ADDITIONAL QUESTIONS

What is the process for an employee age 55 that was to do “catch-up” in the Health Savings Account? For year 2007 – the amount was $800. What is the amount for 2008?

Employees age 55 and older who are not enrolled in Medicare can make the “catch-up” contributions of $900 in 2008, and $1,000 in 2009 and after.  These contributions can be made in the same manner as other contributions made to their HSA, and are subject to pro-ration if the account holder is enrolled for less than 12 months. 

I have un-insured parents who will be visiting in the near future. Could I use the HSA for eligible medical expenses for them while they are here in Kirksville?

No.  HSA funds can be used to pay for qualified medical expenses of the account holder, as well as their spouse, dependents that can be claimed on the account holder’s tax return, and any person who could have been claimed on the account holder’s tax return except that:

• The person filed a joint return

• The person had a gross income of $3,000 or more

• You or your spouse if filing jointly can be claimed as a dependent on someone else’s tax return

 If your un-insured parents do not qualify based on the above guidelines, then their charges cannot be paid from your HSA funds. 

HSA:   Anyway, I have some questions (most of which I think I know the answers to) before making my elections. First, as I understand the instructions, at home care giver reimbursements (even if for medical purposes like Alzheimer's) is dependent care FSA, not medical care FSA, correct?

Yes, care giver reimbursements would be considered dependent care costs. 

Second, is home care covered as a legitimate expense under HSAs? To be a qualified expense and eligible for HSA reimbursement, the care and the patient condition must meet specific criteria defined by the IRS.  Without all of the details, I would refer this person to the IRS Publication 502 (www.irs.gov) which lists qualified medical expenses and have them review pages 5-16 to determine how their particular situation would be classified.  Third, am I correct that insurance reimbursement requires pre-certification for at home care giver coverage?  How quickly can this be done?  In order to determine if home care can be considered an eligible expense under the medical plan, a review must be performed.  I suggest that this member contact UniCare as soon as the enrollment is received so that the process can be started asap. 

I wanted to know what level HGA (Human Growth Hormone) will be covered as prescribed to dependent children for diagnosis of growth hormone deficiency or resistance. HGA is covered with regard to the plan, in particular with regards to whether a $30, $60, or $120 co-pay or some other payment system would apply to the HSA.

There are no co-pays under the HSA. It would be the discounted cost of the drug when utilizing a network pharmacy. Whether HGA is covered under the health plan is a benefit specific question.

The possibility of making accelerated payments early in the year to the HSA and reducing them or eliminating them later in the year. 

IRS guidelines state that that employer should allow changes to payroll deductions at least once per month.  The amount contributed into the HSA is up to the account holder, up to the maximum contribution allowed.

How are adjustable replacement lenses (Crystalens, ReZoom, ReSTOR) covered in the treatment for cataracts in any of the three plans? (i.e., do they exclude these, would they only cover the amount over the cost of a standard lens, etc?)

This is a plan benefit specific question – I am not able to respond.

Yes, you may reimburse yourself for an expense with future contributions or past contributions and there is no time limit on this.  The service must have occurred after the HSA account was opened and while you were enrolled in the UniCare Solaura HSA Plan. 

My understanding is that prescriptions are covered at the same amounts as in the other plans, but that in the HSA, except that the co-pay cost in the HSA is included towards the deductible.  Was that right?

There are no co-pays under the HSA. Prescriptions are treated like any other medical expense. It would be the discounted cost of the drug when utilizing a network pharmacy.

What are the investment options available on the HSA funds contributed to my account (both by me and by Truman)?

There are a variety of Dreyfus fund options available if the account holder chooses to invest once they have the appropriate amount in their account.

Do I have co-pays on drugs with the HSA account? 

There are no co-pays under the HSA.

Does the amount of money I pay on drugs count toward my deductible on the HSA insurance plan? 

Yes

Can I adjust my HSA contribution amounts during the year?

 IRS guidelines state that that employer should allow changes to payroll deductions at least once per month.  The amount contributed into the HSA is up to the account holder, up to the maximum contribution allowed.

The amount contributed into the HSA is up to the account holder, up to the maximum contribution allowed.

The quote below was taken from the UNICARE website - and the faculty and staff contacted UNICARE representatives on three different occasions - getting a different answer each time. Will the HSA account be used for all HSA expenses or only covered services? What happens to non-covered services?

The above response is accurate.

I am in the process of getting a divorce, and I will have the child on my plan, I am thinking of the H.S.A., and my ex-wife will have to contribute toward the health insurance. Can she contribute funds to the monthly premium or the amount that I am putting into the H.S.A?

Anyone can contribute money into the HSA. As far as premiums, that is an employer decision.

If we have a couple that is employed at Truman, husband and wife, the normal way to select coverage is (1) employee only and the other selects (2) Employee + child? Does that mean that there is a $9,000 deductible between both of the coverages if the select the H.S.A?

The employee only would have a single deductible under the HSA medical plan and the employee + child would have whatever deductible the HSA medical plan allots for that category of coverage.     

Since there is only one bank offered for the H.S.A - what do we know about the percentages on the account over the long term? Will there eventually be more offerings in the future? When?

The rates are reset every 6 months based on market conditions - since 1/1/07 the rates were as follows:

• 1/1/07 - 6/30/07 - 3.75%

• 7/1/07 - 12/31/07 - 3.5%

• 1/1/08 - 6/30/08 - 3.0%

At this time there will not be more Banking options

As I understand it, you said that those who choose the H.S.A. would pay a co-pay on prescriptions (as opposed to paying the full-price of the prescription out of pocket and potentially through the H.S.A.) and that in addition this co-pay would count towards our deductible.  Looking though at the IRS Code on the H.S.A. it appears that in a High-Deductible Health Account there’s no first-dollar coverage except for preventive care.  It seems like this coverage of prescriptions would be first-dollar coverage, actually making it illegal to have a co-pay on prescriptions in an H.S.A. This is also what the UniCare representative I spoke with told me (that H.S.A. members pay the entire price of prescriptions via their health savings account up to the deductible). I hope though that I have this wrong and the H.S.A. offers prescription coverage with a co-pay.

There are no co-pays for prescriptions on the HSA plan. An example would be that a generic drug would normally cost - $100. UNICARE offers a discount price for the drug at -$60. If you were under Plan A or Plan B, you would pay $15 for the generic drug. But under the HSA plan, you will pay $60 and that will be applied to your deductible. Once the deductible is met, drugs are applied to your co-payment (80% by the Plan /20% by the employee). Once the deductible and co-payment have been met then all eligible prescriptions are paid 100% for the remainder of the plan year.