Consumer Option FAQs

1. HSA Basics

Learn more about HSA.

2. Activating Your HSA

In order for MHBP to make the Plan contribution, you will need to establish your health savings account (HSA).  To set up your account, you should have received an HSA Enrollment Form as part of your Welcome Kit.  Complete this form and return it to the address provided on the form.  Once returned,  you will receive your HSA Debit Visa card.  To access your HSA account information online, you will need to sign into My Online Services to access HealthEquity and follow the registration procedures.

3. Contributions to Your HSA

MHBP will contribute up to $845 for self-only coverage, or up to $1,690 for family coverage per year to your HSA.

Plan contributions are made in monthly increments of $70.41 for self-only coverage, or $140.83 for self and family coverage.

You may make a contribution to your HSA each month you're eligible, up to $2,205(self-only) or $4,460 (self and family) each year.

Your contribution may be made in one lump sum at the beginning of the coverage year, or paid out in different increments throughout the course of the coverage year. Your eligible family members may also contribute to the account on your behalf.

For 2010 the maximum annual contributions to your HSA (plan contributions and your contributions combined) are:
$3,050 for self only or $6,150 for self and family coverage. These amounts will be increased for inflation in future years.

Please note - you are responsible for keeping track of your contribution totals, which must not exceed the IRS limit.

4. HSA Account and Bank Routing Numbers

To determine your 12-digit HSA account number, you can reference your account statement or log in to My Online Services  where you can access your statement online. The routing number for your HSA is available online. You should use these numbers when depositing funds into your account.

5. Accessing Your HSA Funds

You may access funds in your HSA for qualified medical expenses in two ways:

• Using your MHBP HealthEquity Debit Card
• HSA Withdrawal Form (obtain from HealthEquity)

6. How to use your MHBP HealthEquity Visa Debit Card

You have the freedom to spend your HSA on the qualified medical expenses that you consider are most important to you.

• Once you have returned your banking paperwork and your HSA has been established, you will receive your Visa Debit card.
• You can use your Visa debit card at the pharmacy to pay for prescription drugs. HSA funds – when available – will be automatically withdrawn from the HSA when you present your card at the pharmacy counter.
• When you get a medical bill from a health care provider, please allow for the provider to bill the insurance prior to providing your HSA debit card information to pay your bill.  This will allow for any discounts to be applied to your services before you make a payment.  Also, depending on how your HSA account is set up, We will either pay the provider directly from your HSA after any applicable discounts are applied, or leave the choice to you  whether to use your HSA or other funds. Your doctor's office will typically send you a statement after the insurance discount has been applied to advise of you outstanding balance (if any). 
• As the account holder, it is your responsibility to make sure that your HSA disbursements are for qualified medical expenses to be eligible for tax-free treatment.
  Please note – You have the ability to withdraw funds at any time for any reason subject to any specific rules related to the use of the debit card that the HSA bank or the Plan may impose.
  If you withdraw money for items other than qualified health expenses, it will be subject to income tax and – if you are under 65 years old – an additional 10% penalty tax on the amount withdrawn.

7. Qualified Medical Expenses

You may use the funds in your HSA to pay for qualified medical expenses.

For your convenience, we have included a handy list of some of the most common qualified expenses.

For complete detailed information, refer to “IRS Publication 502 – Medical and Dental Expenses,” Catalog number 15002Q.

When you incur expenses for qualified medical expenses not covered by the MHBP Consumer Option HDHP, such as dental care, orthodontia and over-the-counter items, you may submit a Withdrawal Form to the address provided on the form.

8. HSAs and FSAs

OPM offers a Limited Expense Health Care Flexible Spending Account (LEX HCFSA) for employees in FEHB high deductible health plans (HDHP) with a health savings account (HSA).

• The Limited Expense Health Care Flexible Spending Account (LEX HCFSA) is for eligible dental and vision expenses only.
• HSA enrollees are not eligible for general health care flexible spending accounts (HCFSA), according to Section 125 of the Internal Revenue Code. However, you can have both an HSA and a limited purpose HCFSA.
• With the LEX HCFSA, HSA enrollees will be able to set aside pre-tax FSA dollars for dental and vision services, just as non-HSA enrollees can.

For further information, visit the OPM website.

 

9. Health Reimbursement Arrangements

If you are not eligible to establish an HSA, the Plan will provide you with a Health Reimbursement Arrangement (HRA).

• At the start of the Plan year, the MHBP will credit your HRA with $1,690 for family coverage or $845 for self-only coverage.
  Please note – enrollee contributions to an HRA are not permitted.
• These funds can be used to pay for any of your health-related expenses, such as office visits, deductibles and prescription drugs.
• When you or a health care provider submit a claim to the Plan for qualified medical expenses, funds will automatically be withdrawn from your HRA and sent to you or your provider as payment.
• Likewise, when you purchase prescription drugs from a retail pharmacy, funds will automatically be withdrawn from your HRA at the time of purchase to cover out-of-pocket expenses such as deductibles and copayments.
• Once your HRA has a zero balance, you will be required to pay for covered medical and/or pharmacy related services until you reach your deductible.
• Remember, you will save money – and the funds in your HRA will go further – when you receive care from network providers and use generic medications.
• When you incur expenses for services not covered by the MHBP Consumer Option HDHP, such as orthodontia and Medicare premiums, you may submit a Reimbursement Form to the address provided on the form.