow so you can afford your deductible when needed. 1

3 The Healthy Benefits of a PNC Health Savings Account Cost savings when you choose a low-premium HDHP, instead of paying more to the health insurer, the invested difference in your HSA helps to build financial security. Control you own the account and the money in the account, even if your employer contributes to it. Tax savings benefit from tax-advantaged contributions, earnings and withdrawals for qualified expenses. 1 Long-term savings funds roll over from year-to-year if unused. The balance in your HSA will generally grow tax-free with no pressure to use the full balance by year-end. You may be able to use unused balances to supplement retirement income after age 65, subject to applicable income taxes. Ownership your money stays with you even if you switch jobs, change medical coverage, become unemployed or retire. Get Started Today PNC offers an affordable HSA with several features that make it easy to use and easy to get started. Easy to open open your account through an automated enrollment process or online account application. Easy to use pay qualified medical expenses with your free PNC Health Savings Account Visa debit card, online transfer from your PNC HSA to a personal bank account or by reimbursement via check request or HSA check. Easy to contribute employees can contribute via payroll deduction, scheduled or one-time contribution from their personal bank account or by check contribution through US mail. Ability to grow account your PNC HSA includes an FDIC insured deposit account (covered to the extent permitted by law) with tiered interest rates. Plus, you have the option to invest in any of nine mutual funds 2 once your HSA balance exceeds $2,000. Easy to access PNC offers multiple ways to help manage your account: > Free online account access 24/7 access to account balance and transaction history. You can also view your health spending and savings, manage investment options, etc. > Phone toll-free account owner customer service from 9am 5pm ET Monday-Friday, excluding holidays. > Paper or electronic statements quarterly and year end statements. 2

4 Frequently Asked Questions Source: The U.S. Department of the Treasury 1 Who is eligible for a Health Savings Account? Eligible individuals are those who: Are covered by an HSA qualified high deductible health plan Are not covered by other health insurance that provides the same benefits also covered by your HDHP Are age 18 or older Are not claimed as a dependent on someone else s tax return Are not enrolled in Medicare 2 How do I know if my health insurance plan is a qualified HDHP? Various factors specified by the Department of Treasury, such as deductible amount and annual out-of-pocket expenses, help to determine whether an insurance plan is a qualified HDHP. To find out if your insurance plan is a qualified HDHP, contact your insurance company, agent or broker. 3 Can I get an HSA even if I have other insurance that pays medical bills? You re only allowed to have auto, dental, vision, disability and long-term care insurance at the same time as an HDHP. You may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered. Wellness programs offered by your employer are also permitted if they don t pay significant medical benefits. 4 Does the HDHP policy have to be in my name to open an HSA? No, the policy does not have to be in your name. As long as you have coverage under the HDHP policy, you can be eligible for an HSA (assuming you meet the other eligibility requirements for contributing to an HSA). You can still be eligible for an HSA even if the policy is in your spouse s name. 5 I don t have health insurance, can I get an HSA? Unfortunately, you cannot establish and contribute to an HSA unless you have coverage under an HDHP. 6 I m on Medicare, can I have an HSA? You re not eligible for an HSA after you ve enrolled in Medicare. If you had an HSA before you enrolled in Medicare, you can keep it. However, you cannot continue to make contributions to an HSA after you enroll in Medicare. 7 My employer offers an FSA, can I have both an FSA and an HSA? You can have both types of accounts, but only under certain circumstances. General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA. If your employer offers a limited purpose (limited to dental, vision or preventive care) or postdeductible (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA. 3

