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IMPORTANT: If you do not elect your benefits during the annual Open Enrollment period or within 31 days of your date of hire, you will not have Roper St. Francis Healthcare health plan coverage until the next year unless you have a qualified life event as defined by the IRS.
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Health Savings Accounts
When you enroll in the Alliance Save plan, a Health Savings Account will be automatically opened for you through Stanley, Hunt, DuPree & Rhine (SHDR), a division of BB&T. Roper St. Francis’ contribution into your HSA (see the chart below) will be deposited into your account.
What is a Health Savings Account?
A Health Savings Account (HSA) is a savings account that allows you to set aside money for health care tax free. It is intended to cover current and/or future expenses. You must be enrolled in a High Deductible Health Plan (HDHP) to contribute to an HSA. An HSA differs from other plans:
- An HSA rolls over from year to year (there is no “use it or lose it”)
- You receive interest on your money
- Money can be invested in mutual funds
- You own the account
- Many liken an HSA to a “medical IRA.”
An HSA is a great savings vehicle. Why? Because there are multiple levels of tax savings with an HSA:
- Contributions are tax-free
- Money spent (also called “distributions”) on qualified medical expenses are tax-free
- Any money earned in the HSA is tax-free
- No other bank account offers this kind of tax advantage and accessibility, making the HSA a great savings tool for medical expenses and retirement
How much will Roper St. Francis contribute to my HSA?
If you select the Alliance Save plan, Roper St. Francis makes a contribution into your Health Savings Account, of up to $1,100. For current teammates, please see the January column below to determine your RSF contribution. The contribution is pro-rated for new teammates according to the chart below.
What is the maximum contribution I can make into my HSA?
The 2018 maximum HSA contribution limits (including Roper St. Francis’ contribution) as set by the IRS are as follows:
- $3,450 single insured
- $6,850 family insured
- $1,000 55+ catch-up contribution
Who is eligible for an HSA?
There are four federal requirements to be eligible for HSAs:
- A person must be covered simultaneously by a qualified HDHP.
- The HSA enrollee cannot be covered by any other health insurance plan, such as a spouse’s plan
- The HSA enrollee must not be enrolled in Medicare
- The HSA enrollee cannot be claimed as a dependent on someone else’s federal income tax return
What is allowable for HSA payments or distributions?
Traditional medical costs, such as diagnosis and treatment of disease are allowable, as well as routine medical visits. In addition, many expenses that may not be covered by traditional health insurance can be paid for through HSA accounts. These include prescription drugs and some non-prescription drugs, eye care, dental care, COBRA premiums, acupuncture, Braille books, midwife services, seeing-eye dogs, qualified long-term care services and more. A more complete list can be found in IRS Publication 502 Medical and Dental Expenses for the tax year in question.
What happens if I use my HSA funds for non-medical expenses?
If an enrollee uses HSA money for non-medical expenses and is under the age of 65, he or she will incur a 10 percent penalty in addition to owing regular federal income tax on such amounts. After age 65, there is no 10 percent penalty, but regular federal income taxes would apply for non-medical expenditures.
What happens to my HSA if I leave Roper St. Francis?
The money you contribute to your HSA, either through payroll deductions or other deposits, is yours. The HSA account is in your name and you have sole rights to this account, regardless of what company you work for. Even the contribution RSF makes to your HSA is money you keep. Once the funds are deposited to your account the money belongs solely to you. It cannot be forfeited due to termination of employment.
Summary of HSA advantages:
- Affordable Health Insurance – You generally pay less each month for high deductible health insurance• Affordable Health Insurance – You generally pay less each month for high deductible health insurance
- Triple Tax Advantages – Pre-tax contributions to your HSA, tax-exempt interest and investment gains on your HSA and tax-free withdrawals from your HSA for qualified medical expenses
- Unprecedented Control – You are now in control of how your health care dollars are used – save or spend, it’s your choice• Portability – Your HSA is an account that you own and remains in place regardless of where you work or what insurance company you are insured by
- Flexibility – Your HSA contributions can be used to pay for a wide range of eligible medical expenses not typically covered by low deductible health insurance or other health care accounts
- Planning for the Future – HSA contributions can be directed toward long-term investment vehicles, such as mutual funds, to maximize the future value of your HSA