Health Savings Accounts. Employer User Guide

Transcription

1 Health Savings Accounts Employer User Guide

2 Health Savings Accounts Employer User Guide (SG) Published by: J.P. Morgan 2011 J.P. Morgan Chase & Co. All rights reserved. J.P. Morgan Chase Bank, N.A. Customer FDIC This document contains information that is confidential and the property of J.P. Morgan. It may not be copied, published or used, in whole or in part, for any purpose other than expressly authorized by J.P. Morgan. Version J.P. Morgan Treasury Services 2

3 Table of Contents Introduction... 5 What Happens Next?... 6 Sample Timelines for Implementation... 8 Employee Enrollment... 9 Account Opening Process Account Closures Welcome Kit & Debit Card HSA Contributions Employer Contribution Methods Used By Employers Employer Contributions Funding Reserve Account via ACH Credit Funding Reserve Account via Wire Direct ACH Credits to Employee HSAs Funding Reserve Account via Paper Check: Check and Paylist to HSAs Allocation & Reconciliation of Funds Quick Funding Manual Funding Payroll/CSV Funding via the HSA Portal Reconciliation of Funds Employee Funding Options Rollover or Transfer of HSA/IRA/MSA Funds into HSA Distributions from the HSA Online Training for Employers Online Training for Employees Reporting for Employees Reporting for Employers Summary of Program/ Petty Reports (Reports 1-8) Summary of Reserve Account/ Funding Reports (Reports 9-11) HSA Online Portal Services Employer Website HSA Web Site for Employees J.P. Morgan Treasury Services 3

4 Marketing to Employees Additional Employer Resources Fees and Billing via Direct Debit HSA Service Customer Service Center Client Service Unit (CSU) Best Practices for Increasing HSA Enrollment Frequently Asked Questions Appendix A Account Status Definitions Appendix B Technology Considerations J.P. Morgan Treasury Services 4

5 Introduction Thank you for considering J.P. Morgan Chase Bank, N.A. as the preferred administrator for your Health Savings Account (HSA) program. We are pleased to provide the HSA Program for your company and its employees, and we look forward to working with you to establish a successful program. This guide is intended to help accomplish that goal. Key Advantages of the J.P. Morgan HSA Program for your Company Optimizes Your Benefits Program You can reduce healthcare costs and lower FICA tax liability while providing competitive benefits to your employees Provides Flexibility We offer multiple ways to fund accounts providing you with the flexibility you need to manage your program Program Management We provide you with the tool and reporting to help effectively manage your HSA program Key Advantages of the JPMorgan Chase HSA Program for your Employees Provides a versatile savings vehicle for employees Offers tools for employees to finance current medical expenses and generate wealth for future healthcare and potential retirement needs Easy-to-Use Solution Provides access to funds, via a simple swipe of a debit card, in an interestbearing account that may be integrated with an investment account Investment Capabilities Offers employees a diverse range of mutual funds through an innovative and flexible HSA investment service Strength of a Trusted Leader Ensures the dedicated support and strength that only a solid financial institution can provide JPMorgan Chase HSA Features FDIC-insured, interest-bearing cash account with competitive interest rate and low fees Visa -branded debit card for use at thousands of ATMs and millions of point-of-sale locations, including pharmacies, doctors offices and hospitals Flexible funding options for employees and employers User-friendly employee Web site provides secure online access to balance information and transaction history Diverse range of mutual fund choices in the HSA investment account Integration of the investment account with the cash account, providing seamless online administration and next-business-day transfers between accounts No trading fee for online mutual fund trades Access to the Chase HSA Calculator Suite (planning tools) Dedicated customer service Monday-Friday 8am-8pm ET Required tax forms filed with the IRS and mailed to account holders annually 2013 J.P. Morgan Treasury Services 5

