In October, ACS Mellon HSA Solution will begin a new unified investment program that will provide 20 exceptionally rated no-load funds from a variety of fund families with no minimum investment.
This new investment option will affect both group and individual members enrolled in a Blue Options HSA. These significant changes include:
- Dreyfus will be replaced by SaveDaily as the fund manager
- ACS Mellon HSA account holders can start investing, with no minimum investment, once their HSA checking account balance is $2000 (Dreyfus required a $3000 checking account minimum for first investments and a $1000 minimum investment)
- There will be a new monthly fee of $2.90 for users of the new investment platform
Producer managers can be contacted with questions about any of these changes.
An Internet site that uses character scenarios to walk consumers through a new health plan option has netted a top Web development award for Blue Cross and Blue Shield of North Carolina (BCBSNC). The Web site, experiencehsa.com, won an Outstanding Achievement Award for Web Site Development from The Web Marketing Association. The award was in the Health Care Standard of Excellence category.
“BCBSNC understands the complexities surrounding consumer-driven health care,” said John Roos, chief sales and marketing officer at BCBSNC. “As the state’s leading health insurer, we believe it is our obligation to help members, prospects and insurance brokers understand how these new types of health plans work.”
In 2006, BCBSNC’s marketing teams were looking for a different way to engage and inform employer group customers about the new Blue Options HSA product. Blue Options HSA pairs a popular PPO plan design with a tax-advantaged health savings account.
“We knew it would take more than a brochure to help customers understand Blue Options HSA. This was a totally new experience, not only for our customers, but also for our company. So we created a totally new online experience that matched the uniqueness of the product,” said Roos.
The Web site helps explain an HSA to users in two ways. They can choose to go through a straightforward product overview or learn about Blue Options HSA through the “experience” of five different characters. The character scenarios use humor to drive home the message of how the product is a good fit for many different types of people, not just the tax-savvy.
To learn more about Blue Options HSA visit the award-winning Web site at www.experiencehsa.com.
Learn more about Blue Options HSA or get a personalized quote for Blue Options HSA.
[Via BCBS Association]
Blue Options HSA is a new way to pay for health care. This plan pairs a high deductible PPO heath plan with a health savings account (HSA). The high deductible health plan allows you to pay lower premiums than a traditional plan while still enjoying the security of protection against high medical bills. The HSA allows you to access significant tax savings and can be used to pay for current and future medical expenses tax-free. When your balance reaches a certain amount, you can also choose to invest in a selection of mutual funds.
- Lower premiums
- Tax savings now and in the future
- The option to invest in mutual funds
Blue Options HSA is built around BCBSNC’s most popular plan, the PPO. And with Blue Options HSA, you have access to the largest provider network in the state and the freedom to go outside that network. You also have access to specialists without referral, coverage when you travel and BCBSNC as your health care partner.
At a nonparticipating provider, your out–of–pocket cost may be higher and, if your benefits have started, you may have to file a claim. When you visit a network provider after your benefits become active, you will not have to file a claim.
- In and out–of–network coverage
- Access to the largest provider network in the state
- The freedom to see specialists without referral
- Coverage across the nation and worldwide
- BCBSNC as your health care partner
Enhanced preventive care benefits
Preventive care is vital to your health and safety. That’s why we’ve made sure you’re covered for a variety of preventive care services, even before your deductible is met. Just visit your provider like you normally would and show your BCBSNC ID card. You’re covered at 100% when you receive the following preventive care services in an in-network office setting:
- Immunizations and well-baby and well-child care (excluding diagnostic tests and screenings)
- The first office visit (excluding diagnostic tests and screenings) each benefit period for routine physical exams, gynecological exams and the evaluation and treatment of obesity.
- The following first preventive care diagnostic test and screening each benefit period (excluding related office visits except as noted above) for the following:
- Cervical cancer screening
- Ovarian cancer screening
- Screening mammograms
- Colo-rectal screening
- Prostate specific antigen tests
- Newborn vision and hearing screening
- Cholesterol and lipid screening
- Bone mass measurement screening
- Hemoglobin test
Additional covered preventive care services and/or diagnostic tests and screenings, including those not listed above, are subject to deductible and coinsurance.
