11a – Session 1: HSA option and FSA options (state/higher ed only) options employee webinar

Okay we’ll go ahead and get started hello everyone I’m Joan Williams with Benefits Administration welcome to our Annual Enrollment employee webinar series where our insurance carriers also known as vendors will present information on their products today’s session will be about the hsa option which is available for employees enrolled in a CDHP plan and the FSA options which are for state and higher education education employees only this session is being recorded so others can view it later you can find a copy of today’s presentation on the partners for health website by going to annual enrollment in the top navigation and then the enrollment materials page and then go down to the towards the bottom of the page and clicking on the Optum Bank powerpoint before I introduce today’s speaker we want to take care of a few housekeeping items all attendees today have been muted if you have a question you will need to type it into the chat box you can find the chat box by clicking the bubble found at the bottom of your screen this will be the third bubble in from the right you’ll see the blue arrow there at the bottom of the screen when you send a chat please make sure to send your question to all panelists so all panelists will see it and we won’t miss it we will try to get to all questions at the end of today’s vendor’s presentation for questions this is your chance to ask our insurance carrier about the products they offer in the chat box please do not include any personal or private health related information but keep your questions general in nature if you have very specific questions that are related to your individual benefits or how benefits are being processed we recommend that you send those questions to benefits.info at tn.gov these questions go into our help desk ticketing system and we will be sure to have these answered for you we do have quite a number of attendees that have joined today so if we aren’t able to get to your question you can also send us an email at that benefits.info at tn.gov address our presenter today is Linnie Stelk with us today from Optum Bank the vendor that will will replace PayFlex on January 1st Linnie will go over the HSA for all plan members who enroll in a CDHP or Local CDHP and the Local CDHP is for local ed and local government employees and then we’ll take some questions about the HSA then Linnie will talk about the FSA options for state and higher education employees and then we’ll be followed by questions about the FSA we also have our benefits administration staff on the call with us today to help with any additional questions you may have about the benefit discussed and enrolling today we have Keith Athow our director of HSAs and FSA’s and Heather Pease is our assistant director and now i’m going to turn it over to Linnie for our presentation Hi, good morning Joan thank you and thank you everyone there are quite a few participants I want to personally thank you for taking time out of your day to learn more about your valuable medical savings and spending accounts also dependent care account benefits so yes my name is Linnie Stelk and also on the line from often bankers Nicole Jardine we represent Optum Bank which is your provider for these services starting January 1st 2021 and as Joan mentioned that’ll be replacing your current pay flex benefits so often we’re a financial services company but we’re dedicated exclusively to health care we are part of Optum which is one of the nation’s largest health and wellness companies and we serve about 60 million households so let me give you just a quick overview of Optum Bank so obviously as a bank we’re a member of FDIC which is the federal deposits insurance corporation we’re also subsidiary of optum and optum offers a wide variety of products and services and the parent company is united health group your deposits with FDIC are insured up to 250 and additionally Optum Bank protects your account with multiple layers of cyber fraud protection that’s going to help give you some peace of mind often bank differs from other banks in that we’re focused exclusively on healthcare banking we don’t have checking accounts we don’t have mortgages it’s strictly healthcare banking and you’re in good company as often bank is the largest provider of HSAs in the united states and we’ve got about 145 000 people employees working at Optum and we’re here all about making the health care system work better for everyone so let’s get started with HSAs on the next slide I want to review for everybody on the line who are eligible to participate in the HSA go through a review what exactly is it

we know that in HSA it’s really a special type of bank account and it’s designed to help you save and pay for qualified medical expenses but in simple terms it’s like an IRA for your health but with an HSA you don’t have to wait for retirement to spend the money you can use it this year next year or even years from now and into retirement and HSA works like this first you enroll in your plan benefits and if you select the CDHP medical plan or local CDHP plan if you’re a local education or local government employee Optum Bank is going to establish an HSA in your name and send you a welcome letter state employees will elect your payroll contributions during annual enrollment in Edison while higher education local education local government employees you’ll work with your agency benefit coordinators or HR department to choose your payroll deduction if that option is offered to you all deposits made to your HSA are income tax-free the funds in the HSA belong to you it’s your bank account and your in your name not sure whether you’ve contributed money or your employer put the money in you own the account from the day you open it there isn’t a use it or lose it rule like there is with a flexible spending account or FSA the account is with you as long as you want it to be even if you change jobs you lose your job or you choose a different health plan in a in another year this is your account that you get to spend and save for health care expenses for the rest of your life you save on taxes with an HSA the money you put in an HSA is tax deductible you don’t pay federal income tax on an HSA or state taxes in most states like Tennessee and any money you take out to pay for qualified medical expenses is income tax-free so you can use your HSA to pay for qualified health care expenses for you your family today tomorrow and into the future now additionally your account can grow with tax-free interest earnings when your account balance reaches a thousand dollars you can also choose to invest a portion of your money in mutual funds but be aware though while deposits are insured by fdic up to 250 000 that’s the cash part investment those are not FDIC insured they’re not guaranteed by Optum Bank and they can lose value as the market as the market moves so what else do you want to know about an HSA on the next slide there we go you want to know you’re always in control of managing that HSA it’s all yours just like any other bank account you have this one’s all yours you determine how and when to use your HSA dollars you can use it for current qualified expenses or you can save it for future expenses at my house we have an over under roll if the cost of the eligible expense is below 500 we pay with our day-to-day spending credit card and we include it with our payoff at the end of the month on that credit card but if it’s over 500 we’re having a further discussion we may use the HSA so why is this you know because i don’t want to be I want to be able to use my HSA later on i want to save as much as I can in there I’ll have in the future expenses I’ll have that HSA to spend tax free today tomorrow and into retirement so for us it makes sense to grow that balance to as high as we can and pay for expenses we can in our disposable income if we can with HSAs you also don’t have to submit any claim forms when you use your hsa money you are going to want to hold on to the receipts though so unlike an FSA it requires you to substantiate by sending a copy of your receipt or your explanation of benefits from your insurance company the HSA doesn’t have this requirement this is your money to use opt-in bank is never going to ask you for a receipt of a claim for the money that you use in your account however again the irs the irs might one day if you’re audited but when it comes to Optum Bank we report every year total dollars you put in and total dollars you took out there is no detail of each transaction it’s not matchy-matchy like an FSA account one receipt for one transaction so hang on to all of your receipts in case you need to prove to the irs what uh you’re spending that it was qualified

now the maximum annual contribution limit those are set every year by they are by the IRS and they do tend to tick up a little bit each year and we’ll see that in just a minute when we compare 2020 to 2021. the deposits they can be made at any time and they’re available immediately now unlike an FSA this account is not front loaded this is a traditional bank account so if you don’t have money in you can’t take money out knowing that you may have expenses before you have a lot of money in your account the state and higher ed generously deposits money to your account in an employer’s seed it’s tied to your insurance level if you are covered as on a single plan it’s 250 dollars if you’re on some other plan it’s 500 and this is deposited in early January excuse me so additionally sorry um the HSAdollars you can also use this for any qualified tax dependent even if they’re not covered on your medical plan so that’s a great benefit as well you can use this for your spouse and any tax dependents even if you don’t cover them on your health plan again that money rolls over year to year so you don’t have to worry about a use it or lose it role um on the HSA it’s yours to spend this year next year and even into retirement now once you are enrolled in Medicare you do need to stop contributing to your HSA um the Medicare plans that uh that we all get to participate in later on are not considered CDHP plans by the IRS so they’re not eligible for you to continue to make HSA accounts so bear that in mind as you start to move forward now because the HSAs you know some pretty generous tax benefits there are some eligibility rules we’ll take a look at those on the next slide not everyone is eligible to participate in an hsa but most folks are the first thing is on the next slide you do need to be participating in that cdhp plan that’s a consumer-driven health plan and your state health plan is eligible as an hsa account so there’s some strict guidelines from the irs around what the deductibles need to be and what is or isn’t paid for before you meet a deductible and that’s how it’s determined that it is an HSA qualified plan there are some other eligibility rules though you can’t be covered by any other health coverage that’s not considered a CDHP health plan now this doesn’t include dental or vision or disability types of insurance but if your spouse is covered by some sort of health plan that allows them to pay for your expenses before meeting a certain deductible in other words it’s not a CDHP health plan that that makes you ineligible to participate in the HSA you also can’t be enrolled in Medicare Tricare or Tricare for life again these are considered by the IRS to not be CDHP plans so it will impact your eligibility for the HSA when it comes to VA benefits now if you have received any VA benefits within the past three months that wasn’t preventative care and you are also a veteran that doesn’t have an exclusion from a disability rating that impacts your eligibility to contribute for three months since your last plan or since your last coverage from the VA now you also can’t be claimed as a dependent on somebody else’s tax returns so you know with the ability to be on your parents plan up to 26 that could impact some folks you want to bear that in mind you also can’t have a health care flexible spending account or have a spouse that you have a joint tax return that has a health care flexible spending account irs looks at that as double dipping so those are some things that will roll the eligibility out and those eligibility requirements requirements will be covered as you’re going through your elections so take a look at those and make sure that you’re eligible if you have other um types of questions around your

