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SMALL GROUP HEALTH SAVINGS ACCOUNTS



HEALTH SAVINGS ACCOUNTS - Empowering our Members to Make the Most of their Health Care Dollars

For employers with 50 or fewer full-time equivalent (FTE) employees, Minuteman Health offers several high-deductible health plans that can be paired with Health Savings Accounts (HSAs).
 
HSAs can empower your employees to maximize savings and build a financial reserve for their future. Once enrolled, they are free to open an HSA on their own through our partnership with HeathEquity or any other administrator of their choice.

If you’re an employer with 51 or more FTE employees, we offer alternative funding options through our partnership with Benefit Strategies. More information coming soon.

FINANCIAL FLEXIBILITY. FINANCIAL SECURITY.

HSA-compatible health plans typically have lower monthly premiums than traditional health plans. The money your employees save on lower monthly premiums can be deposited into an HSA (maximum annual limits apply).

Once enrolled in an HSA, your employees can benefit from a tax-sheltered savings account which can be used to pay for qualified medical expenses both now and in the future. Here’s how:

  • Contributions to an HSA are tax-deductible to the account owner (maximum annual limits apply). The interest earned on HSA balances grows tax-free*

  • Distributions from an HSA are tax-free* for qualified medical expenses as defined by the IRS*

  • Each employee OWNS their account and ALL the funds in it**

  • HSA balances roll over from year to year without penalty

  • HSA balances are 100% portable, meaning the account remains available for qualified medical expenses even if the employee changes health plans, retires or leaves the company

  • Employees may have access to investment options through HSA vendors (including HealthEquity) See FAQs section below (Can I make investments using HSA funds?) for more information.

HEALTH EQUITY - Administering HSAs since 2002

For more information on Health Savings Accounts including contribution limits, tax implications and monthly fees, as well as useful videos and enrollment forms and documents, visit Health Equity. Remember, your employees can enroll in an HSA through HealthEquity or another administrator of their choice.  
 
New Hampshire members and consumers:
 
Use this form if you enrolled or are enrolling your employer group through HealthCare.gov.
Use this form if you enrolled or are enrolling your employer group through the Minuteman Health Storefront, eHealth or another private exchange.
 
Massachusetts members and consumers:
 
Use this form if you enrolled or are enrolling your employer group through the Health Connector.
Use this form if you enrolled or are enrolling your employer group through the Minuteman Health Storefront, eHealth or another private exchange.


MANAGING AN HSA WITH HEALTH EQUITY - FAQs

As an employer, am I responsible for FICA taxes?

You, as the employer, do not pay FICA taxes on the money that you contribute to your employee’s HSAs through a cafeteria plan. A Cafeteria Plan is a reimbursement plan governed by IRS Section 125 which allows employees to contribute a certain amount of their gross income to a designated account or accounts before taxes are calculated.
 
How much can an employee contribute to an HSA?

For 2017, the Internal Revenue Service allows HSA holders to contribute up to $3,400 for an individual and up to $6,750 for a family in their account. This limit includes contributions made by others on the account holders’ behalf. HSA holders 55 and older get to save an extra $1,000 annually, which means $4,400 for an individual and $7,750 for a family. However, because an HSA account is in an individual’s name, only the person age 55 or older can contribute the additional $1,000 in his or her own name. For example, if both husband and wife are age 55 or older, they must have two HSA accounts if they want to contribute the maximum. These contributions are 100% tax-deductible from gross income.
 
What is the monthly fee for a HealthEquity HSA?

HealthEquity charges $3.95 per month for ongoing maintenance of Health Savings Accounts. This monthly fee is separate from the monthly premium you pay for your Minuteman Health plan, and can be paid by the employer or the individual employee. There is no initial account setup fee charged by HealthEquity.

What is considered a qualified medical expense?
 
Qualified medical expenses are designated by the IRS and they include medical, dental, vision and prescription expenses. The best way to find out if a particular service is considered a qualified medical expense is to visit Health Equity - Qualified Medical Expense List.
 
Can I make investments using HSA funds?

Yes, if you choose to set up your HSA through our HSA administrator, Health Equity, you can invest your HSA funds once you reach a $2,000 account balance. For more information, take a moment to review Health Equity’s Investment Guide.


 


*HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

**No permission or authorization from the IRS is necessary to establish an HSA. You set up an HSA with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs). The HSA can be established through a trustee that is different from your health plan provider. Your employer may already have some information on HSA trustees in your area.