5 8 My employer offers an HRA, can I have both an HRA and an HSA? You can have both types of accounts, but only under certain circumstances. General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA. If your employer offers a limited purpose (limited to dental, vision or preventive care) or post-deductible (pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA. If your employer contributes to an HRA that can only be used when you retire, you can still be eligible for an HSA. 9 Does my income affect whether I can have an HSA? There are no income limits that affect HSA eligibility. 10 When can I start contributing to my HSA? You may not begin contributing to your HSA until the effective date of your HDHP coverage. 11 How much can I contribute to my HSA each year? Your maximum annual HSA contribution is based on the limit set by the Department of Treasury for your type of coverage (self-only or family). The effective date of your HDHP coverage may affect your contribution limit. 13 I m over the age of 55, can I make catch-up contributions? Yes, individuals age 55 and older who are covered by an HDHP can make catch-up contributions each year in amounts set by the Department of Treasury. 14 Can couples establish a joint account and both make contributions to the account, including catch-up contributions? Joint HSA accounts are not permitted. Each spouse should consider establishing an account in his or her own name. This allows you to both make catch-up contributions when each spouse is 55 or older. 15 Who can contribute to my HSA? Contributions to your HSA can be made by you, your employer or both. All contributions are aggregated to determine whether you ve contributed the maximum allowed. 16 Will my bank notify me if I ve exceeded my allowable contribution amount? No, it s your responsibility to keep track of the amounts deposited and spent from your account, just like a normal savings or checking account. 12 Do my HSA contributions have to be made in equal amounts each month? No, you can contribute a lump sum or in any amounts or frequency you wish. 4

6 17 Does an HSA pay for the same things as regular insurance? HSA funds can be used to pay for a qualified medical expense, even if the expense is not covered by your HDHP. 18 How do I know what is included as a qualified medical expense? You re responsible for deciding whether an expense is a qualified medical expense and being familiar with what qualified medical expenses are by reviewing a partial list provided in IRS Publication 969 (available at You should also keep your receipts in case you need to defend your expenditures or decisions during an audit. 19 What happens if I use HSA funds for nonqualified expenses? If HSA funds are used for expenses other than qualified medical expenses, the amount withdrawn will be taxed and, for individuals who are not disabled or over age 65, subject to a penalty. 20 Can I use the money in my HSA to pay for medical care for a family member? Yes, you may withdraw funds to pay for the qualified medical expenses of yourself, your spouse or a dependent without tax penalty. 21 What happens to the money in my HSA if I lose my HDHP coverage or enroll in Medicare? Funds deposited into your HSA remain in your account and automatically roll over from one year to the next. You may continue to use the HSA funds for qualified medical expenses. You are no longer eligible to contribute to an HSA for months that you are not an eligible individual because you are not covered by an HDHP or because you enrolled in Medicare. 22 What happens to the money in a Health Savings Account after I turn age 65? Once you turn age 65, you can continue to use your account tax-free for out-of-pocket medical expenses. You can also use your account to pay for things other than medical expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. If you have retiree health benefits through your former employer, you can also use your account to pay for your share of retiree medical insurance premiums. The one expense you cannot use your account for is to purchase a Medicare supplemental insurance or Medigap policy. 23 Can I use my HSA to pay for medical expenses incurred before I set up my account? No. You cannot reimburse qualified medical expenses incurred before your account is established. We recommend you establish your account as soon as possible. 5

7 CONTACT INFORMATION HSA PROGRAM HSA ACCOUNT HSA ELIGIBILITY Taxes/Pages/Health-Savings-Accounts.aspx QUALIFIED MEDICAL EXPENSES MAILING ADDRESS PNC Bank HSA Account Services P.O. Box 9776 Providence, RI PNC does not provide legal, tax or accounting advice. Consult your tax advisor about tax benefits applicable to Health Savings Accounts. 2 Shares of mutual funds are not deposits or obligations or guaranteed or endorsed by any bank, nor are they federally insured or otherwise supported by the Federal Deposit Insurance Corporation or any other governmental agency. Investments in mutual funds may lose value, including possible loss of principal. Please read the prospectus carefully before you invest The PNC Financial Services Group, Inc. All rights reserved. Bank deposit products and services provided by PNC Bank, National Association. Member FDIC Visa is a registered trademark of Visa International Service Association and used under license