eligibility or restrictions a lot of times you know a tax or legal financial advisor might be your best bet if you have unique circumstances and situations now just like eligibility requirements because we can’t all be eligible for an HSA for these generous benefits there’s also some limitations on the amounts that we can contribute each year and like we said earlier these are typically tweaked a little bit each year in 2021 you’ll be able to contribute up to 3 600 if you have individual health plan coverage and 7 200 if you’re in a family coverage type obviously the reasons for these are because there’s more people to cover and the deductibles are typically higher and the IRS takes that into the account now the irs also allows people that are nearing retirement age to make additional catch-up contributions this helps us build balances to be used to pay for those health care costs during retirement now all of these contribution limitations include the amount that you might receive from your employer so bear that in mind as you are selecting your contributions each year for that catch-up contribution you can put an additional thousand dollars if you’re 55 years or older into the account so as you can see the amount gets more and more generous that you can put into that hsa and avoid paying taxes on now if both you and your spouse are 55 or older you can both contribute an additional thousand but your spouse is going to need to open his or her own HSA and a provider of their choosing so that they can make their own HSA catch-up contribution now also if you are on Medicare part A part B you cannot make a catch-up contribution just like you can’t make other contributions that includes the catch-up contribution now for state and higher education employees you’re going to receive an employer contribution based on your medical insurance coverage type we talked about that a moment ago for individual coverage it’s 250 for other types of coverage family coverage you’ll receive 500 in early january again the local ed and local government employees check with your ABC or your HR department to see what if any HSA contributions they make on your behalf you make on your behalf and how you can set up a payroll contribution so now for state employees um you may also elect to have some or all of your wellness of incentives be directed to your HSA as well this is a great way to maximize your tax savings but be sure to account for this to stay within those IRS max contribution limits if you need to want to drill down on this a little more on the contribution limits you can there is a handy contribution calculator on the Optum Bank site we’ll look at these different resources that you have available to you on another slide and you’ll see those but IRS.gov is another great way to take a peek at what those limitations are so let’s take a quick look if we if we know these contribution limits on the next slide let’s take a look at sort of an example of what this means in dollars and cents for us with this tax savings um this one that we’re going to look at is let’s say we’ve got three thousand dollars we’re going to put in our hsa in 2021 so it may be surprising when we look at this to learn you can actually save over 1200 in taxes and that is a nice chunk of change so how does this work so first the money you put into your HSA that’s that’s income tax deductible right there you put three thousand dollars through payroll deduction into your Optum Bank HSA and you save another 750 in federal income taxes and then you also save 255 in state income taxes now these are general tax rates it’s 25 for federal and 5 for states everybody’s got their own tax situations but that’s about an average in the area now because your employer offers if your employer offers payroll deductions and it’s done through payroll there’s some additional taxes you save and that’s the FICA taxes so that could add up to another 230 dollars for income taxes obviously you continue to save when you withdraw

funds from your HSA to pay for qualified expenses so for example you take out two thousand dollars to pay for health care expenses for yourself for your spouse or tax dependent you don’t have to pay income taxes on that money so long as the funds are used to pay for qualified medical expenses and you were an interest on your account and that’s not taxable in tennessee if you had investments any capital gains are also not taxed as earnings so finally any amount that you don’t spend during the year is going to carry over for you to use in the future so in this hypothetical example you could carry over approximately a thousand dollars of your HSA money into the next tax year that you didn’t spend so it’s like the triple type trifecta of tax savings when we look at how an HSA works now on the next page let’s take a look at another quick example because three thousand dollars that’s a pretty generous payroll deduction not all of us have the disposable income to make that kind of commitment to our HSA so but your your health savings account you know it’s here to help you pay for qualified medical expenses whether they’re big or small so this includes anything from say prescription to contact lenses so even small contributions to your HSA could lead to something savings on your taxes if you can contribute just fifty dollars per paycheck to your HSA you could save over four hundred dollars a year in taxes so even if you contribute say a hundred dollars a month if that was a twice a month pay your tax savings could be up to 30 a month that’s like a 30 discount off your qualified medical expenses so it’s like buying medical services and products you’re gonna have anyway buying them on sale you know every little bit help you can save and grow these savings you can use them for for the here and now for your spending or for later so how do you use your HSA so once you are in an hsa and it’s time to utilize it on the next slide let’s take a look at how you pay how you use the Optum Bank account to pay for the eligible expenses that you have and there’s several ways first you can use your Optum Bank debit Mastercard this is by far the most popular way we see folks do spending it’s the easiest way to access the funds that can be used at point of sale anywhere that accepts Mastercard um and this includes qualified medical expenses at the dentist the chiropractor the orthodontist your pharmacy you’ll get two cards when you enroll those will arrive in mid-december uh if you need more cards you can definitely get them you just request them by logging on to your account or calling often bank there’ll be a phone number on the back of your card you can use that to contact us and also there’ll be a URL on the back of your account optumbank.com backslash Tennessee where you can go to to log into your account now online bill pay that’s another popular option for paying with an HSA after you log into your account or through the mobile app my personal favorite for accessing my HSA you can send payments directly to your health care provider your pharmacy and other payees it works like bill pay you use for any other bank account you can also even set up recurring payments in the bill pay say for orthodontics you know you’ve got to be paying a monthly bill you can set up a recurring payment so that you don’t have to remember to go in and do that every month now another option is to pay for those qualified medical expenses out of your pocket and then reimburse yourself at a later date you might feel like I can Ican handle this expense in the budget or maybe I forgot my card and I plan to use my HSA reimbursements can be done by accessing your account online and then request either direct deposit or a check disbursement to you I love direct deposit feature it’s quick it’s safe when you first set up your account you will want to also set up the bank account information that you want to use for reimbursements there’s instructions for doing this it’s available on optumbank.com backslash Tennessee that’ll save you a lot of time the first time you want to do a direct deposit all be set up and ready to go you can use your debit Mastercard also at an ATM that accepts Mastercard you can get cash or reimburse yourself now keep in mind there’s ATM fees that can apply to these types of

