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Establishing HSA Accounts for Your Employees
Letter from U.S. Bank to Educational Entities
Below is a letter to Educational Entities from U.S. Bank introducing their Health Savings Accounts (HSAs). It includes information on how to establish these accounts for your employees and links to the required forms. To ensure your accounts are in place by October 1, 2011, please submit the forms to U.S. Bank by July 15, 2011.
 
Scroll down past the letter for additional guidance on employer and employee HSA contributions.

Dear Benefit Administrators:
 
We have exciting news about the Health Savings Account (HSA) program that works in conjunction with your OEBB ODS Medical Plan 9 insurance offering.   
 
Beginning October 1, 2011 OEBB is partnering with U.S. Bank to provide an HSA program with superior capabilities and easy navigation.
 
Benefits for YOUR MEMBERS
  • HSA advantages
  • Triple-tax savings
  1. Contributions are tax-deductible
  2. Tax-free earnings
  3. Tax-free withdrawals from an HSA when used to pay for qualified medical expenses
  • Control over their healthcare spending
  • No “use-it-or-lose it” requirement
  • The account is owned by your members and goes with them even if they change jobs or insurance coverage
 
  U.S. Bank Advantages:
  • Online education, including an interactive demonstration on how a High Deductible Health Plan (HDHP) and HSA work together
  • In-person open enrollment support
  • Online Bill Pay
  • Direct deposit reimbursement option for out-of-pocket expenses
  • Access to important healthcare tools to manage healthcare spending
  • Online HSA management tools, such as the ability to update personal profile information, order new cards, and view detailed transaction history
  • Ability to invest HSA funds in excess of the $2,500 account threshold into an integrated investment solution
  • Accounts are FDIC insured (investment holdings are not FDIC insured and subject to normal market risk)
  • No hidden fees for having, using, replacing or getting extra debit cards
 
Benefits for YOU
In addition to being able to offer low-premium-cost insurance to your members, with the benefit of an easy-to-use and robust HSA website, you will receive access to a dedicated Employer Portal, which includes tools and resources to help you manage your HSA program more efficiently.  With a click of a mouse, you will have access to:
  • Easy enrollment and contribution processing options
  • Automated funding mechanism of payroll or employer contribution processes
  • Enhanced employer notices and reports
 
What you need to do now
  • If you have not done so already, you must select ODS Medical Plan 9 as one of your insurance offerings if you want to offer the U.S. Bank HSA.
  • For those who have chosen or will choose ODS Medical Plan 9 for your entity, please complete these three forms:
1.      HSA Design Guide – used to set up the employer account on our system
2.      HSA Agreement – facilitates contribution processing at the employer level
3.      HSA ACH Agreement – used to facilitate funding for HSA contributions
 
Once complete forward the three (3) signed documents by July 15, 2011 to: 
      Fax:  888-410-6032           or         email: usbimplementation@hcbconsumerservices.com
                                                 

MORE information to come – what you can expect
We’re excited about offering our HSA product and services to you and your members and look forward to building a strong, rewarding relationship.  More details on our services will come in August including implementation support, Employer Portal access and training.  
Remember to return the HSA Design GuideHSA Agreement and HSA ACH Agreement by July 15, 2011.  
 
If you have any questions, please call Jason Gross, U.S. Bank Implementation Specialist at 701-239-6321, Monday – Friday, 6:00 a.m. – 3:00 p.m. PST.
 

U.S. Bank Healthcare Payment Solutions

Contribution Guidance
U.S. Bank has provided the information below to assist educational entities with contribution questions.
 
Employer and Employee Contributions:  Your IRS calendar year maximums include all contributions made, including employer.

Employer Contributions:  If you wish to make employer contributions to your employees' HSA you either need to make comparable contributions to each employee (as defined below) or make the contributions as part of a cafeteria plan.

Comparable contributions:  Your contributions are comparable if they are either:
  • The same amount, or
  • The same percentage of the annual deductible limit under the HDHP covering the employees.
 
Comparable Participating Employees: 
  • Are covered by your HDHP and are eligible to establish an HSA
  • Have the same category of coverage (either self-only or family coverage) and
  • Have the same category of employment (part-time, full time, or former employees)
The comparability rules do not apply to contributions made through a cafeteria plan.


Employee Contributions: If you are going to allow employees to make contributions to their HSA through a cafeteria plan, you will need to capture their deferral amount.  We have provided a sample form you can use as a starting point. You can make changes to the form to make it applicable to your circumstances.


See IRS Publication 969 or a tax consultant for guidance: http://healthcare.usbank.com/files/content/files/p969_-02010.pdf