Spending Accounts

Health Savings Accounts

A health savings account (HSA) allows your employees to save for healthcare costs in a tax-advantaged account. When used in conjunction with a Medical Mutual qualified high deductible health plan:

• Contributions are made tax free
• The HSA balance earns interest tax free
• Qualified medical expense payments from the account are tax free, including payments made for IRS-eligible dependents

My Health Plan

Medical Mutual’s HSA has no monthly account administrative fees for your employees and allows them to manage their COSE Benefit Plan and Medical Mutual benefits and HSA together through My Health Plan, Medical Mutual’s secure member website. Once an employee enrolls in the HSA and registers for My Health Plan, they will be able to:

• Track HSA and investment balances
• Pay for qualified medical expenses
• Invest in mutual fund options (a minimum balance may be required)
• Report and reissue a lost or stolen debit card
• Access tax forms
• Use all the health benefits resources on My Health Plan
• Use a Medical Mutual debit card to pay for qualified medical expenses, including doctor visits, prescriptions and more

Employer Access

As a plan sponsor, the Medical Mutual HSA provides you full administrative access to your employees’ HSA plans. You’ll be able to:

• Manage employee enrollment and verify employee participation
• Change employer/employee contributions
• Manage all reporting

Flexible Spending Accounts

A flexible spending account (FSA) is a tax-free account an employee funds and uses to pay for out-of-pocket healthcare costs. The employee’s pretax contribution to the FSA lowers the employer’s Federal Insurance Contributions Act (FICA) tax liability and may help save on other taxes. Depending on the FSA, employees can be reimbursed for expenses related to healthcare, vision and dental expenses; work-related transportation; and dependent daycare.

Medical Mutual offers several FSA options to meet the needs of your employees:

Medical FSAs

For expenses related to certain out-of-pocket healthcare costs, including deductibles, copays, prescription medications and medical equipment.

Limited Purpose FSA

For dental and vision expenses only and can be paired with an HSA.

Child Daycare, Elder Care and Adult Daycare Account Options

To pay for the care of dependent children under age 13 or dependent adults who cannot care for themselves.

Commuter Benefit Accounts

For parking or public transportation expenses related to commuting to and from work.

The amount employees can contribute to medical FSAs are subject to IRS guidelines and annual cost-of-living adjustments. You can decide whether employees have to forfeit the funds or can carry over up to the federal limit, as defined by the IRS, into the next plan year. Employees who have an HSA are prohibited from keeping funds in a medical FSA, but can combine funds with a limited-purpose FSA.

Health Reimbursement Arrangements

A health reimbursement arrangement (HRA) is an IRS-approved, employer-funded, tax-advantaged employer health benefit plan that reimburses employees for out-of-pocket medical expenses. HRAs cover medical expenses that are subject to the deductible incurred by your employees, their eligible spouses and dependents.

An HRA from Medical Mutual:

• Allows you to custom build an HRA plan to meet the size and budget of your business
• Provides employees quick and efficient claims processing by Medical Mutual without claim submission
• Tracks HRA activity for the employee on their Explanation of Benefits (EOB) and online through the My Health Plan