services you’ll also need to you’ll need to know what your pin is for your card you set that when you get your card there is a 300 dollar per 24 hour period limit on ATM withdrawals and the owner of the ATM may assess the fee as well often bank assesses 250 and if there is a fee by the owner of the ATM that will be disclosed on the screen at the time that you’re doing the transaction now instead of using an ATM and paying fees there is another way to access cash from your HSA for reimbursement or to pay a provider and that’s to use your HSA card at point of sale as a debit card transaction you use your pen and request cash back but remember you are responsible for keeping all receipts and substantiating your HSA was used for eligible expenses to the IRS if you are audited so bear their that in mind so let’s sort of sum this up shall we um what’s the best way to make the best use of your HSA on the next slide so with the CDHP it’s really important to save money in an HSA so you’ll have money when you need it to pay for those qualified medical expenses that include the deductible that you’ll need to pay so here’s how you make the most out of that hsn easiest way to fund it is by having an amount deducted regularly from your paycheck if you can if your employer allows for it now keep in mind all contributions even those from your employer count toward that IRS max when you’re figuring out your contribution that you’re going to make when it comes to using your HSA you also want to be sure you understand the list of qualified medical expenses you might be surprised at what you can use an hsa to pay tax-free for now you can find this list at optumbank.com backslash tennessee it’s also on the Optum Bank mobile app and you can also see it at IRS.gov you can use your HSA for a wide variety expenses so remember that health plan deductible prescriptions now over-the-counter medications doctor office visits dental vision care the list really adds up you can also use that HSA to pay those same expenses for your spouse and your tax dependents so bear that in mind as you’re trying to figure out what you’re going to contribute to your account each year the next thing you’ll want to do is maximize the tax savings that comes with the HSA know what the contribution limits are and contributes to a max amount that your budget allows and that you know you’re going to spend on expenses anyway and then if you can factor in some savings for future years the first goal was really save enough that you know you’re going to spend on medical expenses anyway buy those medical services and products on sale your savings grow income tax-free the money you put in grows in or goes in income tax-free and what you spend is not a taxable event so take advantage of all those situations and then of course lastly grow that balance in the account if you can it’s important to start early make regular deposits set a goal every year so not only are your deposits going to grow but so are your tax savings um choosing to invest a portion of your HSA and a mutual fund could even help you grow your nest egg even more to pay for deductibles and out-of-pocket expenses not just this year but in future years lastly let’s look at how to get started obviously you’re going to choose your health plan during open enrollment you pick the CDHP plan for a higher ed and local or i’m sorry for local ed and local government the local CDHP plan if you choose that plan and you currently have an HSA with pay flex the balance in that pay flex account will transfer to your Optum HSA in the first week in march you will receive an HSA welcome kit from Optum Bank it’ll come mid-December in a separate mailing will be your two Optum Bank debit Mastercards when you get that card be sure and activate it as well as log in and activate your account set it up a username and password and download the Optum Bank app to get to your HSA 24 7

um there are the partner for health website does have the Optumbank.com/ Tennessee resource on the next pages just a little screenshot of what that site looks like when you go there lots of resources available for you here there are some that are available now pre-login if you will pre having an account once you have an account you can log in and see some additional resources there’s some great calculators and tools here the qualified medical expense search tool some other things that will be available after you’ve logged into your account is a great tax center to help give you lots of information on your tax questions and a chat feature also with Optum another way to connect with Optum Bank is through the mobile app on the next screen is just a little screenshot that shows you what that looks like you can track your balances you can look at recent transactions and contribution limits you can capture and submit receipts here they will be happy to store those for you until you need them you can be tracking your progress all along on your contributions you can order debit cards you can review your account statement you can access lots of educational resources like videos and fliers now in addition Optum Bank also easily connects to your google home or your alexa enabled devices if you have these at home you just download the Optum Bank skill on your app and say hey google or I’m sorry hey alexa or ok google and you can ask generic questions about HSAs like what are the HSA contribution limits or are bandages a qualified medical expense so it’s really handy if you have these type of technological advances in your household um lastly I included a piece here you on the next slide where you can drop this information down it will also be available on it’s also available on the optumbank.com backslash Tennessee site also will be on the back of your debit card your 24 hour day seven day a week access through telephone or email services and the optumbank.com slash tennessee site for getting to your HSA and your HSA information or live help to help you so let’s pause here if we go to the uh we can leave it here or go to the next screen doesn’t matter we could leave it here so you guys can jot that information down if you’d like um but Joan I’ll okay back over thanks yes we have lots of questions and we’re going to get to as many HSA questions as we can in the next few minutes probably 10 minutes and then we’ll jump to FSAs so we have quite a few privately sent um since dependents on Tricare are not allowed to be covered by FSA/HSA accounts can we submit reimbursement claims for vision if they are listed under the policy keys can you help with that or Heather hey Joan thanks for that question um or do we need to have that go ahead um I’m sorry could you repeat the question for me sure sure since dependents on Tricare are not allowed to be covered by the FSA and HSA accounts can we submit reimbursement claims for vision if they are listed under the policy you cannot be enrolled in Tricare and also be enrolled in a CDHP so if the uh if the dependent were enrolled in Tricare which it sounds like uh that’s what they’re saying is they would not be able to own the CDHP and so therefore would not be able to have an HSA okay so they would not be able to send the claims in for vision under the policy and again if we’ve got some very specific questions so if you have these questions it might be better to send it to benefits.info at tn.gov the next question is are our out-of-pocket premium expenses able to be claimed against against HSA FSA accounts if so do we submit our pay stub as proof of payment and actually um your health claim your you cannot claim your health insurance premiums um against your HSA or FSA accounts and Keith or or pardon me Heather if you need to chime in on that

so I have several that are sent to me privately actually heather and I’m going through those first in order that if they’re if they’re about HSA and so um and Keith actually I see it here now so the question is are our out-of-pocket premium expenses able to be claimed against HSA FSA accounts is that that’s the question yeah if we submit our our pay stub as proof of payment so so we are you are not able to use your HSA or your FSA to pay premiums correct right um the next question and this also was sent to me and we’ve had a couple of that were related to this it’s people who have current opt-in bank accounts currently and they want to know if they have the opportunity opportunity to use that account or will they be given a new one um so I don’t know Linnie or if you can explain that we’ve had a couple of questions about that okay yeah and that helps and Nicole feel free to chime in as well um the the Optum Banks accounts are are we look at social security number as the identifier for that account so if an account already exists at the time we look to establish one that account would be used uh moving forward we wouldn’t open a new one okay great thank you we had another we had another question uh will Optum cover an iPhone app like PayFlex that allows upload of EOBs in support of documentation for consideration of payment along with easy view of available funds and pending transactions and Keith responded yes it is on the app store as Optum Bank and Linnie if you have anything to add let me know yeah there is Keith is absolutely correct it’s Optum Bank and there was a screenshot of it in the presentation if anyone wants to look at that and that mobile uh one forward that um app is huh well it’s just the front page my apologies so yes the um we do fully support the app and the functionality in the app is the same as if you went to the site on a PC or tablet great thank you and we do have a few FSA questions we’ll get to those later and they may be answered in Linnie’s presentation we’re going to get to the HSA options for all plan members first uh the next question and this we’ve had quite a few investment option questions so transferring all funds from current HSA bank to Optum how do you transfer the investments um to Optum so Keith or Heather could you answer that question for us yeah Ican take that question thanks Joan so the um your investment funds with pay flex those will be liquidated before they are transferred over to often and once once those funds reach out to bank which will be um by the first week of March you will be able to reinvest those funds which often things and they will have some investment options for you great so they will to confirm they’ll automatically be transferred and then that would include mutual funds we’ve had some clarification or people asking for clarification on that that’s correct then the member would not need to take any action um those funds would be automatically you know liquidated for them and transfers okay yeah heather can I pick you back on that answer sure okay so we see a lot of questions here in the chat box about the uh your existing balances that you may have in your health savings account with pay flex and we’ll transfer over to Optum and also questions about the investments um the way that we’re planning for this to work and what we’re working with both vendors on right now is what Heather said uh your Optum HSA if you enroll in the CDHP or the Local CDHP this fall you will get a new Optum HSA open for you and an Optum HSA debit card in December you’ll have that account that will start in January and it will have very little to no funds in it if you’re a state or higher education employee then 250 or 500 will go into that count in early January and then if you have payroll deductions through your employer some employers offer that some employers don’t if you off if they offer payroll deduction throughout January and February your payroll contributions will be going into that Optum HSA

