Download 1/1/17 Health Savings Accounts – FAQs Cont.

1/1/17 Health Savings Accounts - FAQs
During this Open Enrollment, if you are choosing the McLaren Health Plan High Deductible
Health Plan (Plan 3), this plan can be aligned with a Health Savings Account (HSA).
1. Q: What is a Health Savings Account?
A: A Health Savings Account (HSA) is a tax-advantaged medical savings account. Unlike a Flexible
Savings Account (FSA), the money in an HSA rolls over from year to year and is yours, even if you
leave the employer. Employees put pre-tax dollars in an HSA to be used for the payment of
qualified medical expenses, such as anything that accrues towards your deductible or coinsurance.
HSAs can also be used in retirement. Qualified High Deductible Health Plans (HDHP) can be aligned
with a Health Savings Account (HSA) to help pay for the deductible and coinsurance. You cannot
contribute to both an HSA and FSA at the same time.
Plans Eligible for an HSA
 Plan 3
*The rates under this plan are less than the Hard Cap limitation. This plan will automatically come
with an HSA partially funded by MCC. The difference between the hard cap limitation and the
premium amount will automatically be placed in an HSA for the employee. The employee can opt to
contribute their own dollars as well.
2. Q: How much will the College automatically be contributing towards these HSAs?
A: The College will automatically contribute the following one-time contribution for each employee
that enrolls in the following plan/coverage:
Plan 3
Single
2-Person
Family
$976.82
$2,049.84
$2,702.96
3. Q: When will the College’s one-time contribution under Plan 6 be deposited into the HSA?
A: January 2, 2017.
4. Q: Are there any limitations on who is eligible to contribute to a Health Savings Account?
A: Yes. You must be enrolled in an IRS eligible High Deductible Health Plan and you cannot be
Medicare age eligible (65 or older).
As of 10-27-16
1/1/17 Health Savings Accounts – FAQs Cont.
5. Q: Are there limits to how much can be contributed to a Health Savings Account (HSA) each year?
A: Yes, there are dollar limits to how much can be contributed during a benefit period.
 Individual
$3,4000*
 Two person/family $6,750*
*These limits are subject to change by the IRS.
6. Q: What bank will be administering the Health Savings Accounts?
A: HSA Bank will be the administrator for the Health Savings Accounts. (For more information on
HSA Bank see the Health Savings Account section of the HR Open Enrollment Website).
7. Q: Can I choose my own bank to administer my Health Savings Account?
A: No. The College will be utilizing only one vendor.
8. Q: If I choose Plan3 and the College automatically contributes the dollars listed above into an
HSA for me, am I required to contribute additional dollars myself?
A: No. You will not be required to contribute additional dollars to the HSA that the College opens
and contributes to on your behalf.
9. Q: Can I change the amount of my pre-taxed payroll deduction after I enroll?
A: Yes. You can change your payroll deduction at anytime but are limited to only one change per
Month (per the IRS).
10. Q: What if I want to contribute to both a Flexible Spending Account (FSA) and a Health Savings
Account (HSA) beginning January 1, 2017?
A: You cannot contribute to an HSA and an FSA at the same time.
11. Q: If I’ve chosen Plan 3, and am not currently enrolled with HSA Bank how do I enroll in a Health
Savings Account (HSA)?
A: You will need to complete the HSA Bank Enrollment Form attached to you Election Form during
open enrollment. The HSA Form will need to be returned to Human Resources by November 18,
2016.
12. Q: If I don’t choose a High Deductible Health Plan, can I still open a Health Savings Account (HSA)?
A: No. IRS rules limit the enrollment in Health Savings Accounts only when aligned with a High
Deductible Health Plan. You can however open a Flexible Spending Account (FSA). The FSA form
will also be attached to your Election Form during open enrollment.
As of 10-27-16