10 page PowerPoint presentation on Health Savings Accounts

advertisement
Health Savings
Accounts
Who is First American Bank




Strategic Focus
 For over 30 years, we have built our business one satisfied customer at a time
based on the philosophy that the needs of our customers come first.
Best of both worlds
 Big bank financial services with the personal attention only a smaller bank
can provide
Size
 More than $2.5 billion in assets. Eleventh largest bank in Illinois, with nearly
50 branches
 $35 million in our HSA portfolio with over 17,000 accounts nationwide
Ownership
 Privately held financial institution
Member FDIC
Our HSA Department
Team:

Meg Smadi, HSA Account Manager

Adam Fingerhut, HSA Account Manager

James Wargas, Executive Vice President

Dedicated HSA Support Group:
100+ personal bankers and managers throughout our 49 branches
Member FDIC
Why open an HSA?

High deductible (HDHP) insurance protects you from high medical
bills.

HDHP generally costs less than traditional coverage; money saved on
premium can be put into HSA.

Contributions are tax deductible.

Funds can be withdrawn from your HSA (tax-free) to pay for qualified
medical, dental, or vision expenses.

After age 65, HSA funds can be used for non-qualified expenses
without penalty. Only income tax is assessed.

HSA funds earn interest tax-free.

Funds rollover year after year – “use it or keep it”

HSA money is yours – take it with you if you change jobs or health
coverage.
Member FDIC
HSA Eligibility
 Must be covered by a qualifying High Deductible Health
Plan (HDHP)
 You are not enrolled in Medicare
 You have no other health insurance that is not an HDHP
(excluding accident, vision, dental, long term, disability)
 You cannot be claimed as a dependent on someone else’s
tax return
Member FDIC
HSA Contributions
What is the maximum I can contribute to my HSA?


2011 Limits

Individual - $3,050

Family - $6,150

Catch Up Contribution - $1,000
2012 Limits

Individual - $3,100

Family - $6,250

Catch Up Contribution - $1,000
Member FDIC
What can the funds in my HSA be used for?

Examples of qualified expenses:

















Acupuncture
Ambulance
Annual Physical Exam
Bandages
Chiropractor
Contact Lenses
Dental treatment
Diagnostic Services
Eyeglasses
Gynecologist
Hospital Services
Laboratory Fees
Nursing Services
Obstetrician
Optometrist
Orthodontist
Pediatrician














For a complete list, go to www.irs.gov.
Publication 502
Member FDIC
Podiatrist
Prenatal Care
Prescription Medication
Psychiatrist
Psychoanalyst
Psychologist
Specialists
Surgery
Therapy
Vaccines
Vision Correction Surgery
Weight Loss Programs
Wheelchair
X-Rays
Role of the Bank
Member FDIC
Role of First American Bank

The bank is the custodian of the account

The bank has reporting requirements to the IRS

The bank has to correct excess contributions

The bank will establish the account and answer any questions the
customer may have about their account.

The bank does not:

Determine if withdrawals are qualified expenses

Please note: If funds are withdrawn for reasons other than to pay for qualified medical
expenses by someone under age 65, the amount withdrawn is taxable and subject to a
20% penalty by the IRS in 2011/2012. After age 65, there is no penalty for nonqualified withdrawals, but amounts are taxable.
Member FDIC
Bank Products and Account Features
Member FDIC
Bank Products and Account Features
Health Savings
Account
Health SavingsPLUS
account
Monthly Account Fee
$0 *
$0
Monthly Investment Fee
NA
$ 4.00
Debit Card(s)
Free
Free
On-Line Banking/Bill Payment
Free
Free
E-Statements
Free
Free
Pays Interest
Yes
Yes, on funds in the
checking portion
Investment Option
No
Yes
Minimum Deposit Required
No
No
* A $3 monthly fee applies if the account holder elects to receive paper statements. This fee will be waived, if the combined
balance in any First American Bank Checking and/or Savings account is greater than $2,000 or if the customer elects to receive
eStatements only.
Member FDIC
HSA PLUS Information
Member FDIC
Bank Products and Account Features
Health SavingsPLUS Account

The Health SavingsPLUS account is compromised of 2
parts:



A checking portion - This is an interest bearing account that works just
like a traditional checking account - you can write checks, make deposits,
use your debit card. Funds in this portion of the account are FDIC
insured.
An Investment portion - You can invest in a variety of nationally
recognized mutual funds. Funds in the investment portion are not FDIC
insured, may lose value and are not bank guaranteed.
In order to invest in the Health Savings Account Investment
Account, participants need to have a minimum $2,000 balance in
the checking portion of their Health SavingsPLUS account.
Funds in the investment portion of your Health SavingsPLUS account are not FDIC Insured, May Lose Value and are Not Bank Guaranteed.
Member FDIC
Bank Products and Account Features
Health SavingsPLUS Account Example

Step 1: The balance in the checking portion of the Health SavingsPLUS account
grows to $4,200.
TOTAL BALANCE $4,200
$4,200.00
Checking portion
$0.00
Investment Portion
Funds in the investment portion of your Health SavingsPLUS account are not FDIC Insured, May Lose Value and are Not Bank Guaranteed.
Member FDIC
Bank Products and Account Features
Health SavingsPLUS Account Example

Step 2: The account holder decides to invest the maximum amount of $2,200
(= $4,200 (Total balance) - $2,000 (balance required in checking portion))
TOTAL BALANCE $4,200
$2,200.00
$2,000.00
Checking portion
Investment Portion
Funds in the investment portion of your Health SavingsPLUS account are not FDIC Insured, May Lose Value and are Not Bank Guaranteed.
Member FDIC
Bank Products and Account Features
Health SavingsPLUS Account Example