6 What Happens Next? The following is a high-level overview of the HSA implementation process. J.P. Morgan HSA Implementation Process Contract & Setup Form Final (completed) Registration Sent to Employer Program Infortmation & Training Enroll Employees Fund Accounts 1. Employer Website Registration: Download Program Information (see Figure 1 & 2): After you login to HSA Online Portal Services website, download and save your Program Information document, which includes details on the following: a. Client numbers for the Employer (how we identify you) b. HSA Reserve Account numbers c. Training Information for Employers d. Employer-specific Employee enrollment details e. Details on where to get Employee educational pieces Figure 1: Register for Online Portal Services and Download the Program Information Document 2013 J.P. Morgan Treasury Services 6

7 Figure 1: Sample Program Information Document 2. Employer Training: Set aside minutes to review the Employer training module. Available via the website (or this training will provide a detailed overview of how to administer an HSA program for your employees. If you d prefer to attend a live training session (via Webinar/Conference Call) please contact the HSA Client Service Unit to schedule an appointment. 3. Educate Employees: a. Employers can download HSA employee education materials at Links to the marketing library are also posted on the Employer website. 4. Employee Enrollment: In order for employees to have HSAs associated with your program they must use the exact details provided in the Program Information document. Please distribute the following to ensure the program is setup correctly: a. The exact website address/ URL listed (case sensitive) b. The HSA Enrollment ID and Verification Code Accounts are established at Chase once identification is verified. Welcome kits are sent with debit card and other program information directly to account holders. 5. Fund Accounts: a. As needed, funds are sent to J.P. Morgan and credited to HSAs (via payroll deductions and any direct employer contributions) b. Employees can also fund accounts directly with Chase via EFT or by check at any time The remainder of this guide will focus on the steps above in greater detail J.P. Morgan Treasury Services 7

8 Sample Timelines for Implementation Implementation timeframes can vary between clients. Below is a sample. Key Responsibilities for Employers Finalize group setup information (as needed) Provide educational materials to employees Coordinate employee benefits enrollment Determine funding process and transmit funds and information to Chase Determine the amount of contributions (if any) to make to employees HSAs 2013 J.P. Morgan Treasury Services 8

9 Employee Enrollment The HSA process for your employees begins when they elect the high deductible health plan (HDHP) coverage offered by your firm and select the option of opening an HSA. With J.P. Morgan hosted Online Enrollment, your involvement is minimal. The Program Information document included key information needed for employee HSA enrollment, including: 1. A unique URL/Web site address to the enrollment Web site 2. The HSA Enrollment ID and Verification Code to ensure employees enrollments are linked to your company in our system It is the responsibility of your company to communicate the exact Web site information and applicable Enrollment ID and Verification Code to prospective account holders. Employees can contact Chase HSA Customer Service with any questions about the online enrollment experience. To provide employees with a paper application, please contact the Client Service Unit (additional fees may apply) J.P. Morgan Treasury Services 9

10 Account Opening Process USA PATRIOT Act and Customer Identification Process (CIP) The information collected during the enrollment process will be used to comply with the requirements of the Customer Identification Process (CIP) Chase uses to comply with the federal USA PATRIOT Act. If the applicant s supplied name, date of birth, social security number, and address cannot be verified in a national database, Chase will request additional documentation to explain the discrepancy. Information requested typically includes items such as the following: copy of current driver s license, copy of utility bill or passport. Failure to respond to requests for additional information will result in account closure. Note: Accounts that are still out of compliance (e.g. in PendOpen CIP) after 60 days will be closed. Timing of Account Opening If your employee meets the eligibility requirements for an HSA, he/she may establish an HSA by completing online enrollment. The HSA is established on our system as of the date we approve the employee for the HSA. However, for tax and legal purposes, the employee's HSA may not be effective until the required HDHP insurance coverage is effective, and in some states, not until funds are deposited in the HSA. Tracking of the HSA opening date for tax and legal purposes is solely the responsibility of each HSA account holder. Employees should be encouraged to open the HSA and make an initial deposit as soon as possible because only those expenses incurred on or after the HSA is opened are eligible to be paid or reimbursed from the HSA. Note: IRS regulations state HSA funds cannot be used to pay medical expenses incurred prior to the HSA open date. Employee Terminations Free Agent Process Upon notification by the account holder or authorized Company contact, Chase can remove an account holder from your program and transfer the employee s HSA into a stand-alone status unaffiliated with your program. Depending on your program, this transition can occur because of an employee termination or because the employee is no longer covered under an HDHP. Account Closures When account holders call to request account closure, the Service Representative will: Check whether the caller has an HSA investment account If so, we advise the account holder to liquidate their HSA investments and request that they close their investment account Provide the caller with the Account Closure Request form to complete and return after all outstanding HSA checks have cleared, any scheduled online bill payments have been paid, and any investments have been sold Outstanding balances associated with the HSA line of credit will remain the obligation of the account holder 2013 J.P. Morgan Treasury Services 10