It is Easy to Switch From Blue Advantage to a HSA
Just call 1-800-639-4325 and one of our licenced agents guide you through the process.
The House of Representatives approved the Tax Relief and Health Care Act of 2006 (H.R. 6111) (”the Act”) on December 8, and it was approved by the Senate on December 9. President Bush signed the Act into law on December 20, 2006. Most provisions apply to taxable years beginning after December 31, 2006.
Note: Read the following provisions carefully. Some have applications to both our Blue Options HSA product for Groups and Blue Options HSA for Individuals, while others may apply to our group product only.
The Act provides for the following:
- Modifies the limit on contributions to HSAs. Currently, HSA maximum
contributions are limited to the lesser of (i) 100% of the annual deductible limit of the high deductible health plan (HDHP) or (ii) $2,850 (self-only) and $5,650 (family coverage) for 2007. Under the new provision, eligible individuals will be able to contribute up to $2,850 (self-only) and $5,650 (family coverage) for 2007, regardless of the annual deductible amount.
- Allows individuals who become covered by a HDHP mid-year to contribute up to the full annual limit. Currently, if an employee or individual joins an HDHP mid- year, the maximum amount they can contribute to the HSA must be prorated for the months the employee did not have HDHP coverage as of the first day of the month. Under the new provision, an employee who becomes eligible for a HDHP mid-year
may make a full HSA contribution for the year. However, the contributions made for the months preceding their HDHP eligibility may be includible in gross income and subject to a 10% additional tax if the employee loses eligibility for the HDHP during the 13 months following the date of contribution. The tax would be incurred during the taxable year of the month the employee loses eligibility.
- Permits transfer of balance from an FSA or HRA to an HSA. Currently, funds may not be transferred from an FSA or an HRA to an HSA. Under the new provisions, the employer may allow for a one-time transfer from an FSA or an HRA. The maximum balance that may be transferred is the lesser of the balance of the account as of September 21, 2006 or the balance on the date of the transfer. The transfer may be made on or after December 20, 2006 until January 1, 2012. The transferred amount is not subject to maximum contributions limits. If allowed by the employer it must be allowed for all employees. However, the contributions made for the months preceding their HDHP eligibility may be includible in gross income and subject to a 10% additional tax if the employee loses eligibility for the HDHP during the 13 months following the transfer date. The tax would be incurred during the taxable year of the month the employee loses eligibility.
- Permits a one-time transfer from an IRA to an HSA. Currently, funds may not be transferred from an IRA to an HSA. Under the new provision, the employee or individual may chose to have a one-time rollover from an IRA to an HSA. The amount of the rollover is subject to the maximum HSA contribution limit for the year. However, the contributions made for the months preceding their HDHP eligibility may be includes in gross income and subject to a 10% additional tax if the employee or individual loses eligibility for the HDHP during the 13 months following the transfer date. The tax would be incurred during the taxable year of the month the employee loses eligibility.
- Requires earlier announcement of Cost of Living Adjustments applicable to HSAs. Annual cost of living adjustments (used to index HDHP minimum deductibles, out-of-pocket maximums, and contribution maximums) will be announced by June 1 of each year.
- Permits higher HSA contributions for non-highly compensated employees. The new provision provides an exception to the requirements that employers must provide comparable HSA contributions to all employees, permitting employers to make higher contribution for non-highly compensated employees.
- Allows coverage under a health FSA during the “2 1/2 Month Grace Period” to be disregarded for eligible employees who have a zero balance in their HSA for the previous year. If an employee has an FSA grace period of 2-1/2 months or less at the beginning of the plan year, the new provision provides that if an eligible employee has a zero balance in their FSA (either through depletion or through a transfer of the balance to an HSA) the employee may contribute to their HSA during the grace period. This provision is effective December 20, 2006.
If you have any questions, please refer to the Department of Treasury web site at http://www.treasury.gov or contact your BCBSNC representative.