Step 3: A medical bill for $500 needs to be paid. The funds will be debited from
the checking portion of the account. Note: more money can only be invested
once the balance in the checking portion exceeds $2,000 again.
TOTAL BALANCE $3,700
$2,200.00
$1,500.00
Checking portion
Investment Portion
Funds in the investment portion of your Health SavingsPLUS account are not FDIC Insured, May Lose Value and are Not Bank Guaranteed.
Member FDIC
Enrollment Process
Member FDIC
Enrollment Process



Submit application
 Online or paper
Time Line for new accounts
 Once the application (including signed account adoption agreement document)
has been submit, processing will begin. All applications will be open within 2-3
business days as long as information is accurate, complete and passes our
verification system.
Debit Card / Checks
 A debit card is ordered once the application has been processed and the account
established. Debit cards will be received within 7-14 business days of the account
being established. Debit Cards are mailed separately (for your security) from the
checks or new account welcome package and are in blank white envelopes
(please do not discard as junk mail).
Checks, if requested, will be ordered after the first deposit has been posted to the
account.
New Account Welcome package
 Employees will receive a white package containing several disclosures. This
package will also contain their account number.


Member FDIC
Employer Funding Options
Member FDIC
Funding Options

Automated Clearing House (ACH):
Method 1:

ACH transfer can be originated by your bank or
a direct deposit payroll system. The payroll field
for the Health Savings Account is an additional
deduction similar to your 401k. In order to send
an ACH you will need the account and routing
numbers for the employees.
Member FDIC
Funding Options

Automated Clearing House (ACH):
Method 2:

First American Bank can accept an ACH transfer
or wire transfer to a central holding account. An
employer contribution form, which will be
provided to you, will need to be completed and
sent the same day or a day prior to the
transaction posting in our account. Once the
funds have been received we will divide the
monies per the contribution form into the
employees individual accounts.
Member FDIC
Funding Options

Ca$hTrac (fees apply)

Ca$hTrac is First American Bank’s
proprietary online business banking
system. Ca$hTrac will allow you to
directly debit an operating account and
credit employees’ individual accounts
within 48 hours.

Speak with your HSA account manager
for details.
Member FDIC
Funding Options

Check
 A check, accompanied by the employer
contribution form, can be mailed to the
bank. Please make checks payable to First
American Bank.
 Employer contribution form is required
to ensure funds are properly allocated to
the individual employee’s accounts.
Member FDIC
Employee Funding Options
Member FDIC
Employee Funding Options

Check

A check made payable to either
yourself or First American Bank may
be mailed to the bank or done in any
one of our nearly 50 branches. Please
either use our Deposit Form or note
the account number on the memo line
of the check.
FDIC
Member FDIC
Employee Funding Options

Automatic Transfer

You may complete the HSA Auto Savings
Form which will allow First American Bank
to automatically deduct funds from your
personal checking or savings account on a one
time or recurring basis.
Member FDIC
A Practical Example:
Can I Visit Any Doctor?
You visit your
in-network
doctor
Member FDIC
What Do I Have To Pay At The Time Of My Visit?
You pay
nothing during
your visit.
Member FDIC
How Do I Get Billed?
Your doctor’s office
sends your bill to
your Health
Insurance Carrier.
Member FDIC
Who Receives The Bill?
The insurance
carrier receives the
bill and applies the
negotiated network
discount
That amount is also also applied to your deductible.
Member FDIC
Insurance Carrier Sends An
Explanation Of Benefits (EOB)
The insurance
carrier sends an
EOB to you and
your doctor
Member FDIC
How Is The Doctor Paid?
You pay using your HSA debit
card, a check,
or online bill payment.
Member FDIC
Where Does The Money Come From?
The money comes out
of your HSA account
or personal funds.
Member FDIC
What Happens Once Your Deductible Is Met?
Your health
insurance plan
works like a
typical PPO.
Member FDIC
What Happens Once Your Deductible Is Met?
Your visit to the doctor works
the same way.
You will receive your EOB, showing the
percentage paid by your plan
You can use funds in your HSA
account to pay for other qualified
medical expenses.
Member FDIC
How Do I Reimburse Myself For Out of
Pocket Costs?

You may reimburse yourself for qualified medical
expenses using the following methods:

Withdraw money from an ATM using your HSA Debit Card

Send yourself an online bill payment

Write a check from your HSA account

Step into one of our 49 branch locations to perform a
withdrawal
Member FDIC
What Happens If I Have Money Left Over?
Money left in your account
continues to roll over year after
year. This allows you to
accumulate a nest egg for future
medical expenses, tax free.
Member FDIC
What Happens If I Have Money Left
Over When I Retire?
Once you reach age 65, funds
can be withdrawn for nonmedical expenses without
penalty.
Your HSA is a great potential
savings and investment vehicle!
Member FDIC
Helpful Information / Contact Information
Meg Smadi
Dedicated HSA
Toll Free Call Center
HSA Manager
First American Bank
1650 Louis Avenue
Elk Grove Village, IL 60007
(847) 586-2293 Voice and Fax
msmadi@firstambank.com
(866) 449-1150
HSA Department Fax
(847) 264-2308
Corporate P.O. Box
Adam Fingerhut
First American Bank
P.O. Box 0794
Elk Grove Village, IL 60009
HSA Manager
First American Bank
1650 Louis Avenue
Elk Grove Village, IL 60007
(847) 586-2266 Voice and Fax
afingerhut@firstambank.com
Corporate Headquarters:
First American Bank
1650 Louis Avenue
Elk Grove Village, IL 60007
(847) 427-5000
www.firstambank.com
Member FDIC
Any Questions?
Download