Blue
Cross And Blue Shield
Health Savings Accounts (HSAs)
Recently approved by the U.S. Congress, a health savings
account (HSA) is the newest way to help you manage health care
costs and save for future qualified medical expenses. An HSA
is an interest-bearing tax-exempt savings account that’s
coupled with an economical, HSA-qualified high-deductible
health plan (HDHP).
HSAs provide you with more control over
your health care dollars.
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1. Contributions are tax deductible 2. Money you put in grows tax-free. 3. Withdraw money any time for expenses not covered by health insurance, which may include:
4. Nearly everyone qualifies. 5. HSAs are permanent. 6. Tax-deductible contributions are allowed up to the minimum of a qualified health insurance plan deductible. 7. Excess funds may be rolled over into a traditional IRA. 8. Roll-overs from an MSA are permitted, tax-free. 9. If you have an HSA, expenses for family members can be paid for even if they are not on your health insurance. 10. HSAs finally make health care affordable!
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HSA Basics
You may use the HSA to pay for qualified medical
expenses now and after retirement for you, your spouse
and qualified tax dependents.
HSAs are tax-deductible, interest-bearing accounts that
permit unused funds to carry over from year to year,
even if you change employment.
Contributions, withdrawals to pay for qualified medical
expenses and interest earned on contributions are
tax-free up to the amount set by federal law.
The account is permanent—all money and interest earned
belong to you.
Contributions
You and other individuals may make tax-advantaged
contributions, up to certain limits, to your HSA.
If you’re under age 65, you are eligible to contribute
to an HSA if:
You are covered by a qualifying High-
Deductible Health Plan (HDHP);
You are not entitled to Medicare;
You are not eligible to be claimed as a dependent on
someone else’s tax return; and
You do not have other health insurance (except coverage
such as dental, vision and disability).
If you’re over age 65 and not eligible for Medicare or
not enrolled in Medicare Part A or Part B, you’re still
eligible to establish or contribute to an HSA.
For 2006, annual contributions may be made up to 100
percent of the HSA-qualified health plan deductible,
limited to $2,700 for a self-only policy and $5,400 for
a family policy. Deductibles, out-of-pocket maximums and
contributions are inflation-adjusted annually.
Individuals between the ages of 55 and 65 and over age
65 who are not entitled to Medicare may make additional
“catch-up” contributions of up to $700 in 2006,
increasing to $1,000 annually in 2009 and thereafter.
Distributions
HSA distributions are tax-free if they are used to pay
for qualified medical expenses. Distributions made for
any other purpose are subject to income tax and a 10
percent penalty.
Once a person is 65 years old, the money may be used to
pay for medical expenses and certain insurance premiums,
such as Medicare Parts A, B and D, Medicare HMO, and an
employee’s share of retiree medical insurance.
Distributions may also be made for non-qualified medical
expenses without the 10 percent penalty.
Custodian and Financial Services Provided by JP Morgan Chase
Bank
Anthem Blue Cross and Blue Shield has aligned with JP Morgan
Chase Bank to supply HSAs to members. Chase offers a Visa®
debit card for easier access to the funds in your HSA,
check-writing availability, online account management services
and other investment options.
On July 1, 2005, HSA accountholders may invest in various
mutual funds offered by Chase. Accountholders must have at
least $2,000 in their HSA for transfer into an investment
account.
How It Works
You enroll in an Anthem Blue Cross and Blue Shield
HSA-qualified HDHP. You’ll pay lower premiums and have
an account designed to help you pay for qualified
medical expenses.
You establish an interest-bearing HSA.
You and other individuals may make tax-advantaged
contributions to your HSA, up to certain limits (as
described in Contributions above).
You may use your Chase HSA debit card or personal check*
to pay for qualified medical expenses. Chase will
provide a monthly statement for your HSA account.
* Check processing fees may apply.
You will receive details about setting up an HSA with Chase
upon approval of your enrollment in an Anthem HSA-qualified
HDHP. Or, for more information, call Chase at 800-778-0898
toll free Monday-Friday, 6 a.m.-6 p.m. Mountain Time.
Return To Top of Page Need More Information Go To Benefits at a Glance
Important:
This plan overview is intended to be a brief outline of
coverage. All terms and conditions of coverage, including
benefits and exclusions, are contained in the Certificate,
which shall control in the event of a conflict with this
overview.
These programs may be terminated or modified at the discretion
of Anthem Blue Cross and Blue Shield.
The brief description of the plans provided through Anthem Blue Cross and Blue Shield are a general guide for more detailed description please contact Denise Brown about coverage, benefits, limitations, exclusions and any additional information about cost and enrollment.
Forging a New Path to Better Health Care,
Denise Brown Owner/Broker
Direct Health & Life of Nevada
Independent Authorized Nevada Agent
Phone: (702) 349-7579
email: dee2000@cox.net
Links to U.S. Websites
U.S Department of the Treasury (HSA) page:
www.ustreas.gov/offices/public-affairs/hsa/index.html
U.S.Internal Revenue Service publication 502 (medical & dental expenses):
www.irs.gov/pub/irs-pdf/p502.pdf