we are working with both vendors right now to try to iron out all these details but the plan is that your PayFlex HSA balance will be including any investments you may have will be liquidated sometimes starting around February the 8th and for about three weeks in February so starting February 8th your debit card from pay flex would be deactivated you would not have access to those funds for three weeks until they can sell any mutual funds you may be invested in and then those funds can be liquidated and transferred in a bulk transfer over to Optum we are working on that now and we hope for that to happen the first week of March but the good news is that from January 1st up and through February 7th your PayFlex debit HSA debit card will still be active and you can still access your PayFlex HSA funds if you need to spend those funds if anything about this changes we will be sure to email all HSA participants we have everyone’s email addresses you should have received an email from Benefits Administration earlier this week but that’s really all that we can explain at this time okay great thank you thank you Keith thank you for that we’ve had a lot of questions about that um we also have a lot of questions about what is a qualified expense so Linnie could you tell us where will people where people could find that information sure sure um the easiest way first of all to find a qualified expense if it’s something that is used spent to diagnose or treat a medical condition it’s typically a qualified expense you can refer to the qualified medical expense link that is at optum optumbank.com backslash tennessee it’s also available once you download the mobile app there’s a qualified medical expense link and irs.gov is also another um great resource to use for those types of questions if you’re ever in doubt you can check with us great because we’ve had some specific questions about concierge medical care and other items um also we’ve had some questions about are all health plans including Open Access Plus open to the HSA and so to to clarify so the CDHP when you enroll in that plan then you can choose your network so you have a choice of three networks and the Open Access Plus network would be one of the networks that you could choose if you enroll in the CDHP HSA or the Local CDHP and Heather Keith if you have anything to add to that let me know you can chime in that’s correct I think that was good yeah go ahead I think it’s also helpful for everyone to to make sure that you understand the difference between a network and a health plan so Blue Cross Blue Shield of Tennessee and Cigna are our two carriers they offer all of the help plans that are offered to you all we have different PPOs whether it be a standard or partnership or Premier PPO local and local government employees also have a limited PPO separately you have the choice of a CDHP and local education local government employees have the local CDHP when you enroll in one of those plans you have to choose which vendor you want whether it’s Blue Cross Blue Shield or Cigna so that i just want to provide that distinction make sure everyone’s fully aware great thank you um next question can you enroll in the HSA if you do not have state benefits and you cannot heather and keith yes that’s that’s correct so you would need to be enrolled in the CDHP in order to have that HSA thank you and heather can you also explain so state employees can have the option of an HSA or an FSA for 2021 or can they have both can you explain how that works sure yeah so if you enroll in the CDHP with the HSA you can also enroll in the limited FSA but you are not allowed to enroll in both the CDHP HSA along with the medical FSA so you could only pair that with the the limited purpose which allows you to um you can the limited purpose you can send those funds on only deadline vision expenses great well we are going to we have quite a few more HSAquestions we’re going to try to get to those and the FSAs too but i want to make sure Linnie has time to present the FSA information so we will go ahead and present that and then we’ll continue to answer

all these questions that that we can so Linnie will go ahead and have you continue perfect thank you Joan so the FSA products that we’re going to review today these pertain to state and higher education employees only so if you’re with a local education or local government please you know just check with your agency benefit coordinator or your HR department on your FSA options because that’s not what I’m going to cover for you today so you are welcome to drop if you’d like for this section so here kind of shown here is a side by side comparison of each fsa account type we’ve talked a little bit about these but you may be eligible to participate in one or two of these options but not all three so you can see that these account types they work a little differently and your eligibility to participate in the medical FSA and the limited purpose FSA these are dependent on the type of health plan you choose and if you have an hsa so the medical FSA is when you’re enrolled not in the CDHP plan the and it’s for you to save and pay is the spending account by the way all of these are spending accounts the FSA the s and FSAstands for spending because these are use it or lose it type of accounts so for medical you can spend this money on any eligible expenses you can also use for your hsa pretty much you can pay for medical vision and dental expenses with these you can see the contribution limit is not quite as generous with them with an FSA as it is for an HSA and it doesn’t matter what if you’re enrolled in single or family it’s the same amount two thousand seven hundred and fifty dollars for 2021. your plan has a provision that allows you to carry over up to 500 to the next year and again you’re going to get two debit cards those will be sent mid-december if you roll in this it will come with a welcome letter in mid-December and an envelope with two debit cards in mid-December and you can always order more cards if you need them the limited purpose account is this is a tax advantage account just like the medical you can put the same amount into it but this is designed to sync with your hsa it’s so that employees that can save for just dental and vision expenses as heather was mentioning this is really designed for folks who either want to maximize the amount of money that they’re getting taken out of their payroll for uh tax-free spending on medical expenses are going to have dental and vision expenses and don’t want to use their hsa really to pay for those or the exact opposite somebody who has lots of expenses including dental envision and the amount they can put in their HSA isn’t quite enough and they want to put a little more tax-free dollars into a limited purpose at all times limited purpose is only available for spending on dental and vision not on medical expenses the qualified expense link is available also here this is the same link that’s available at optum.com and you can carry over up to 500 in this account as well the dependent care account and we’ll look at um we’ll break each one of these down uh independently to take a look at how they all work but the dependent care call is irrelevant of if you’re in a health plan or the type of health plan you’re in so that’s a little bit different beast and we’ll take a look at that as we look at the breakdowns of these but first let’s take a look at why do I want to do an fsa what’s in it for me for an FSA on the next slide we’ve included here also an example of the savings that you can realize by using an FSA now we already know the amount you can put in an FSA maybe not quite as generous as the HSA but if you’re not enrolling in the CDHP plan and still want to save some tax money this is a great way to do it if if you’re in one of the other plans now remember FSAs these are not a bank account these funds are not owned by you but any funds in excess and any funds in excess of 500 at the end of the year the end of the plan year that are left

unspent those will be forfeited so bear that in mind as you’re thinking about how much you want to contribute to these now in this example let’s say you just selected a hundred dollars per pay period to go towards an FSA you’re in a 25 federal tax bracket you’re in a five percent state tax bracket and it’s payroll deductions it’s always payroll deductions for an for an FSA so you’re saving that psychic tax as well so this right here shows you and illustrates that you could save almost a thousand dollars worth of taxes just by utilizing this type of account to pay for your medical services and products and buy them on sale the next slide we look at the limited purpose FSA this is just like I said it’s a way to extend that additional tax savings past the HSA that you’ve already chosen um with this here you can put in up to two thousand seven hundred and fifty dollars but this is a spending account so make sure before you set these funds aside that you will have expenses for vision and dental for you for your spouse and for your tax dependents but this is a great way let’s say you know that middle child is having orthodontia work and that’s not cheap you have a lot of money to spend on that so utilizing a limited purpose fsa is a great way to extend the dollars you have to spend if the hsa isn’t enough or you want to leave your HSA alone and just use this tax savings account for that type of spending now on the next slide the dependent care FSA this is this gives you the ability to contribute and spend with this account but it’s completely tied to the eligible expenses that you have for dependent children who are under 13 years old and depend on adults who can’t care for themselves so as you can see here there’s several types of dependent care expenses that qualify for this tax-free savings and spending so but a big difference with this account is you’ll make claims for reimbursement of care that already took place you’re not going to have a debit card for this account now you can make that reimbursement request via a direct deposit or a check either one that makes sense for you so how do you pay for things with a medical FSA a limited purpose FSA on the next slide again you’re going to it illustrates that debit card that you’re going to get in the bail about mid-December you’ll get two of them unless it’s a limited purpose and you already have an HSA account you’ll still only get two cards but both of those cards will work for your HSA or your limited purpose FSA if your expense is dental or vision it will tap your limited purpose account if your expense is medical it will tap your hsa account until or unless you spend all your limited purpose elections you will have online bill pay feature also inside the mobile app um great way to have 24-hour day seven day a week access to your account your account balance set up online bill pay you can also do a reimbursement request so just like with the HSA you will go in and set up your bank account information for reimbursement so that’s ready to go if and when you want to have the funds transfer from your balance to your bank account to reimburse you always always always with an FSA medical limited purpose dependent care account you will need to submit receipts and or explanation of benefits from your insurance company to justify the spending these accounts are quite different from hsas and that every transaction has to be substantiated which means you’re proving the person who this expense was sent for is an eligible you your spouse or your tax dependent the provider was an eligible provider you know it was uh you know physical therapy massage and not massaging that you went to to get your massage uh what the dollar amount was for and the date that the item was both provided the service was provided and the service was paid for to differentiate what plan year that is

