2021 spending accounts and health savings …

September 29, 2020

2021 SPENDING ACCOUNTS AND HEALTH SAVINGS ACCOUNT

ANNUAL ENROLLMENT OVERVIEW

Presented by:Vaune Rohlfs, Assistant Director, Spending AccountsChristina Smith, Solutions Analyst, Spending Accounts Services

Replay Link:

https://engage.vevent.com/rt/mmc/index.jsp?seid=7073Passcode: MMCwebcast

https://engage.vevent.com/rt/mmc/index.jsp?seid=7073

1October 1, 2020MARSH & McLENNAN AGENCY, LLC • Trion

2021 Spending Accounts and Health Savings Account

WHAT WE WILL COVER TODAY

• What’s New for 2021

• Flexible Spending Accounts (FSA) Overview

– What Is a Flexible Spending Account

– Health Care FSA

– Dependent Care FSA

– Limited Purpose Health Care FSA

– How to Get Reimbursed

• Health Savings Account (HSA) Overview

– What Is a Health Savings Account

• Prepaid MasterCard®

• Spending Account Service Center

• Spending Account Mobile Center

• Annual Enrollment Dates

• Contact Us

• Questions

Annual Enrollment Overview


WHAT’S NEW FOR 2021


What’s New For 2021

• The Health Care FSA and Limited Purpose Health Care FSA annual contribution limit is increasing to $2,750 (up from $2,700 in 2020).

• The Health Care FSA and Limited Purpose Health Care FSA annual carryover amount is increasing to $550 (up from $500 in 2020).

• The HSA annual contribution limit is increasing to:

– $3,600 for individual coverage (up from $3,550 in 2020)

– $7,200 for family coverage (up from $7,100 in 2020)

• Pay Your Provider

• Effective January 1, 2021, you may pay providers directly from your Flexible Spending Account(s) and/or Health Savings Account.

- Pay your eligible health care expenses online or in the mobile app and have the reimbursement sent via check directly to your provider’s office


FLEXIBLE SPENDING ACCOUNTS (FSA) OVERVIEW


What is a Flexible Spending Account?

• A Flexible Spending Account (FSA) is a benefit plan that allows you to put aside pre-tax dollars to pay for qualifying expenses

• There are three FSAs available to you:

Health Care FSA

Dependent Care FSA

Limited Purpose Health Care FSA


Health Care FSA

What Does a Health Care FSA Cover?

• A Health Care FSA can be used to pay for eligible medical, dental, and vision expenses that

cannot be reimbursed through insurance or any other arrangement.

• A Health Care FSA can be used to pay for eligible expenses incurred by you, your spouse,

and your eligible dependents.

• A Health Care FSA can be used to pay for eligible expenses incurred during the plan year

(January 1 through December 31).

Health Care FSA


Health Care FSA

Eligible Expenses

• Examinations

• Glasses (frames and lenses)

• Contact lenses and supplies

• Corrective eye surgery

Medical

• Deductibles

• Co-pays/coinsurance

• Out-of-pocket expenses

• Physical exams

• Prescription drugs

• Chiropractic care

• Contraceptives

• Over-the-counter medicines

• Testing supplies

• Hearing exam and hearing aids

• Nursing services in hospital, nursing home or your home

Dental

• Deductibles

• Co-pays/co-insurance

• Examinations

• Fillings and bridges

• Dentures

• Orthodontia –

• Covers lump sum or contract–term payments made during the plan year.

• Must provide Orthodontia contract

Vision

For the most up-to-date information, please visit: https://www.irs.gov/pub/irs-pdf/p502.pdf for Qualifying Medical Expenses.


Health Care FSA

How Does the Health Care FSA Work?

• You must make an election during Annual Enrollment

• Annual election contribution limits:

– Minimum: $120

– Maximum: $2,750

• The entire election amount is available at the beginning of the plan year

• Pre-tax payroll contributions are taken throughout the plan year

• Use the Prepaid MasterCard® to pay providers directly or get reimbursed via check or direct deposit by submitting a claim

• Time periods for incurring and submitting claims:

• Remaining balance up to $550 will carryover into the next plan year

Health Care FSA Last Day to Incur a

Claim

Last Day to

Submit a Claim

Carryover Balance

Maximum

2021 Plan Year December 31, 2021 March 31, 2022 Up to $550


Dependent Care FSA

What Does a Dependent Care FSA Cover?

