Health Savings Account
High Deductible – Health Savings Account (HSA)
VPP is offering a Health Savings Account (HSA) for the Bronze HDHP plan.
• A health care account and savings account in one that helps to offset the cost of a qualifying high deductible health plan (HDHP) and provide savings for your out-of-pocket eligible health care expenses
• It’s portable. You own your HSA. It’s yours to keep, even if your employment ends. Once established, money is contributed by yourself and VPP. This allows you to use tax free dollars to pay for eligible health care expenses, like doctors’ visits and prescriptions. Deposits are tax -free, and you get tax-free withdrawals as long as the money is used toward eligible healthcare expenses. See ALEX for more detail on how to save money by using your HSA.
• If you elect the HDHP, VPP will contribute $1,100 annually, funded on a biweekly basis ($42.31 per pay period). The VPP contribution is prorated for mid-year enrollees.
• The 2023 IRS Allowance is as follows: $3,850 (single); $7,750 (family). In addition to the VPP $1,100 contribution, you will be able to contribute up to $2,750 (single) & $6,650 (family).
• There Is a $1,000 catch up contribution if you are 55 or older.
• Any unused funds at the end of the plan year will carry-over.
• If you enroll in the Silver or Gold plans, you are not eligible to enroll in a Health Savings Account.
• To be eligible for the HSA account, you must not be a participant in: another medical/prescription drug plan that is not a qualified HDHP (such as a spouse’s plan), Medicare, Medicaid, or Tricare. You are also ineligible if you can be claimed on another person’s tax return as a dependent.
How does your HSA work?
• When you visit your Cigna doctor you should never pay at time of service.
• Your doctor/facility will submit claims on your behalf to Cigna (For out-of- network claims it’s your responsibility).
• After your claim is processed and the in-network Cigna discount is applied, your doctor will bill you for your responsibility. You will also receive an Explanation of Benefits (EOB) from Cigna showing your responsibility.
• You can then use your HSA Debit Card to pay your portion. To pay, call the Doctor/Facility and provide them with your card information. If you receive a paper bill, there is a section on the bill where you may enter your card information to make a payment.
• Your HSA account with UMB will automatically be opened for you. If you do not receive a welcome package or card in the mail within 15 business days, please contact UMB customer service at 866-520-4472. Enrollment Verification number: 0044008460003
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