Health Savings Account
Giving you more control over your healthcare resources
The Health Savings Account is available to participants in the Consumer-Directed Health Plan. An HSA is a special tax-advantaged bank account in which you and TVA can make contributions that you can use to pay for qualified medical expenses. You are the account owner, so you make the decisions on how to manage the money in your account.
Opening an HSA
Beginning Jan. 1, 2010, the HSA will be serviced by HSA Bank, a division of Webster Bank, N.A., Member FDIC. TVA will make a contribution of $600/individual or $1,200/family to the HSA after CDHP members have opened their HSA with HSA Bank.
To be eligible for an HSA, the IRS has certain requirements:
- You must be covered by a qualified high-deductible health plan. This means you must be enrolled in the CDHP medical option to be eligible for the HSA.
- You cannot be enrolled in Medicare.
- You cannot be claimed as a dependent on someone else’s tax return.
- You cannot be covered by another health plan that is not HSA-qualified (for example, a traditional copay plan, TRICARE, etc. There are some exceptions, including vision coverage, dental coverage, accident and disability coverage, and employee assistance programs).
In order to contribute to or receive TVA’s contribution, your HSA must be established and opened.
Here’s how to open your HSA:
Employees: You will open your HSA through TVA’s online Open Enrollment site available through eBenefits on InsideNet. Under Self Service Solutions, click Benefits, then eBenefits, then Open Enrollment. If you enroll in the CDHP option on the Medical Plan screen, you will be prompted with the option of opening your HSA with HSA Bank. The site is available from Oct. 26 through Nov. 6.
Retirees: You will receive HSA enrollment information with your Medical Plan 2010 booklet that is mailed to your home.
In late December, you will receive a welcome kit containing important information about your account, including how to designate authorized signers and beneficiaries. For security purposes, your HSA Bank VISA® Debit Card will arrive in a separate package within 5-10 business days after you receive your welcome kit with tips on how to start using your card to pay for qualified medical expenses.
If you want to contribute to your HSA, here’s how:
Employees: You can set up pre-tax payroll deductions to contribute to your HSA. You can do this as part of open enrollment when you open your account on the Online Enrollment site. Your contributions will start on your first paycheck in January. Or, you can set up or change your contributions at any time during 2010. Here’s how:
• Access InsideNet. Click Self Service Solutions.
• Enter your Employee ID and PIN.
• Click Money.
• Click Health Savings Account.
Retirees: You can mail contributions using a deposit slip from your HSA checkbook or automatically transfer monthly contributions from a personal checking or savings account.
Now you’re ready to use your HSA
You can use your HSA Bank VISA® debit card to pay for qualified medical expenses for yourself, spouse and dependent children. Checks also are available for a fee.
If you use your HSA money for purposes other than to pay for “qualified medical expenses,” it will be taxable as income and subject to an additional 10 percent tax penalty. After you turn age 65, the 10 percent additional tax penalty no longer applies. Keep copies of your medical receipts to verify how you use your funds. You are responsible to the IRS for all types of withdrawals made from your HSA.
The money in your HSA earns tax-free interest daily. You also can invest your money in TD AMERITRADE investment accounts and Mutual Fund Selection investment accounts made available through HSA Bank. You don’t need a minimum balance to invest.
Call HSA Bank at 1-800-357-6246, Monday–Friday, 8 a.m.–10 p.m., Eastern time or visit www.hsabank.com/tva (available beginning the week of Oct. 13). Questions can be directed to a customer-service representative or by e-mail at firstname.lastname@example.org.
Employees: Review the Open Enrollment newsletter you’ll receive at your home. A list of frequently asked questions is available on eBenefits on InsideNet.
Retirees: Review the Medical Plan 2010 booklet you’ll receive at your home. A list of frequently asked questions is available on www.tvaretirees.com under Health Care Benefits.
A list of qualified medical expenses is available on the IRS Web site, www.irs.gov, Publication 502, “Medical and Dental Expenses.”