First of all, what is an HSA?
Health Savings Accounts (HSAs) are tax-free savings accounts that employees can use to pay for qualified medical expenses not covered by their high deductible health plan (HDHP).
Employers and employees can make pre-tax contributions to an HSA via payroll deduction or by direct deposit into the account via check or electronic funds transfer. The HSA must be combined with an HDHP (which covers serious illness or injury) and can be used to pay for medical expenses until the deductibles are met.
Employers and employees benefit from HSAs in the following ways:
- Tax-advantaged – Contributions are tax-free, potential interest gains accumulate tax-free and distributions are tax-free when used to pay for qualified medical expenses.
- Flexible – Funds can be used for non-medical expenses. At age 65, any remaining HSA funds can be withdrawn for non-medical reasons without penalty; ordinary income tax will be charged on the money withdrawn for non-medical reasons.
- Portable – The remaining balance rolls over from year to year; accounts move with employees even if they change employment or retire.
- A savings solution for future health needs – Unused contributions accumulate and can be saved and used for future medical expenses or to supplement retirement income. For example, unused funds can be used to pay COBRA or other medical insurance premiums during periods of unemployment or temporary layoff.
Here at eBenefits Administrators, we believe employers and employees both benefit greatly by utilizing HSAs. That’s why we partnered with The Bancorp Bank and Evolution Benefits to build a full service HSA administration platform for our clients. myHSAonline.com empowers employees with the tools and information they need to make wise and informed decisions about their healthcare.
The web site provides secure 24/7 access to:
- Account balances and history
- Deposit & withdrawal capabilities
- Important forms & documents
- Up-to-date payment history
- Recent news and benefits updates
- Account statements
Investment options
The Benny™ Prepaid Benefits Card provided by Evolution Benefits provides employees with a convenient way to access their HSA contributions. Each employee will get a Benny™ Prepaid Benefits Card that they can use for easy payment of qualified HSA medical expenses at the point-of-service. Funds are transferred immediately from the HSA at the point-of-service.
How myHSAonline.com Works
Below is a chart highlighting program rolls and responsibilities.
| eBenefits Administrators |
Evolution Benefits (Debit Card Provider) |
The Bancorp Bank (Trustee) |
- Manage relationship with employer
- Manage enrollment/eligibility
- Monitor participant’s liquid account balance
- Provide tier one customer service
|
- Issue cards and cardholder information
- Transfer information to eBenefits Administrators and The Bancorp Bank
- Validate member account balances
- Process point-of-sale transactions from MC/Visa networks
|
- Create custodial accounts for participants
- Provide welcome kits and checkbooks to participants
- Process contribution data (employer and employee credit accounts)
- Fund debit transactions with sponsor bank
- Transfer information to Evolution Benefits
- Provide account statements and reporting (1099 and 5498)
- Transfer terminated accounts to individual HSAs
- Provide customer service
|
Additional Features and Benefits
eBenefits Administrators is pleased to offer a better way for individuals to save receipts for qualified medical expenses, the Claims Lock-Up Box (C.L.U.B.). The C.L.U.B. is a secure database which stores electronic copies of receipts indefinitely for safe keeping along with any information relating to each receipt and expense.
As a Plan Service Provider, eBenefits Administrators, Inc. is authorized by the trustee, The Bancorp Bank, to help the account holder set up and manage their account in the most beneficial and compliant manner possible. The unique concept behind myHSAonline.com allows for comprehensive administration on behalf of the employer and the employee, providing dynamic administration of HSA services that other solution providers can’t (or won’t!) provide.
Learn more about the additional features and benefits listed above.