11 Upon receipt of the signed Account Closure Request form, Chase can begin the account closure process (typically 10 business days). Once the account is officially closed, a check for the account balance will be sent to the account holder or new custodian, as directed. Welcome Kit & Debit Card Once Chase opens an HSA for your employee on our system, we will send the account holder a Chase HSA Welcome Kit along with a Chase HSA debit card. Also included in the Welcome Kit are materials that outline the program, reinforce the benefits of an HSA, and answer frequently asked questions. If the enrollment has been received and the employee s identity has been verified in advance of the HDHP effective date, then HSA debit card(s) and the Welcome Kit are sent 10 days prior to the expected HSA opening date J.P. Morgan Treasury Services 11

12 HSA Contributions Employer An HSA may be funded by anyone, including the employee and his/her employer. Although there are multiple methods for funding the accounts, Chase offers two basic models for Employers to fund (or facilitate funding to) HSAs: Method 1: Contributions from an external account directly to the individual HSA Method 2: Reserve Account to Employee HSAs - Aggregate funding to a Chase Reserve Account assigned to the Employer. You can then allocate funds from the Reserve account into individual HSAs using multiple tools we will review in the next section J.P. Morgan Treasury Services 12

13 Contribution Methods Used By Employers The chart below outlines the options for employers who facilitate the funding of HSAs. Included are the turnaround times to post funds and the tools/processes available to clients to make sure funds are allocated to the correct account. Detailed overviews of each funding and allocation method are provided on the pages that follow. Contribution Method Brief Description Tools for Funding Employee HSAs Timing of Transfer Comments Direct ACH Credit to Reserve Account Employer sends one ACH to reserve account assigned to program. Employer can then allocate funds to individual HSAs Quick Funding Manual Funding CSV file upload 2-3 banking days Popular method for Employer funding Wire Funding to Reserve Account Employer sends one Wire to reserve account assigned to program. Employer can then allocate funds to individual HSAs Quick Funding Manual Funding CSV file upload 2-3 banking days Popular method for Employer funding Direct ACH Credit to HSA Employer sends individual ACH contributions directly to each Employee HSAs Account Number Report via Portal 2-3 banking days Less efficient, also less reporting available Paper Check to Reserve Account Employer sends one check to reserve account assigned to program. Employer can then allocate funds to individual HSAs Quick Funding Manual Funding CSV file upload 4-5 banking days Additional fees may apply Check and Paylist to HSAs Employer sends paper check and spreadsheet in the mail to Chase. Chase moves funds directly into Employee HSAs as indicated on Paylist. Account Number Report via Portal 4-5 banking days Additional fees may apply Employer Contributions Employers who contribute or facilitate employee contributions can: Contribute directly to the employee s account via ACH or Check. Contribute to the Employer Reserve Account via ACH, Wire or Check and allocate funds using one or more of the methods described in the ALLOCATION & RECONCILIATION OF FUNDS section. Funding Reserve Account via ACH Credit This method utilizes the Automated Clearing House (ACH) Network for electronic clearing of funds between banks and is the one-to-many method that permits you to send the funds for multiple employee HSAs via a single ACH credit to the Reserve Account J.P. Morgan Treasury Services 13

