See Important Information about Health Care Flexible Spending Accounts and Health Savings Accounts

University of Cincinnati employees making use of the

Flexible Spending Account

(FSA) option to set aside money from their pay on a pre-tax basis in order to cover later out-of-pocket medical expenses need to be aware of Internal Revenue Service regulations IF they are considering enrolling in the

High Deductible Health Plan

with its

Health Savings Account

(HDHP/HSA).

IRS regulations state that if you enroll in the HDHP/HSA Plan for 2015 and have a balance in a 2014 Flexible Spending Account (FSA) as of Dec. 31, 2014, you are not eligible to contribute funds to an HSA (the Health Savings Account associated with the High Deductible Health Plan) or receive any funds in your HSA until

April 1, 2015

.  This includes UC’s contributions to the HSA that are part of the High Deductible Health Plan.  The April 1, 2015, date applies even if your Health Care Flexible Spending Account (FSA) account balance reaches $0 at an earlier point in 2015.

Additionally, if you have a balance in your FSA as of Dec. 31, 2014, any medical expenses incurred prior to April 1, 2015, are not eligible for reimbursement with HSA funds.  Expenses must be incurred after April 1, 2014, in order to use the funds in your HDHP Health Savings Account.

So, when making your decision about enrolling in the High Deductible Health Plan with its Health Savings Account, you should consider depleting your FSA balance by Dec 31, 2014.  For current employees who are enrolled in the High Deductible Health Plan with its Health Savings Account, you will also need to consider whether you want to make contributions to the HSA through payroll deduction. You must make a new election each calendar year.

If you have a $0 balance in your 2014 Health Care Flexible Spending Account (FSA) as of Dec. 31, 2014, you are then eligible as of Jan. 1, 2015, to make use of your own as well as UC’s contributions to the Health Savings Account funds that are tied to the High Deductible Health Plan to pay for eligible medical expenses. UC’s contributions will be made in early January for AAUP members and during the first week of February for other employees.

For information on your Flexible Spending Account balance, contact Chard Snyder at 1-800-982-7715.

Important Information about Eligibility for the High Deductible Health Plan’s Health Savings Account

The HSA lets you control how you save, invest, and use your healthcare dollars. You can use HSA funds for IRS-approved items. Examples include

• Doctor's office visits
• Dental services
• Eye exams, eyeglasses, contact lenses and solution, and laser surgery
• Hearing aids
• Orthodontia, dental cleanings, and fillings
• Prescription drugs and some over-the-counter (OTC) medications
• Physical therapy, speech therapy, and chiropractic expenses
  

Qualifying for a Health Savings Account

In order to qualify for HSA participation:

• You must be enrolled in the HDHP Plan.
• You cannot be claimed as a dependent on someone else’s tax return.
• You cannot be covered by a spouse’s Flexible Spending Account (FSA).
• You cannot be covered by any other medical plan (unless it is an HSA-qualified plan).
• You cannot be entitled to or enrolled in Medicare Part A and/or B
  

You can use the funds in your HSA to pay for the medical expenses of dependents covered by another health plan, even if it is not an HSA-qualified plan,

as long as they are eligible dependents as defined by the IRS.

HealthEquity will be the university’s Health Savings Account vendor for 2015. You can learn more about Health Equity at

http://healthequity.com/ed/hsalearn

.

See Recent News on 2015 Health Benefits

• Annual Benefits Enrollment Is Now Open
  
• Voluntary Options Available During Annual Benefits Enrollment
  
• Information Sessions Are Scheduled
• Get Ready for 2015 Annual Benefits Enrollment
• See Online Information about Transition to Anthem and 2015 Medical Plans
• UC Plans to Contract with New Vendor, Anthem, for Administration of Medical Benefits