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SuperMed HSAs
A SuperMed HSA (Health Savings Account) plan provides you with quality personal health insurance combined with an account that is tax-advantaged and has investment opportunities.
SuperMed HSAs are composed of a Qualified High Deductible Health Plan (QHDHP) and a health savings account. HSAs work like an IRA, except money deposited in the savings account can be used to
pay for eligible healthcare expenses, including your health plan deductible. Plus, your yearly contributions can earn interest and be carried over from year to year.
How it Works...
- Eligibility: Any individual that is covered by a QHDHP, is not enrolled in Medicare, is not covered by other health insurance and can't be claimed as a dependent on someone else's tax return.
- Deductible: Deductible of Qualified High Deductible Health Plan (QHDHP): Minimum deductibles of $1,200/single, $2,400/family (2010 amounts) are required.
- Account Contribution: Maximum account contribution is $3,050 individual/$6,150 family (2010 amounts). Additional catch up contributions allowed for those ages 55 and older.
- Account Funding: The HSA is funded by either the employee or employer. If the employer makes the contribution, it is tax-deductible and must be the same amount for all employees.
- Account distributions are tax-deferred for qualified medical expenses (IRC Section 213d) and certain insurance premiums, and grow tax-free.
If you decide or can enroll in an HSA, you need to consider the following:
1) Select a qualified high-deductible health plan (QHDHP) A QHDHP is required to open an HSA. Once a QHDHP is selected, the HSA may be opened.
2) Set up the HSA Once approved for medical coverage, you submit to the HSA administrator the HSA enrollment form (provided by Medical Mutual), the required account opening materials including and required deposits.
3) Use the HSA Once the HSA is opened, a welcome kit is sent to the account holder. The kit included a debit card that may be used to pay for qualified medical expenses. Once the account is opened, deposits can remain in the bank account, or there is a range of investment options depending on the bank selected. Statements are sent to account holders.
Additional Info...
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QHDHP: A QHDHP is a comprehensive major medical plan that meets federal requirements to set-up a health savings account. QHDHPs offer premium savings and considerable discounts for physician services and prescription drugs, in exchange for higher deductibles.
- Maximum combined out-of-pocket expenses of co-insurance and deductible of $5,950 individual/$11,900/family (2010 amounts) applies to in-network expenses.
- Medical Mutual offers HSA administrators to select for HSA compatible plans.
HSA Administration
Medical Mutual members are offered a choice in HSA administration. HSA administration at these three banks comes with no set up or monthly fees while covered by a qualified high deductible plan from Medical Mutual. Regular bank fees apply such as for bounced checks will apply.
There are currently three qualified banks to choose from:
1) First Horizon Msaver - a subsidiary of First Horizon Nation Corporation that initially established its presence in 1997 as an administrator of Medical Savings Accounts. To contact First Horizon Msaver, please call 866/889-8584
2) PNC Bank - Headquartered in Pittsburgh, Pennsylvania, PNC is the fifth largest bank in the United States and one of the nation's largest financial holding companies providing a full range of banking and financial services. To contact PNC Bank, please call 866/966-4729
3) Wells Fargo - Wells Fargo Health Benefit Services (HBS) specializes in the administration of HSAs, and has been a provider of healthcare spending accounts since 1987. Wells Fargo was one of the first banks to offer HSAs when they became available in 2004. Features include electronic enrollment, investment options and finder's fees. Contact 866/449-9929 (groups) or 866/890-8309 (individuals) to learn more.
How to open your HSA
If you wish to open an account check with your broker or sales representative or learn more about each of the bank's features.
To learn how to use an HSA, click here.
For Sales Information: 800/245-5272
Groups may also
submit for a quote here.
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