Tips to maximize your HSA savings - PowerPoint Presentation

Slide1

Tips to maximize

your HSA savingsSlide2

Maximize your HSA opportunity

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Save now:

Lower monthly insurance premiumsHSA contributions aren’t taxedQualified medical expenses are tax-free1Save for the future:HSA funds roll over year after yearYou keep the money even if you changejobs or insurance plansTax-free interest earnedSimple investment options2Same: doctors, network, negotiated discounts

1. 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

.

2. Investments

available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC insured or guaranteed by HealthEquity, Inc..

HealthEquity

, Inc. does not provide financial advice. Slide3

Spend smart

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Costs for a specific procedure or medical test can vary by provider or facility, even under the same health plan.

Things to remember:Transparency toolsMajor proceduresProcedure

codes for price quotes

Stay in network Slide4

Spend smart: generic drugs

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Generic drugs typically cost

80-85% less than their brand equivalent.11. Source: https://www.fda.gov/downloads/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/understandinggenericdrugs/ucm305908.pdfSlide5

Spend smart: shop around

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Visit

LowestMed.com to compare prices between brand & generic as well as between your local pharmacies.Use a price transparency tool to compare medical procedure prices such as HealthcareBluebook.com.Shop with confidence. Discount online retailer HSAstore.com helps

ensure that you purchase qualified products at great prices.

HealthEquity

, Inc. is not affiliated with the aforementioned companies and is not responsible for their policies or services.Slide6

Spend smart: care facilities

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A visit to the ER can cost up to

five times more than a visit to an urgent care facility that provides the same treatment1Reason for visitER visit2Urgent care visit2

Allergies

$345

$97

Acute

bronchitis

$595

$127

Earache

$400

$110

Sore throat

$525

$94

Sinus infection

$617

$112

Strep throat

$531

$111

Urgent care:

minor lacerations, fractures, bumps, sprains, sore throats,

ear infections, and other "just don’t feel good" conditions.Emergency room: potentially life threatening conditions like stroke or chest pain.

1. Source

: https://www.regence.com/emergency-room-vs.-urgent-care

2. Source:

https://www.debt.org/medical/emergency-room-urgent-care-costs/ (updated June 6, 2017)Slide7

Review your benefits

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Billing errors can cost you money, regardless of who made the mistake.

Tips:Compare provider statements to your explanation of benefits (EOB) from your health plan.Immediately contact your health plan to address any discrepancies.Slide8

Put money into your HSA

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Maximize your HSA contributions in 2019:

Single-coverage: $3,500 (2018: $3,450) save up to $700 in taxes!1Family-coverage: $7,000 (2018: $6,900) save up to $1,400 in taxes!1Catch-up contribution,

age 55+: $1,000

1. Estimated savings are based on an assumed combined federal and state income tax bracket of 20%. Actual saving will depend on your taxable income and tax status.

HealthEquity

does not provide tax advice.Slide9

Healthcare costs in retirement

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*The

average American couple will need $265,000 to have a 90 percent chance of having enough money to cover out-of-pocket healthcare costs in retirement. Based on median prescription drug expenses. Source: Employee Benefit Research Institute (https://www.ebri.org/pdf/notespdf/EBRI_Notes_Hlth-Svgs.v38no1_31Jan17.pdf) **The example scenario above provides estimated assuming a 20% combined federal and state tax rate. Slide10

HSAs vs. IRA or 401(k)

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IRA/401k savings (Roth or traditional) are taxed

at some point.HSAs are not taxed if they are used for qualified medical expenses.1After 65 no penalty for non medical (Subject to tax if non-qualified medical expense)1. 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.Slide11

Cover the Medicare gap

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Qualified medical expenses not covered by Medicare can always be paid from your HSA tax-free.

1PrescriptionsMedicalDentalVisionHearing expensesCopaysPremiums

1. 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.Slide12

Extra fuel for your retirement

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Maximize

your tax-free earning potential through investingTake the guesswork out of investing with Advisor™HealthEquity.com/Advisor(Powered by HealthEquity Advisors, LLC)Investments available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC insured or guaranteed by HealthEquity, Inc.. HealthEquity, Inc. does not provide financial advice. HealthEquity Advisors, LLC™, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, does provide web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). HealthEquity Advisors, LLC also selects the mutual funds offered to HSA holders through the HealthEquity, Inc. platform. Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. HSA holders making investments should review the applicable fund’s prospectus. Investment options and thresholds may vary and are subject to change. Consult your advisor or the IRS with any questions regarding investments or on filing your tax return.Slide13

Powerful resources

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HSA balances can grow

with tax-free earnings from a choice of:No-risk FDIC-insuredcash accountLow-risk Yield PlusVarying risk mutual funds Investments available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC insured or guaranteed by HealthEquity, Inc.. HealthEquity, Inc. does not provide financial advice. Slide14

Investment advisory services

HealthEquity

, Inc. does not provide financial advice.

HealthEquity Advisors, LLC™, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, does provide web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). HealthEquity Advisors, LLC also selects the mutual funds offered to HSA holders through the HealthEquity, Inc. platform. Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. HSA holders making investments should review the applicable fund’s prospectus. Investment options and thresholds may vary and are subject to change. Consult your advisor or the IRS with any questions regarding investments or on filing your tax return.Slide15

Save now, cash in later

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Watch your HSA balance grow

Pay out of pocket for qualified expenses

Delay your reimbursement and save toward

a future financial goal or a dream _________.

There is no time limit with an HSA to reimburse yourself for qualified medical expenses that you pay out-of-pocket

You can accumulate the reimbursable

amount until you reach a determined goal while building tax-free earnings.

(fill in the blank)

HealthEquity

does not provide legal, tax, financial or medical advice. Slide16

Mobile app

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On-the-go

access for all account typesTake a photo of documentation with phone and link to claims and paymentsManage debit card transactionsView claims status Manage claimsAvailable for iOS and Android

Convenient, powerful tools:

Accounts must be activated via the

HealthEquity

website in order to use the mobile app.Slide17

Available around-the-clock,

every day

Helpful support for members

Based in Salt Lake CityMelissaHealthEquity team member866.346.5800Slide18