Win-win benefits
of a Regence health
savings account (HSA)
Flexible for employees.
Affordable for employers. Quality for both.
A health savings account (HSA) is an individual-owned medical savings
account paired with a low-premium, high-deductible health plan that,
together, give consumers greater flexibility—and more responsibility—over
their own health care funds:
Employees own their HSA account and all contributions.
Balances roll over from year to year.
After a certain balance, funds can be invested for potentially
greater earnings.1
Here’s why a Regence HSA plan might be the perfect fit for your company
and your employees.
How do HSAs work?
u Regence HDHP + HealthEquity® HSA
Regence BlueShield serves select counties in the state of Washington
and is an Independent Licensee of the Blue Cross and Blue Shield Association
Regence provides your employees’ qualified high-deductible health
plan (HDHP) and partners with HealthEquity, one of the largest HSA
custodians in the United States, to allow pretax contributions into
FDIC-insured health savings accounts.
1
Members should contact HealthEquity member services at 1 (866) 346-5800 or visit the
Investments section of the HealthEquity member portal to confirm their plan’s threshold.
Regence BlueShield
1800 Ninth Avenue • Seattle, WA 98101
10025rep09334-wa/07-15
u Rollover balances earn tax-free interest
HSA account balances can be used for qualified medical expenses, and
HDHP premiums are typically lower than conventional
health plans.
u Full basic coverage
All preventive services are covered, just like a PPO.
u Maximum HSA contribution limits
Many employers offer paycheck deductions. According to IRS
regulations, maximum contribution limits for 2015 are $3,350 for
individuals and $6,650 for families. At age 55, an additional $1,000
annual contribution is allowed.
What makes Regence HSAs great?
Automated eligibility
Integrated claims
%
Tax-free
interest
HSA
S
Powerful investment tools
and advisory services
FDIC-insured cash accounts
HSA
Debit cards for
convenient transactions
Support
24/7/365 support online
and via email/phone
Lets employees
save for future
medical costs
?
Regence HSA plan features
u HSA tax advantages
Employee and employer contributions to HSAs are tax-exempt.
u Tax-free interest
HSA balances earn tax-free interest. Once employees reach a determined
account balance, they can invest their HSA funds for better saving potential.
u Tax-free funds
If they’re used for qualified medical costs, HSA funds are free from federal
and most state income tax penalties.
u Tax benefit of HSAs vs. retirement accounts
MONEY IN
➟
TYPES OF ACCOUNTS
NOT TAXED
HSA
➟
MONEY OUT
NOT TAXED
If used for approved
medical expenses
TAXED
If used for nonmedical expenses
Access to Regence
in-network doctors
NOT TAXED
Traditional
IRA
TAXED
TAXED
Roth IRA
NOT TAXED
u Low cost, high returns
°
°
Low cost,
high returns
For both employers and employees, HSAs deliver the highest return on
investment, on average, among health care plans. Monthly premiums are
lower than most conventional plans.
u Security
HSA balances roll over from year to year. This lets your employees save for
future medical costs while managing their present-day health care.
u Employee-owned
Unlike flexible spending accounts (FSAs), employees own their HSA, even if
they change health plans, retire or leave their job.
u Access to Regence quality
Employers and employees get access to Regence in-network doctors.
u Full preventive coverage
HSAs cover all preventive services, accounting for employees’ basic
care just like a PPO. For employees who need no more than basic yearly
coverage, HSAs make sense.
What can HSA funds be used for?
Your employees can use their HSA funds to pay for qualified medical
expenses as defined by the IRS. These expenses can include their plan’s
out-of-pocket expenses (such as their deductible and coinsurance) plus
many services that the plan doesn’t cover. The following is a partial list of
common qualified medical expenses:
Alcoholism (rehab)
Ambulance
Amounts not covered under another health plan
Annual physical examination
Artificial limbs/teeth
Birth control pills/prescription contraceptives
Body scans
Post-mastectomy breast reconstruction surgery
Chiropractic care
Contact lenses
Crutches
Dental treatments
Eyeglasses/eye surgery
Hearing aids
Long-term care expenses
Medicines (prescribed)
Nursing home medical care
Nursing services
Optometry services
Orthodontia
Oxygen
Stop-smoking programs
Surgery, other than unnecessary cosmetic surgery
Telephone equipment for the hearing-impaired
Therapy
Transplants
Weight-loss program (prescribed)
Wheelchairs
Wigs (prescribed)
Case studies in cost-effectiveness
A small employer of 15 people can save money on premiums and decrease an
employee’s annual premium cost by switching to an HSA qualified health plan.