14 Employers can work with their bank to push funds to J.P. Morgan, or you can also use the HSA Online Portal Services to initiate / pull these funds. To establish the online process, contact the Client Service Team who will help certify your account for online usage. Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section): Quick Funding, Manual Funding via the portal or Payroll/CSV Funding Funds are posted and available to account holders within 4 hours of processing the instruction file (unless you specify that funds should post on a future date). ACH Instructions Employers funding their Reserve Account will need to provide the bank with the information below. Routing Number = # Reserve Account Number = (begins with 397XXXXXXXXX) Transactions sent via ACH should assume JPMC is an external bank regardless if the source account is also with J.P. Morgan or Chase. Funding Reserve Account via Wire Clients who fund the Reserve Account via Wire will need to complete 2 steps as part of the funding process. All necessary information will be provided in the Program Information Document. Step 1: Work with your bank to send funds to J.P. Morgan instructions below J.P. Morgan Step 2: Notify the J.P. Morgan Client Service Team of the Wire (copy and paste Part 1 and 2 below into e- mail to HSA.DTE@JPMCHASE.COM) Part 1: Wire Remittance Memo Date: XX/XX/XXXX To: Chase HSA CSU Fax #: Address: HSA.DTE@JPMCHASE.COM Client Name: XXXXXXXXXXXX Client 800 Acct. #: 800XXXXXXXXXX Part 2: Wire Instructions Credit Bank: JPMorgan Chase Bank, N.A. ABA/Routing #: Credit Account Number: Credit Account Name: [Client Name] Beneficiary Reference: 397XXXXXXXXX Wire Transfer Details: From [Client Name] for credit to Reserve Account 397XXXXXXXXX Amount: XXXXXXXXXXXXXXX 2013 J.P. Morgan Treasury Services 14

15 Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section): Quick Funding via the portal Manual Funding via the portal Payroll/CSV Funding via the portal Additional Wire Details To help assure wire transfers for credit to HSAs at Chase are received with sufficient information to allow timely posting, please work with your financial institution to create a Predefined or Preformatted Funds Transfer that contains the following information or meets the following requirements: The Reserve account to be credited with the funds being transmitted by wire transfer must be included with the funds transfer instructions. The Reserve account information must appear in the first 12 spaces of the Beneficiary Reference Field. In addition, the wire transfer details section must contain the name of the company sending the funds. o Beneficiary Reference: (Number of the Reserve Account to be credited) o Wire Transfer Details: From (Employer Name) for credit to (Reserve Account) Funds transfers received that do not contain the information in these fields might experience delays in posting or be returned. Bank will have no liability with respect to any such delays. Direct ACH Credits to Employee HSAs This method utilizes the Automated Clearing House (ACH) Network for electronic clearing of funds between banks, and is similar to the way that you process direct payroll deposits. Direct ACH transmission is widely accepted in the banking industry and once set up, is easy to administer and use. You must work with your originating bank to provide the PPD ACH transmission information in the correct format. This method allows you to send contributions directly into the HSA of the employee and does not require a Reserve (or funding ) account. Employers funding direct to Employees accounts will need to provide the bank with the information below. Routing Number = # HSA Account Number = (begins with 397XXXXXXXXX) Advantages of Direct ACH Credit No Excel templates required. New Account Report (Employer Report) posted daily to the employer portal for account status to ensure accounts are active/open and that funds are accepted. Considerations for Direct ACH Credit Per-transaction charges from your bank may apply to this funding method. Chase cannot distinguish source of funding (EE vs. ER contribution) J.P. Morgan Treasury Services 15