coming out of so a little bit different with the FSA so again how do I get started with this account um on the next slide the state employees who choose the FSA option during open enrollment will select their payroll deduction amount in edison for higher education employees you will use the optumbank.com backslash Tennessee site and there is a higher education employees click here section at the very front and center on the front page that you click on and you’ll follow the instructions that are provided to enroll and choose your annual election amount again then you’re going to get that welcome kit and two often bank debit mastercards in the mail around mid-December if you need more you order them through Optum Bank the they do arrive in two separate mailings so when that card arrives please activate it the activation instructions will be provided on a sticker on the card so that it’s ready to go when you have your first spending again if you’re enrolled in an HSA and you elect the limited purpose FSA you’ll get two cards total and both those cards you’re going to access both of those accounts be sure to register your FSA account online and download that app make sure you’re got the easiest way to manage and the convenient access to that FSA now if you have 2020 funds in your medical or limited purpose FSA with PayFlex to carry over into 2021 the carryover amount per IRS guidelines is limited to 500 and those funds will move to from Payflex to Optum Bank early in July 2021 so if you have unspent funds in your 2020 FSA account particularly if you’ve already sent the funds and it’s a reimbursement situation you want to get those claims sent in so that you can get those accounts closed out for 2020 sooner rather than later okay hey let’s move yes hey Linnie sorry to interrupt I just looked at the different years but this is a different year so I just really want to point out to all of our state employees and higher education employees that are on the call and who have current uh flexible spending accounts so if you have a medical FSA this year or a limited purpose FSA this year in normal years yes you can carry over up to 500 into the following year and you typically have that the first week of the the next year since we are changing vendors uh from PayFlex to Optum uh we’re really encouraging everyone to try to do like we used to do years ago and spend down all of your funds to a zero balance if you possibly can so that you don’t have to wait on those funds because your PayFlex debit cards for flexible spending accounts this is not your health savings account but your flexible spending account debit card will be shut off on December 31st and you will no longer be able to spend those funds you’ll have to file any existing 2020 claims uh with PayFlex up through April 30th of next year and any balance that you have that’s 500 or less it’s it’s not going to be moved over to Optum until sometime in late June or early July because PayFlex has to wait until they have finished processing all of the 2020 claims at the end of April they’ll be working on that in May and in early June and then they’ll send a bulk file to Optum so we really don’t want people to have to wait on there up to 500 so really just want to try to stress to you if you don’t mind waiting on your money then that’s fine you don’t have to but I know I wouldn’t want to have to wait so any funds that I might have in my limited purpose or my medical flex account I want to try to get those spent by the end of the year all right thanks great point okay Linnie are you ready for questions yes ma’am okay I thought I said go ahead great we will go through as many questions as we can again for if we’ve got a lot of very specific questions especially about people that are have questions about enrolling in medicare or they have a spouse that’s eligible for medicare and i would suggest that you send those questions to benefits.info at tn.gov we did put that in the chat box also Linnie can you clarify for FSA expenditures or qualified expenses Crystal put that link in the chat box

about where they can go to find qualified expenses but could you also state where that is again for FSAs yes ma’am so optumbank.com backslash tennessee the home page has a resource that says qualified medical expense tool that you can click on and it’s an interactive tool that you can use to look at the qualified expenses irs.gov publication 969 is also and a publication 502 is another resource great um I’m going to start here from the bottom actually there’s quite a few FSA so um we say that FSAs will come out of each paycheck Heather and Keith can you confirm that for our FSA members our state and higher education Joan I’m sorry will you repeat the question yeah did you say that FSA will come out of each paycheck yes if you’re a state or a higher education employee then your payroll contributions from your flex accounts should come out of each paycheck I know that many state employees are paid 24 times a year but many others are paid 12 times a year it’s divided up amongst your paychecks and i believe that is the case with higher education as well okay also we have a question about will you suspend the count when receipts are not submitted that is correct the um the cards will be suspended for use there’ll be two to three notices depending on how you have your election set up that will go out reminding you for those but after 61 days the card will suspend so you you will want to pay attention to those and then give us a call if we can help you decide what you need to send in to substantiate the expense great thank you and we’re going to continue to answer a few more FSA questions we will also try to answer the HSA questions so they are on the webinar and recorded so if people want to come back and listen to those you can do so we will post this recording on our partners for health youtube page uh what happens if you spend more next question spend more in your FSA than you have contributed because you leave the state prior to the end of the year heather or keith could you take that keith could you take that one yes um this actually uh you’re not required to pay those funds back the FSA account if you say for example if you contribute 1200 or that’s your election and you only work for the first few months of the following year and you’ve only contributed five hundred dollars but you’ve spent all twelve hundred dollars then this is uh it’s really just a tax benefit for both your employer and for you and in those situations your employer cannot recoup those funds from you so you you come out ahead in that situation great thank you next question the dependent care slide mentioned babysitters can you elaborate is this does this have to be a babies that are employed by company or the babysitter has to be set up as a business lenny could you answer that one i can I can take that and Nicole feel free to chime in if there’s anything further the one of the biggest distinctions is that the babysitter needs to be taking care of children under 13 years of age so that both parents can work so is the babysitter you know maybe your mother-in-law that’s that is okay but um receipts will need to be submitted in order to substantiate that and i’ll just pick you back on that to make sure that others are aware that um because we’ve seen this over the past few years the dependent care uh account it’s to enable you and or your spouse to work or to attend school uh so that you can provide for care for a dependent whether it be a child or an adult a qualified adult you and your spouse i’m not saying this is a question but we’ve encountered this where people didn’t understand the benefit um you and your spouse can’t go out on a date night and you pay for a babysitter out of this account it’s really to enable you to work that’s why it’s tax advantaged great thank you thanks keith um we have some specific questions about investing if people have a balance but they won’t need it and they use it for savings can you clarify the amount for investing with an HSA

so currently with pay flex you have to have at least a minimum balance of 1 000 in your health savings account before you can start investing it will be the same with uh with with Optum the investments themselves will be different currently with PayFlex there’s a mix of mutual funds we’ll have a mix of mutual funds under Optum as well the state of Tennessee treasury department reviewed and approved the investments that are offered under the op under the PayFlex contract they are also doing that under the Optum contract with optum it’s going to be 12 different Vanguard funds it’s a mix of different funds it’s listed on the Optum site that you’ve seen here optumbank.com slash tennessee and then you can go into the HSA section and look at the list of investment options that will be available again that site it’s out there for you to look at but they are not really a vendor for us doing any kind of work with members or anything or doing any investments until 1121 great now it’s on the screen optumbank.com slash Tennessee we had a question about the FSA contribution amount so I’ve went to that slide so for 2021 for the medical it’s 2 750 for the limited purpose it’s two thousand seven hundred fifty dollars and for the dependent care it’s uh five thousand dollars per year or two thousand five hundred dollars per spouse if married filing jointly um next question if I have I have the FSA i’ve gotten married this year and have added a person to my insurance can I use my FSA for his medical expenses Heather or Keith uh yeah Joan it’s just heather I can take that one so um yes you can you can use your FSA for a spouse and that would be true even if the spouse were not also on the insurance plan you could still use your FSA to cover this without success great next question um a person has contributed a thousand dollars to the FSA for the year when do they see that amount in the FSA is the full amount put there at the beginning of the year is it solely taken from each payroll uh Heather could you clarify that yeah I can take that one too Joan so your um as in years past your entire contribution will be available to you up front at the beginning of the year and you will slowly uh that will slowly be taken out of your paycheck over the course of the year but the entire amount will be available to you at the beginning of the year great thank you that happens on the medical FSA and the limited purpose Fsa where your entire election is available for you at the beginning of the year on the dependent care account you only have you can only spend the funds as they are added to your account out of each paycheck so you don’t have your entire election available at the beginning of the year nor do you have your entire uh election available in your hsa at the beginning of the year it’s just as it’s added we have a question thank you thank you Keith we have a question about when or where do you enter the amounts we want held from our payroll um and Keith and Heather that would depend on if your state higher education local legend local education and local government correct yes that’s correct so um if you’re a state employee um you’re going to enter those amounts in edison for higher education that you’re going to enter those amounts through the awesome portal and then for local education local government it depends on how you do your enrollment so you’d want to consult your agency advantage coordinator great um next question this is a question we have a lot of specific questions about um are you required to send in receipts for every expenditure on the FSA or do you need to provide this only for if requested Linnie or Keith or Heather could you Linnie could you take that I I’d be happy to take that Joan so great question I would be prepared to submit a receipt on each and every expense um most folks who find that they manage their fsa most successfully and get reimbursed quickly or have the claims paid quickly is those that do submit a receipt for each and every expense but do be looking for those requests to come and submit the receipts timely so you don’t have to go through a suspension of your debit card it is an irs requirement that all transactions be substantiated we try to avoid it when we can but