• A Dependent Care FSA can be used to pay for eligible childcare and adult care expenses.

• A Dependent Care FSA can be used to pay for eligible expenses incurred for your children

under age 13 or your spouse or dependent who is incapable of self-care.

• A Dependent Care FSA can be used to pay for eligible expenses incurred during the plan

year (January 1 through December 31).

Dependent Care FSA


Dependent Care FSAEligible Expenses

Child Care/babysitting services in your home or someone else’s

(must be claimed on income taxes)

Expenses for a Day Care Center

(all state and local licensing requirements must be met)

Pre-school Expenses

After School Care

Summer Day Camp

Elder Care

For the most up-to-date information, please visit: https://www.irs.gov/pub/irs-pdf/p503.pdf for Qualifying Dependent Care Expenses.


Dependent Care FSA

How Does the Dependent Care FSA Work?



– Minimum: $120

– Maximum: $5,000*

*The combined IRS maximum is $5,000 for married couples filing jointly, $2,500 each if filing separately

• Reimbursable funds accumulate as you make contributions



• Time Periods for Incurring and Submitting Claims:

• Use it or lose it – no carryover

Dependent Care FSA Last Day to Incur a

Claim

Last Day to

Submit a Claim

2021 Plan Year December 31, 2021 March 31, 2022



What Does a Limited Purpose Health Care FSA Cover?

• A Limited Purpose Health Care FSA can be used to pay for eligible dental, vision,

preventative care, and post-deductible medical expenses that cannot be reimbursed

through insurance or any other arrangement.

• A Limited Purpose Health Care FSA can be used to pay for eligible expenses incurred by you,

your spouse, and your eligible dependents.

• A Limited Purpose Health Care FSA can be used to pay for eligible expenses incurred during

the plan year (January 1 through December 31).




How Does the Limited Purpose Health Care FSA Work?

• Available to colleagues who enroll in the $1,500 Deductible Plan or $2,850 Deductible Plan and the HSA

• Coordinates with your HSA enrollment



– Minimum: $120

– Maximum: $2,750

• The entire election amount is available at the beginning of the plan year



• Time Periods for Incurring and Submitting Claims:

• Remaining balance up to $550 will carryover into the next plan year

Limited Purpose

Health Care FSA

Last Day to Incur a

Claim

Last Day to

Submit a Claim

Carryover Balance

Maximum

2021 Plan Year December 31, 2021 March 31, 2022 Up to $550



Eligible Expenses

• Examinations

• Glasses (frames and lenses)

• Contact lenses and supplies

• Corrective eye surgery

Medical

• Preventive Care Services

• Eligible post-deductible medical expenses can only be claimed after you meet the applicable $1,500/$2,850 HDHP deductible for the plan year

Dental

• Deductibles

• Co-pays/co-insurance

• Examinations

• Fillings and bridges

• Dentures

• Orthodontia –

• Covers lump sum or contract–term payments made during the plan year.

• Must provide Orthodontia contract

Vision

For the most up-to-date information, please visit: https://www.irs.gov/pub/irs-pdf/p502.pdf for Qualifying Medical Expenses.


How To Get Reimbursed For FSA Expenses

Use your Prepaid MasterCard®

You have instant access to your account funds for:

• eligible health care and dependent care expenses

• At the point of service: the pharmacy counter, dentist, optometrist or doctor’s office, daycare center and wherever MasterCard cards are accepted.

Use the Mobile App

This application (iPhone and Android) allows

you to:

• view your balance

• submit receipts

• sign up for text messages about claims and payments

• access to your account at your fingertips

• get reimbursed by check or direct deposit

Use Online Claim Submission*

Step by step instructions guide you through the

process to submit a claim online at the Spending

Account Service Center website accessible by:

• Going to Colleague Connect https://colleagueconnect.mmc.com

• Going directly through https://trion.lh1ondemand.com

• Reimbursement is made via check or direct deposit

* Appropriate documentation is required. You must include supporting

documentation with claim submission.