16 If you presently have direct deposit of payroll, you will need to complete the following steps (possibly with assistance from your bank): 1. Contact the company or your internal department that handles your payroll direct deposit; request that they prepare and submit a NACHA file to initiate the ACH deposit into HSAs; 2. Provide the HSA account numbers for each participant to the company or internal department handling the payroll direct deposit; a. Account numbers provided via the New Account Report available daily at the employer portal 3. Submit a pre-note transaction for each account; receive and review the traces regarding each submission 4. Upon successful pre-note, proceed with deposits into the accounts. Please note that your company account will be debited and the individual s HSA will be credited for the amount of each transaction. In addition, your financial institution may impose a service fee for this processing. Funding Reserve Account via Paper Check: Employers can send a paper check to fund their Reserve Account. Paper Checks should reference the Employer s 397XXXXXX Reserve Account number and be sent to the following address: Chase HSA Operations PO Box Tampa, Florida Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section): Quick Funding Manual Funding via the portal Payroll/CSV Funding Check and Paylist to HSAs Employers can send Chase a paper check with a Paylist to the Chase HSA lockbox for processing contributions into Employee HSAs. Please contact the Client Service Team for a copy of the Paylist template. Once completed, the check/paylist should be sent to the following address: Chase DTE HSA Network Place Chicago, IL Please Note: Additional fees may apply for Check/Paylist funding 2013 J.P. Morgan Treasury Services 16

17 Allocation & Reconciliation of Funds Companies who first send funds to the Reserve Account can then use 3 online methods to transfer contributions to the Employee HSAs. All methods require access to the Online Portal Services website (assigned to program administrators during setup process). 1. Quick Funding via the portal 2. Manual Funding via the portal 3. Payroll/CSV Funding via the portal Regardless of the allocation method, the HSA Reserve Account balance must always be equal to or exceed the allocation amount from the methods above to prevent rejections for insufficient balance. Quick Funding Via the Online Portal Services Website, Employers can easily transfer funds from the Reserve Account to the Employee HSAs with just a few clicks. This is the most popular allocation method for most programs with less than 200 accounts. Key Features of Quick Funding Presents full roster of enrolled employees Facilitates recurring contributions (stores previous contribution amounts) Funds posted to Employee HSAs within 30 minutes, unless a future funding date is specified. Considerations for Quick Funding Sources of funds limited to Employee, Employer Limited to funding Limited to programs with up to 300 accounts 2013 J.P. Morgan Treasury Services 17

18 Manual Funding Employers can transfer funds from the Reserve Account to the Employee s HSA manually, by entering specific account information into an online spreadsheet. Please see the Bulk Funds Transfer Guide in the HSA Document Library for step-by-step instructions. Key Features of Manual Funding Web-based method of funding similar to filling out a blank spreadsheet. Good method for ad hoc or 1-off funding Ability to classify transactions using full set of source codes Funds posted to Employee HSAs within 30 minutes, unless a future funding date is specified. Considerations for Manual Funding For groups with more than 5 accounts, using the Quick Funding or Payroll/CSV method may be more productive than re-entering contribution information each pay cycle Payroll/CSV Funding The Payroll CSV method of funding is a simple way, without any technology development, for an employer to provide numerous funding instructions to Chase for employee contributions to HS As. Wire ACH Employer Bank Account/ Payroll Deductions Employer HSA Reserve Account at Chase CSV Funding via Employer Portal HSA Contribution(s) Complete Key Features of Payroll/CSV Funding Data can easily be copied from any database program into a CSV file Data from previously saved files can be copied and pasted into a new CSV file to save time when only minor changes are needed. Chase provides a template with the required fields presented as a header at the top of each column This file can be uploaded into the HSA Employer Portal by a client user with appropriate access. The system checks the reserve account available balance against the total of all credits in the file. If sufficient funds are not available, the file will fail. Considerations for Manual Funding CSV Funding can used be for programs with up to 2,000 HSAs. If you have more than 2,000 accounts please either fund your accounts in groups of less than 2,000, or contact the Client Service Unit for additional options J.P. Morgan Treasury Services 18

19 Please see the Payroll/CSV User Guide in the HSA Document Library for step-by-step instructions on how to populate and upload a CSV file. Reconciliation of Funds Chase offers numerous tools for your company to reconcile the Reserve account. These include reports Accessible via the HSA Online Portal - see Reporting section of this document for more information. Daily report detailing all completed funding transactions Daily Reports detailing all previously pended transactions which have been completed or cancelled 2013 J.P. Morgan Treasury Services 19