it’s it will be frequent hey linda can i pick you back on that as well of course um so we try to make this as easy as possible on plan members we provide a list of all the planned co-payments for medical uh pharmacy vision and dental expenses to Optum and they code their systems so that if you’re standing at a pharmacy and you swipe your card to pay a thirty dollar co-payment their systems can immediately recognize if you’re standing at a pharmacy counter and if you have a thirty dollar copayment on one of our medical plans typically you won’t have to submit receipts for pharmacy expenses or pharmacy co-pays if it’s a if it’s a flat dollar copay you’re typically not going to have to submit anything but as lenny suggested it’s always a good idea to keep all of your explanation of benefits from your insurance or any receipts that you get that uh have all of the codes on it in case you were asked for that because if you don’t have that and pay uh Optum requests it and you never provide it they will suspend your account and you won’t be able to utilize your debit card going forward you would have to file uh claims on the website or through mail or fax another thing i want to be sure to caution folks on that we’ve seen a lot of issues with over the past few years that folks struggle with is sometimes if you’re at a dentist’s office they want you to pay uh like a pending amount and um we suggest that that’s not a good idea to do that try not to use your your hs or your i’m sorry your limited purpose FSA debit card or your HSA debit card to pay dental expenses until it’s run through insurance please let it run through insurance and then get an EOB from your insurance to show exactly the amount you owe and then let your dentist provide you a bill for that amount and then you can pay it using your account because they will not be able to accept uh often that is they will not be able to accept a statement from your dentist’s office it says pending insurance you know 150 dollars that’s that’s not an IRS approved substantiation document thanks great thank you we’ve had a lot of questions about EOBs and receipts as they relate to prescriptions and other receipts s I think that I think that clarifies a lot of that information next question will my FSA medical cover spouse’s expense expenses if she is on a separate insurance account heather keys can you take that or lenny yes it will okay thank you sorry it will continue the FSA for a spouse and tax dependent provided you have funds available just to clarify next question total FSA funds for each year are totally available beginning January 1st 2021 but the HSA funds are used as funds are so the first part yes that’s correct they’re available beginning January 1st 2021 after you make your election but the HSA funds are used funds are Keith do you want to or heather do you want to clarify how that works yeah sure yeah that’s that is true your HSA funds are available as you um something like it works like a bank account so they’re available as they are deposited so if you um are a state and higher education employee you will get your um your speed fund at the beginning of the year either 250 or 500 um and then for local education or local government employees you would want to check with your agency benefits coordinators to see if you get those these funds those will be available at the beginning of the year but otherwise they’re available as you contribute them great thank you and we will stay on and answer these questions for as long as we can we will also post a recording of this session on our partners for health youtube page you can find that by going to the videos link at the partners home page and we’ll post this session next week so next question the medical FSA account is pre-tax as well correct Heather could you clarify um yes that that is that is true um this one I think just needs some uh clear for clarification or correct correction can I move medical FSA funds carried over from the prior year into a limited purpose FSA to avoid losing the funds if I sign up for the f for the HSA hey Joan this is Heather I could take that one so no you would not be able to transfer FSA a regular account or a limited account you would not be able to transfer them to an HSA

great thank you um the next question are hearing aids considered medical or can they be part of a limited purpose account Linnie or Heather um yeah Joan I can I can take that one um hearing aids are not considered dental or vision but they are considered medical so that means a medical fsa could be used to pay for that but a limited purpose FSA could not great thank you um next question what is the difference between it an FSA and an HSA Linnie could you explain that for us sure yes I’d be happy to so hsa or health savings account is a bank account owned by the account owner to be used when or if they choose to spend the funds on qualified medical dental or vision expenses an fsa account is a flexible spending account so that means the use it or lose it rule comes into play where they need to spend all of the funds to keep from forfeiting any of it there is a carryover provision that allows up to 500 of the amount deducted from payroll to go towards the next plan year but it’s more limited in scope there are the ex pretty much the exact same expenses are used for either type of plan the health savings account just allows someone a little more control over having funds roll over into future years and the contribution limits are a little bit higher and with an HSA for state and higher ed there is an employer contribution piece that can go into the HSA and not in the FSA I think that’s a pretty good synopsis um Keith would you add anything to that oh that sounds good to me good summary okay great thank you both um the next question was sent to me can you explain the disabled dependent care expenses for HSA accounts Linnie could you take that one could you repeat the question please sure can you explain the disabled dependent care expenses for HSA accounts the same I think we need dependent care fair expenses for HSA accounts so um I can take that question two different ways and I guess for a clarification standpoint are they asking if disabled care expenses can be paid for from an HSA rather than a dependent care FSA i’m not sure so i’m thinking it might be and I do hear a lot that pertains to this question and I’m going to make an assumption here that maybe they’re asking is if I have a disabled dependent am I still relegated to the spouse or tax dependent requirement to use my HSA to pay for their expenses because they’re disabled I do hear that question a lot so if that’s where the question was headed I would say that that is a situation you’d want to take to a tax on legal advisor the way the IRS code is written is it’s for spouse and tax dependent only okay thank you and again if you have a very specific question to your situation it’s regarding medicare or disabled care benefits you can send that to benefits.info at tn.gov and we can help answer that question for you next question when is it advised to create an account with optin bank mobile lenny what would you say my recommendation would be as soon as you get your welcome letter it will have your account information that you need to download the app and log in and create your username and password um also if you go to optumbank.com back slash Tennessee you can log in that way and register as well great thank you okay go ahead no you could you could go either way but downloading that mobile device allows you 24 7 access via your mobile device which is probably how we’re all accessing our other bank

accounts anyway great thank you the next question is why are we changing HSA banks and the state of Tennessee goes through a procurement process and Optum Bank is the uh was the winning vendor in the procurement process or keith or heather do you have anything you’d like to add i’ll just state that most state contracts run either three or five years and here in benefits administration our contracts have to go up for free procurement or for bid every five years all of the various contracts that we manage here in Benefits Administration uh crossover each other so they’re not all on the same five year cycle it just so happens that the pay flex contract ran from 20 i think it was 2016 to the end of 2020 we’re required by state law to put that out for um forbid and we did so late last year early this year there were a number of bidders and optum was selected as the best evaluated proposer through a combination of both cost and technical proposals great thank you keith another question kind of pertains to that regarding CVS and other drug stores and are they informed about the upcoming changes in vendor uh no they don’t really need to be I mean this is a benefit that most all employers across the country offer to their uh eligible employees so no they’re not notified if you get a debit card for your HSA or for your flexible spending account you’ll just simply start using that those stores are indifferent as to what type of account it is they are notified when we change medical vendors so they’re aware of that but this is a different type of animal great thank you the next question is regarding mutual funds and investments they’re currently with pay flex and regarding if the value of those shares that they change at the end of the year um do they have an option to hold on to those shares or sell them regarding the prior to the transfer or transfer out of PayFlex or do they need to change their pay their investments now in order to prevent any such change in the value of the investments or Keith can you explain how that works yeah um we really can’t provide investment advice we’re not allowed to do that what i can tell you is the plan right now is that your PayFlex accounts will remain in place for HSA through February 7th you’ll continue to be able to use your debit card at that point on February 8 2021 your your card will be shut off and you will no longer be able to use your account you can go on online and look at your balances but you will not be able to use your debit card for HSA nor will you be able to go online to pay a provider any funds out of your HSA any investments that you have will be liquidated at some point during that next three weeks we can’t tell you the exact date when that would be so it’s up to you as to what you want to do with your investments if you choose sometime between now and the election or even after the election before the end of the year to either liquidate your investments yourself if you feel like it’s a good time to do so and move all those funds back into your HSA cash account then that’s up to you to do but we can’t give investment advice we’re not allowed to do that great thanks Keith thanks for that clarification um next question is regarding a parent is on Medicare and a tax dependent can they uh use their parents prescriptions and other health care costs against the HSA or use their HSA to pay for those costs Linnie could you take that one i can so the parent if they’re a tax dependent they could use their own HSA to pay for that person’s uh any eligible medical expenses the tax dependent or spouse if they’re on medicare is irrelevant it only is relevant if the account holder themself is on Medicare and if they’re on Medicare they can no longer contribute to their HSA but they can continue to spend the funds for their their spouses and their tax dependents eligible expenses great thank you Keith I know you covered this about how the withdrawals will work but we had a question about FSAs can we still make limited FSA withdrawals for dates of service in 2020 after the March deadline for claims so Heather or Keith could you take that or clarify