Mail or Fax Claim Submission*

Claim forms can be found on the Spending Account

Service Center website accessible by:

• Going to Colleague Connect https://colleagueconnect.mmc.com

• Going directly through https://trion.lh1ondemand.com

• Reimbursement is made via check or direct deposit

* Appropriate documentation is required. You must include supporting documentation with claim submission.

https://colleagueconnect.mmc.com/

https://trion.lh1ondemand.com/

https://colleagueconnect.mmc.com/



HEALTH SAVINGS ACCOUNT (HSA) OVERVIEW


Health Savings Account

What is a Health Savings Account?

• A Health Savings Account (HSA) is a tax-advantaged savings account that allows you to set aside tax-free dollars to pay for qualifying medical expenses or to use during retirement

• An HSA is a bank account, not a benefit plan. You own it, so it stays with you even if you change employment or retire

• An HSA has two parts: Cash Account (interest-bearing and FDIC insured) and an optional Investment Account (to support long-term investment goals)

How Does the HSA Work?

• You must enroll in the HSA-qualified $1,500/$2,850 Deductible Plan

• You may elect to make pre-tax payroll contributions or make after-tax contributions online

• IRS contribution maximums apply for each tax year (January 1 – December 31)

• Use the Prepaid MasterCard® to pay providers or withdraw funds online via direct deposit

Maximum Contribution Per Year 2021

Individual Coverage $3,600

Family Coverage $7,200

plus $1,000 annual catch-up contribution for age 55 and over



Does the Company contribute to my Health Savings Account?

• If your salary is less than $55,000 a year, you are eligible to receive a Company contribution into your Health Savings Account.

• The Company will contribute $300 for individual coverage and $600 for family coverage.

• The full annual contribution amount will be deposited into your account once your Health Savings Account enrollment becomes effective.



What Does an HSA Cover?

• An HSA can be used to pay for eligible medical, dental, and vision expenses that cannot be

reimbursed through insurance or any other arrangement.

• An HSA can be used to pay for eligible expenses incurred by you, your spouse, and your

eligible dependents (even if your spouse/dependents are not covered by your High

Deductible Health Plan).

• An HSA can be used to pay for eligible expenses incurred from the opening date of the

account onward.

• An HSA can be used to pay for non-eligible expenses but a tax penalty will apply.

• Eligible expenses* include, but are not limited to:

– Deductibles, copayments, and coinsurance

– Prescription medications

– Glasses, LASIK eye surgery and contact lenses

– Dental and orthodontic services

– Chiropractic and acupuncture treatments

*For the most up-to-date information, please visit: https://www.irs.gov/pub/irs-pdf/p502.pdf for Qualifying Medical Expenses.



What Rules Apply to an HSA?

• Contributions can only be made if you are actively enrolled in the HSA-qualified $1,500 or $2,850 Deductible Plans

• Contributions cannot be made if you are enrolled in any other medical plan that is not an HSA-qualified plan (including yours or your spouse’s Health Care FSA)

• You cannot make HSA Contributions if you are claimed as a dependent by someone else

• Earnings and withdrawals are tax-free for qualified health care expenses but are subject to a tax penalty if used for non-qualified health care expenses

• After you turn 65, HSA funds can be withdrawn for any reason, however you will need to pay income taxes on this money if you use the funds to pay for non-qualified health care expenses

• New HSA accountholders must accept HSA terms & agreements before funds can be accessed

• New HSA accountholders will be required to go through the banking verification process and pass identification verification before the account is established

• HSA accountholders must keep supporting documents to prove distribution was for qualified health care expenses. If IRS requests receipts for verification purposes, failure to provide those receipts could result in having to pay a penalty.



How is an HSA different from a Health Care FSA?