The employer can deposit $1,000 into each employee’s HSA and still save about
$2,000 per year.
Small company
Employees could see a lower out-of-pocket cost or sustain a balance in their HSA.
Employer
Conventional
Plan
HSA Plan
$24,980
$9,450
Annual Premium
Employer’s
HSA Contribution
$0
Tax Deductible
-$7,450
-$7,450+
$0
-$1,125
FICA Tax savings
Employer’s Bottom Line
$15,000
$17,530
Medium company
$15,875
Conventional
Plan
HSA Plan
Annual Premium
$560
$210
Annual Deductible
$500
$2,500
Employer’s
HSA Contribution
$0
-$1,000
$1,000
$1,000
$100
$0
$1,160
$210
Employee Benefit
$1,000 Medical Expenses
Coinsurance
Out-of-pocket Expense
A medium-sized employer of 65 people can save money on premiums and
decrease out-of-pocket expenses for employees by switching to an HSA qualified
health plan. The employer can deposit $750 into each employee’s HSA and still
save about $23,000 per year.
Employees could see a lower out-of-pocket cost and/or retain a balance in
their HSA.
Employer
Conventional
Plan
HSA Plan
$125,780
$58,000
Annual Premium
Employer’s
HSA Contribution
Conventional
Plan
HSA Plan
Annual Premium
$650
$300
Annual Deductible
$500
$1,500
$48,750
Employer’s
HSA Contribution
$0
-$750
-$41,690
-$41,690+
$750 Medical Expenses
$750
$750
$0
-$3,650
Coinsurance
$50
$0
$1,200
$300
$0
Tax Deductible
FICA Tax savings
Employer’s Bottom Line
$84,090
Large company
$61,410
Employee Benefit
Out-of-pocket Expense
A large employer of 200 people can save money on premiums and decrease
out-of-pocket expenses for employees by switching to an HSA qualified health
plan. The employer is able to deposit $1,000 into each employee’s HSA and still
save over $30,000 per year.
Employees could see a lower out-of-pocket cost and/or a growing balance in
their HSA.
Employer
Annual Premium
Employer’s
HSA Contribution
Tax Deductible
FICA Tax savings
Employer’s Bottom Line
Conventional
Plan
HSA Plan
$387,000
$171,000
Conventional
Plan
HSA Plan
Annual Premium
$650
$290
Annual Deductible
$250
$1,500
$0
-$1,000
$1,000
$1,000
$150
$0
$1,050
$290
Employee Benefit
$0
$200,000
Employer’s
HSA Contribution
-$136,030
-$136,030+
$1,000 Medical Expenses
$0
$250,970
-$15,000
$219,970
Coinsurance
Out-of-pocket Expense
Who is eligible for an HSA?
Anyone can purchase a qualified medical plan. But to enjoy the
savings and tax advantages of an HSA, they must meet federal
eligibility requirements:
Must be enrolled in a qualified High Deductible Health Plan.
Cannot be enrolled in Medicare.
Cannot be claimed as a dependent on another individual’s tax return.
Cannot have other health coverage that is not a qualified plan.
About HealthEquity
HealthEquity is one of the country’s largest FDIC-insured health savings
account custodian.
Our partnership with HealthEquity lets us offer this flexible, fully integrated
health care plan for a reasonable cost with low administrative hassle.
Present an HSA info session
We can help you explain the benefits of a
Regence HSA plan to your employees.
1-888-REGENCE
regence.com
HealthEquity.com
Educational videos and tutorials
Online/downloadable guides
24/7/365 help available online and by email or phone
Call HealthEquity customer service at 1 (866) 346-5800
10025rep09334-wa/07-15
© 2015 Regence BlueShield