sorry Joan I had muted myself I’m not sure that i really understand the question but I will rephrase uh what i had said earlier and was this i’m sorry was this about limited purpose FSA or medical FSA limited FSA okay so for limited FSA the way this will work you can continue to use your pay flex funds and your PayFlex debit card up through 12 31 on that date your Payflex debit card will be shut off and you will no longer have access to those funds you can file paper claims with pay flex from 11 21 through 4 30 21 if you have any funds remaining in your account less than five hundred dollars if you have a limited purpose fsa with a balance greater than 500 on new year’s eve this year you will forfeit that balance over 500 dollars so be sure to spend those funds prior to that date any balance of 500 or more will carry over into your optum lfsa if you enroll in that for next year but this one year only we’re really suggesting that you don’t do that because typically you would have those funds the first week of the following year added to your new year election this year that will not happen until sometime in early July so if you have an L-FSA with 500 or less and in January you’re only going to have your Optum L-FSA that 500 left with pay flex is going to sit out there with them until they can finish processing everybody’s run out claims from 2020 during April through i’m sorry January through April of next year and then they can send the bulk file sometime in June to optum so just really want to encourage everyone to spend down as best you can even to zero your balance in your L-FSA or your medical FSA this year because you don’t want to wait until sometime in late June or early July to get those funds added over to your Optum balance i wouldn’t okay thank you thanks keith we’ve had a couple of questions about the fees um regarding their uh someone has a health equity account they had an admin fee of 250 a month and a paper statement fee of a dollar lenny can you explain any fees related with the HSA measure can so with the Optum Bank HSA the only fee that an account holder would uh be subject to at this point if they’re in the um state of tennessee ccbhp or local cdhp plan and have an hsa is if they choose to use their card in an atm using a pin there would be a 2.50 fee paid to optim bank and perhaps an atm fee charge from the owner of that atm machine but there are no you know statement fees or other types of transactional type fees okay thank you we’ve we’ve also had a couple of questions i think from abcs about forms and hsa payroll and we are going to cover some of that next week and the forms will be posted on the abc webpage so i’m just covering that generally that we will be covering some of that information next week um we still have we have some additional investment questions um joan yeah go ahead can i i know that i’ve already said this earlier on the call but i’d like to i guess repeat it for anyone who might not have heard or understood and just let everyone know that this is the process as far as your pay flex hsa funds going over to optum i just want to reiterate what we’re planning on working on doing now with both vendors this is kind of an in-process kind of thing so if it changes we will let everyone know but the plan again for now is if you have any funds in your hsa with pay flex right now our plan is that you will be able to continue using those funds on your pay flex health savings account debit card through february 7th of 2021 on that date your card will be shut off and you won’t have access to your funds anymore you can’t make deposits you can’t take money out or pay a provider so for about a three week period you will no longer have access to your existing pay flex balance and then the funds will be sent over to optum that’s our plan and that’s what we’re working on now but we’re still in discussions with both vendors about how this is going to work so i just want to reiterate to everyone on the call that’s what we’re working on and that’s what we’re working toward if that changes in any way we have everyone who has an hsa we have their email address and you should have

received an email from benefits administration earlier this week if that changes in any way or we find out something differently over the next couple of weeks we will put together something and email it to you so just stay tuned to your to your email box but that’s what we’re working toward and your funds would then show up over in your Optum HSA hopefully that first week of March great thank you thanks keith we’ve you’ve clarified a lot of the investment we’ve had some other questions about that so i’m going to move to a question that um somebody’s asking about they’ll be adding a spouse to their CDHP um and their spouse had um they have separate HSA accounts can you tell how the change from an individual to a family CDHP will affect their individual HSA funds moving to Optum are they able to combine or move both of our HSA funds to one Optum family account in 2021 Linnie could you answer that yes i can um actually i love that idea but the irs does not yet account for family hsa actual accounts each account is individually owned by one person and one person only so if a family has a choice of each having an individual account and for 2021 the individual contribution limit is 3 600 dollars or one of the spouses provided both are covered by a CDHP health plan one of the individuals can contribute up to 7 200 to cover both individuals but in both cases the accounts would be owned by one person so if i was the account owner and i put seven thousand two hundred dollars in for me and my spouse i technically own all of that money even though my intent is to have it for the family hopefully that clarified the question great thank you again if you we’re for not getting your question or we need to answer something specific send it to benefits.info at tn.gov uh next question this was carryover for hsa does it count as part of next year’s contribution if i choose to close the hsa how is the money remaining in the account returned to me i don’t know if they mean an fsa or if it’s if they’re talking about it closing or an HSA or moving to a PPO but with an HSA you you keep that money in that account um and that money rolls over Keith or Heather is there anything you want to add the health savings account is yours and it and it it carries over from year to year so if i’m understanding the question correctly it almost sounds like this person has funds in an in a pay flex health savings account and they perhaps may not be planning on enrolling in the CDHP again next year if that’s the case your funds will stay in your payflex HSA they will not get moved to Optum uh you will become responsible for paying the monthly administrative fee that the state group insurance program has been paying while you’ve been enrolled in the CDHP and flex will take that monthly administrative fee I believe it’s four dollars out of your account those funds remain yours say for example uh you’ve got five thousand dollars in your PayFlex HSA and you want to switch to the standard PPO or premier PPO for next year you can do that it’s just that 500 will stay over there in your PayFlex HSA and then each month they’ll take out the administrative fee you can use those funds uh going forward for yours and your spouses and other eligible health care uh eligible tax dependents for their eligible health care expenses and your pay flex debit card will continue to stay active in that regard it’s a retail account if you will it’s really just a personal account between you and PayFlex I hope I answered that correctly great um next question can HSA funds be used to cover medical expenses for a son that is not that is on my health insurance he’s under 26 even though i cannot claim him as a dependent on federal income taxes because of his earned income level yeah according to the irs the answer is no um has to be a spouse or a tax dependent the uh uniqueness of the situation if any should probably be discussed with a tax preparer advisor or legal um you know maybe there’s always unique circumstances where there might be shared support why you’re not claiming them as a tax dependent so those could be discussed with your legal counsel the irs answer is no okay