20 Employee Funding Options Employees who want to send HSA contributions directly to Chase have 2 options: Option 1: Send a check and deposit slip to Chase to the address provided. Funds post 4 to 5 days after receipt of deposit slip. Deposit slips are provided in the welcome kit and can also be requested by calling Customer Service. Option 2: Authorize a one-time or recurring Electronic Funds Transfer (EFT) from the Accountholder Website. Account holders can complete this request during enrollment or access the website to establish at any time. For one-time transfers, funds post 2 to 3 business days from receiving the form. For recurring EFT's, account holders can direct the date the EFT is performed each month. Option 3: Direct ACH Employees can initiate an ACH transaction to fund their HSA from another bank account. Funds are generally posted in 48 hours from time of receipt. They will need to provide the bank with the information below. Routing Number = # Account Number = 12 digits, beginning with 397 Rollover or Transfer of HSA/IRA/MSA Funds into HSA Some HSA account holders may already have other HSAs, Medical Savings Accounts (MSAs) or an Individual Retirement Account (IRA). Funds in an existing HSA, MSA or IRA may be rolled over or transferred to another open HSA. If the account holder chooses to roll over funds to their new Chase HSA, Customer Service can provide a rollover request form, or one can be accessed online. Account holders may complete a HSA/MSA Rollover Request form and provide it to their current MSA or HSA custodian, instructing them to transfer funds to the Chase HSA. Account holders can also complete a separate IRA Rollover Request form and provide it to their current administrator, instructing them to transfer funds to the Chase HSA If the account holder has already received the funds from the former custodian, then s/he can complete the rollover request form and send it, along with a check for the rollover funds, directly to Chase J.P. Morgan Treasury Services 20

21 Distributions from the HSA From the first time employees use their account, they are assured safe and convenient access to their HSA funds. Chase offers account holders multiple options for accessing HSA funds. Please note that fees may apply to some of these transaction types; see your fee schedule for complete details. HSA Debit Card: Acceptance at millions of physicians offices, hospitals and other merchants that honor Visa debit cards Access to more than 900,000 ATMs, including surcharge-free access at over 14,000 Chase ATMs nationwide Cash back option at point-of-sale Direct Deposit Transfers Electronic transfers from the HSA to the employees personal checking or savings Account can be setup on the secure website. Online Bill Pay: Similar to standard online banking, J.P. Morgan gives employees the ability to schedule payments online via the Bill Pay functionality. Account holders can make a one-time payment or establish recurring payments as needed. Optional HSA Checkbook: Account holders can request a traditional checkbook to access funds in their account. They can request the checkbook as part of the enrollment process or by calling customer service. Applicants will be asked to complete a signature card (sent by J.P. Morgan), and must pass a check history screening prior to receiving the checkbook 2013 J.P. Morgan Treasury Services 21

22 Online Training for Employers Once you ve received the Program Information document, you can also access the online Training Module. Set aside minutes to review the training module. Available via the website (or this training will provide a detailed overview of how to administer an HSA program for your employees. If you d prefer to attend a live training session (via Webinar/Conference Call) please contact the HSA Client Service Unit to schedule an appointment. Live Training is also available and will generally be held on the second and fourth Tuesday of each month, from 1:00 to 2:30 p.m. Eastern Time. Clients are invited to dial into a shared conference line to join the training discussion. Training Topics include: HSA Program Overview Enrollment for Employees Sending funds to the HSA Reserve Account Funding using the Quick Funding, Manual or Payroll/CSV How to access HSA Reports Managing Your HSA Program Please contact CSU to schedule your attendance for a particular date and request training materials. Training materials, including a PowerPoint presentation, will be provided in advance via . To make the most of your training session, be sure to complete the assigned pre-reading. To schedule training for your program administrators, please contact the Client Service Unit at Online Training for Employees Employees have multiple options for learning about HSAs. The most common ways employees are educated include: Employer distributes materials from the HSA Marketing Resource Center ( Employees access the HSA Education Center at Employees attend a J.P. Morgan hosted HSA 101 Webinar (conducted monthly); includes opportunities to ask the experts J.P. Morgan Treasury Services 22