Frequently Asked Questions

Q. What are qualified medical expenses?
A. Your HSA can be used to pay for qualified medical expenses that apply toward your deductible. Additionally, you can pay for qualified medical expenses that your health plan doesn’t cover. Qualified medical expenses are listed under Internal Revenue Service (IRS) Code Section 213 (d) and are updated periodically. Please refer to the IRS web site (www.irs.gov, Publication 502) for the most current information published by the IRS. Typically, health insurance premiums are not considered qualified medical expenses for HSAs. However, the following may be reimbursed from HSA funds on a tax-free basis:

• Qualified long-term care premiums
• COBRA premiums
• Health plan coverage while an individual is receiving unemployment compensation
• Medicare premium and out-of-pocket expenses, other than Medigap coverage
• Employee’s share of premiums for employer-sponsored retiree health insurance

Q. Can I also have a healthcare Flexible Spending Account if I enroll in a HSA?
A. Under IRS regulations, if you are making contributions to a HSA, you are only allowed to elect a healthcare flexible spending account (FSA) that is limited to dental, vision and in some circumstances, preventative care. This is known as a Limited FSA. Please refer to your employer’s plan documents for more information.

Q. How do I access the funds in my HSA?
A. You can only spend your funds as you deposit them into your account. Purchases can not exceed your HSA balance. Using your funds is simple. You’ll receive a SHPS HSA Card that can be used anywhere Visa debit cards are accepted, such as your doctor’s office and pharmacy. Checks will also be available on request.

Q. Can I use my SHPS HSA Card to obtain cash?
A. Yes. Your SHPS HSA Card will work at any ATM network designated on the back of the card.

Q. I only have the SHPS HSA Card, and my doctor doesn’t accept Visa. How do I pay?
A. Pay your doctor with a check or cash from your personal checking or savings account, and then reimburse yourself from your HSA by obtaining cash from an ATM.

Q. Who do I call if my SHPS HSA Card is lost or stolen?
A. Call the HSA customer service center at 866-524-2562, 24 hours a day, 7 days a week.

Q. Can I write checks from my HSA account?
A. If you’d like to receive checks, please follow the ordering instructions contained in the Welcome Kit you will receive after enrolling in your HSA.

Q. Are there any forms I need to file to be reimbursed for medical expenses?
A. No. You pay for medical expenses with your SHPS HSA Card, or by writing a check if you have chosen that option.

Q. What happens if I don’t spend all the funds in my HSA by the end of the year?
A. Unused funds carry over from year to year.

Q. What is the minimum amount I can contribute to my HSA?
A. Please refer to your employer’s plan documents for the minimum monthly contribution. In general, the monthly minimum contribution is $20.

Q. What is the maximum amount I can contribute to my HSA?
A. The maximum amount you can contribute into your HSA is IRS contribution limit ($2,850 for single coverage and $5,650 for family coverage in 2007), whichever is lower. You might also be allowed to make a catch up contribution up to $800 if you are over age 55. The SHPS HSA contribution calculator can help you determine how much to contribute.

Q. Who can contribute to my HSA?
A. Anyone can contribute to an eligible individual’s HSA; however, it is the individual account holder’s responsibility to ensure HSA contributions do not exceed maximum limits.

Q. How do I contribute funds to my HSA in addition to my monthly paycheck deduction?
A. You will be mailed deposit coupons once your HSA is established. Simply mail your check and coupon to SHPS at the address provided.

Q. What happens if I contribute too much to my HSA, and exceed my maximum contribution?
A. The IRS imposes a penalty on excess contributions, but allows, under certain circumstances, for corrective distributions to be made. Additionally, you may be required to pay tax on the interest earned on those excess funds.

Q. In the event that I marry or have children, how do I change the amount of my contribution?
A. You should contact your Human Resources office.

Q. Are there any tax forms that I need to use in preparing my taxes at year-end?
A. Yes. Similar to IRAs, each January you will be sent a 1099-SA Form for any distributions made from the HSA during the calendar year. If the contributions were made by you or your employer, those contributions will be reported on your W-2 issued by your employer.

Q. What if I change jobs?
A. Call the HSA customer service center at the number on the back of your SHPS HSA Card, Monday-Friday, 8 a.m. to 8 p.m. (Eastern Time).

Q. What happens if I’m no longer participating in a high-deductible health plan?
A. You can continue to spend any funds in your HSA to pay for qualified medical expenses. However, you can no longer contribute to your HSA.

Q. How I can check the balance of my HSA?
A. You can view the balance of your HSA online by logging into your account, or your can call a customer service representative at the number on the back of your SHPS HSA Card to inquire about your balance.

Q. What if I need assistance or have questions about my HSA?
A. Call the HSA customer service center at the number on the back of your SHPS HSA Card, Monday-Friday, 8 a.m. to 8 p.m. (Eastern Time).

Q. In the event of my death, what happens to my HSA funds?
A. Remaining HSA funds shall be forwarded to your designated beneficiary or beneficiaries as indicated on your HSA Enrollment Form.