thank you I had another question sent to me regarding payroll deductions for state employees so please clarify payroll deductions are made for state employees for their contributions or do I have the option of making a personal deposit to the HSA account Keith and Heather you can do both correct yes you can do both um if you sign up for the cdhp your state employee and you sign up for the cdhp in Edison this fall you’ll be asked how much do you want to contribute to your HSA you’ll plug that amount into Edison you need to take into account the fact that the state will contribute seed funds to your account in January for you as well if you have single coverage the state will put in 250 and if you have any of the other coverage types for more than one person the state will put in 500 that also counts toward that maximum so 3 600 is the max if you have single coverage next year 7 200 if you have any of the other family coverages you need to back out of that the 250 or the 500 the amount that’s left over after that will then be taken out of each of your paychecks whether you’re paid 12 times a year or 24 times a year you can opt to make an after tax uh contribution to your account you could do that online on the paper sorry the Optum website you could connect your checking account and you could uh you know if you have some extra money and you want to put in an extra 100 you can do so provided you’ve not already maxed out your contributions it’s your responsibility to make sure that you don’t go over the irs limit to contribute the max but say in this example the max is thirty six hundred dollars and you have single coverage but you’ve only elected to put in two thousand dollars then sure anytime you have some extra funds you can be sure that you’ve already connected your account and you can put in some after tax funds and then it tax filing time the following april you can take an above the line tax credit deduction there great thanks Keith i had a question sent to me what is the last day to access pay flex HSA or limited FSA funds so the the limited FSA funds your debit card will shut off on twelve thirty one twenty if you have a balance greater than five hundred you’ll forfeit that balance a balance less than five hundred dollars can carry over into your optum L-FSA if you have one next year and that will be added to your Optum L-FSA in late June or by July 1st if you do not enroll in an Optum account for next year then and you have a balance in your pay Flex L-FSA of less than 500 they will still get those funds late next June early July and optum will open an account for you to put those funds in and they’ll send you a debit card there is no deadline other than filing claims from 2020 for payflex if you have any claims from 2020 those have to be filed with pay flex by april 30th of next year with your pay flex HSA as i’ve mentioned a couple of times the plan right now is that your pay flex HSA debit card will be shut off on February uh eight of next year and you will not be able to access those funds and if that changes we’re going to email all hsa participants great you answered another question that we had about when the pay flick if the PayFlex card will work after December 31st um next question why are there two cards for the HSA convenience or is there one for L-FSA and one for HSA Linnie could you answer that i will and i appreciate that question i should have clarified during the presentation there are two cards so that two people can have access to the account so whatever accounts we’re enrolled in if it’s an hfa both cards will work for two different users for the HSA if someone selected an HSA and a limited purpose account both cards will work for two users for both the hsa and the limited purpose two cards are provided for convenience so someone can hand the card to a spouse or a tax dependent if the second card isn’t needed you know it could be destroyed if you didn’t want to have that laying around okay great thank you i think that is those are all of the questions that i had did Linnie or keith did you have anything or heather sent anything to you privately i have not had any sent to me privately heather had to drop

um i did see one question that i’m not sure if we answered this or not um sorry um let me scroll there’s a lot of questions i want to make sure while you’re scrolling there keith i will say i don’t have anything privately but I do want to disclose that on this slide that is being displayed right now that shows the optim bank customer care number there is a typo it should be 866 600 4984 just in case anyone is jotting that down there was a question about funds availability from annual enrollment and not as a new hire so to clarify there if you’re a state or higher education employee and you enroll in flex this fall your medical FSA and your limited purpose FSA you’ll have access to the entire election amount in early January not your HSA and not your dependent care FSA anyone who’s a new employee during the year as well so someone starts in mid-year the same thing happens they’ll have their full balance available within a few weeks after they make their elections and they get their card their full balance or election will be available to them for medical FSA and L-FSA Keith we did have another question if both spouses work for state and higher education one has employee plus children the other has employee only coverage can they both have hsa accounts and what are the limits okay yes the hsa is a keep in mind it’s a it’s an individual account itself you can have different coverage but the account itself is in your name only so if you both work for the state or one works for state and one works for higher education one of you has single coverage the other one has family coverage you can each enroll in the CDHP uh one of you would get two hundred fifty dollars in seed funds the other would get five hundred dollars in seed funds and you can the one with single coverage could uh put in up to thirty six hundred dollars next year and the one with family coverage could put in up to seventy two hundred dollars total next year and i’m also not sure if we mention this or not Linnie but anyone who is 55 or older can make an additional one thousand dollar contribution catch-up contribution each year great point yes and you can also use your funds so in the example that the person asked the question uh you can use your funds to pay for your spouse and your children’s health care expenses and vice versa great um I had another one privately if someone goes on Medicare and only works part of the year is the hsa payment prorated for only the months they work Keith is that correct the HSA payment i’m assuming they mean their premium um yeah their contribution yeah i i don’t know the answer to that that’s one that we would need for them to email benefits.info at tn.gov and let our operations team uh do some research to clarify and there are a couple others that were questions about hsa about money carryover and i think we clarified again that that money does roll over if you stay in the CDHP or seat or the local CDHP excuse me if you’re staying enrolled in the cdhp or local cdhp and you have funds in your health savings account those funds carry over from year to year i think i’ve said this a couple of times but the plan right now is that your balance will carry over from payflex to Optum sometime in uh probably the first week of march that’s what we’re working toward again if you have a couple of thousand dollars in your pay flex hsa you’ll be able to continue using your HSA debit card through February 7th then on February 8th that account will be shut off and you’ll no longer have access to it until the funds can be liquidated and transferred everyone’s funds and one big bulk transfer over to Optum that’s what we’re working toward and that’s what we’d like for everyone to know at this point if that changes in any way as we continue to work with these two vendors on that process we will email everyone with an HSA Linnie one one quick question is a debit card going to process the OTC medications for HSA or will a person have to pay out of pocket and then be reimbursed so it will it should process it it really depends on where they’re making that purchase and if that merchant has updated equipment to allow for that with an hsa because it’s a Mastercard it typically is accepted anywhere Mastercard is accepted so I don’t

see that uh participants should have an issue with that i think that that’s more of a consideration with the fsa card because that is completely tied to what is being purchased and what is being used and in that case the merchant equipment would have to be updated uh for the fsa card to be accepted if it isn’t they could um do a reimbursement on that hey Joan I know we’ve gone way over and we’re gonna have to drop soon but there’s two questions i’d like to be sure that we that we uh answer is that okay sure go ahead so so there’s one can we withdraw funds from the payflex HSA and deposit those into the Optum HSA in January 2021. it sounds like you’re wanting to do that yourself and the answer to that is yes you can you would just need to contact after your optum hsa is up and running in january and you’re able to log into your account you can see your account number you have all that then just feel free to log on to your payflex account I believe they have a form on their website or you can contact them their telephone number is on their website Crystal if you don’t mind will you put stateoftn.payflexdirect.com in the chat there that is the payflex splash page website you can then contact payflex yourself in January and request a form to have your funds if you have investments have those liquidated and then you can just tell them where you want those funds to move yourself you don’t have to wait on on us to try to do that yourself anyone can do that themselves then there was another question how do we get an EOB well you’re you should be set up to either receive your medical dental vision or any other EOBs either in the mail or hopefully you’ve set up an account with Blue Cross Cigna MetLIfe or one of the other vendors to receive your EOBs via email that’s what most folks do but you you can get your EOBs through email or us mail but you’ll need to log on to the different vendors websites to do that thank you Keith I saw that just saw those at the end there um I think we have tried to get to every question we could um there was one Becky that I’ve wanted to get to but I’m not sure what the question is so i’m going to contact you directly um so that concludes today’s unless we have anything that comes in at the last minute you’ll see on the screen the additional or the other webinars that we have that will continue through the rest of we have tomorrow we will have additional or pardon me next week we’ll have additional webinars life insurance and dental options you can register for those by going to partners for health at tn.gov slash partners for health and clicking on annual enrollment in the top navigation and then going to about enrollment to register for the remaining webinars again we will post the recordings of these on a partners for health youtube page found by going to the videos link at the top of the home page and then going to 2020 employees webinars that’s where we will also post the link for this session next week as well we also have our employee benefits webinars these are different they will cover the benefits options changes and premiums and you can ask additional questions you can register for these by going to tn.gov slash partners for health then clicking on annual enrollment in the top navigation and then about enrollment to register you only need to attend one session they’ll cover the same information but again the dates and times are on the screen and lastly if we didn’t if we weren’t able to fully answer your question or if you have additional questions please send them to benefits.info at tn.gov or you can go to the partners website click the green button to chat with a representative during business hours or you can call and speak with our service center at 800-253-9981 or 615-741-3590 monday through friday 8 a.m to 4 30 p.m Central Time I know we went way over on time so thank you all so very much for staying with us again we will post this session on the partners youtube page next week thank you all for joining and have a great afternoon you