• No claims filing. Make distributions yourself and keep supporting documentation for tax reporting purposes only

• No plan year

– Funds are available to you to save, spend, or invest without a deadline

– You can take distributions for qualified expenses at any time so long as they were incurred after the HSA was established

• Funds are made available to spend and/or invest as you contribute

• Contributions may earn interest or be invested

• Account is portable – take it with you if your employment changes

• You may adjust your contribution amounts at any time



Special Considerations

• When contributing to an HSA, you cannot enroll in the Health Care FSA but you may enroll in the Limited Purpose Health Care FSA

• An Investment Threshold may be set up to automatically divert funds from your Cash Account to your Investment Account once you accumulate an HSA balance of at least $1,000

• Investment funds are not FDIC-insured. Invested funds are subject to risks, including changes in values and the possible loss of the amount you invested

• Funds in both the cash account and investment account can be used to pay for eligible health care expenses. If needed, you can transfer the investment monies back into the cash account to pay for expenses. Such transfers take approximately 72 hours to complete

• If you have an HSA account with another Trustee/Custodian, you can transfer the funds to the Trion HSA to avoid administrative fees. Transfer forms can be found on the Spending Account Service Center portal under the “Tools & Support” tab. Complete the Transfer Form and send it to the previous Trustee/Custodian for processing.

• You may establish a Health Savings Account with any trustee you choose. However, you can only make before-tax contributions to the Health Savings Account made available through Trion.



HSAs and Medicare

• If you are eligible for and enroll in any part of Medicare, you are no longer eligible to contribute to an HSA since Medicare Plans do not fit the criteria for an HSA compatible plan.

• If your spouse enrolls in Medicare, you do not lose your eligibility to contribute to a HSA account, as long as you are not enrolled in Medicare.

• You are eligible to contribute to your HSA at the coverage level you have enrolled in (individual or family), regardless of your spouse’s enrollment in Medicare, as long as you are not enrolled in Medicare yourself.

• If you are enrolled in Medicare, and your spouse is not, and you cover yourself and your spouse under the $1,500 or $2,850 Deductible Plan, then your spouse may be eligible to open and contribute to their own HSA account through another employer or with another bank.

• You may continue to contribute to your HSA account when you turn age 65, as long as you continue to delay your enrollment in Medicare coverage.

• Once you enroll in Medicare and are no longer eligible to contribute to your HSA, you may continue to take tax-fee distributions from your HSA account for qualified expenses.

• If your spouse is enrolled in Medicare, you may still use your HSA to reimburse your spouse’s qualified expenses.

• You cannot reimburse your own Medicare or a spouse’s qualifying retiree policy premiums tax-free from your HSA until you, the accountholder, turn 65.



Employee

HDHP

No Medicare

HSA-Eligible

Spouse

HDHP

Medicare Enrollee

HSA-Ineligible

Employee

HDHP

Medicare Enrollee

HSA-Ineligible

Spouse

HDHP

No Medicare

HSA-Eligible

*Chart assumes that employee & spouse do not participate in any other disqualifying coverages

(1) MMC’s HDHP are the $1,500 and $2,850 Deductible Plans

HSAs and Medicare • Employee is enrolled in MMC’s HDHP(1) with family coverage.*

• Employee is enrolled in MMC’s HDHP only, but spouse has both HDHP and Medicare coverage.*

• Employee is eligible to open an HSA, and can contribute up to the family HSA maximum.

• Spouse is not eligible to contribute to his/her own separate HSA.

• Employee and spouse can access funds to pay qualifying expenses, but can not be used to pay for Medicare premiums until the accountholder of the HSA reaches age 65.

• Employee enrolled in MMC’s HDHP with family coverage, and also has Medicare coverage.*

• Spouse is enrolled in MMC’s HDHP only.*

• Employee is not eligible to contribute to an HSA.

• Spouse is eligible to contribute to his/her own separate HSA and contribute up to the family HSA maximum

• Employee and spouse can access funds to pay qualifying expenses, but can not be used to pay for Medicare premiums until the accountholder of the HSA reaches age 65.


PREPAID MASTERCARD®


What is the Prepaid MasterCard®?

All card transactions are automatically deducted from your spending account or HSA balance.

Using the Prepaid MasterCard® helps keep cash in your wallet. No more claim forms, so no more waiting for reimbursement.

Just swipe and go, it’s that easy!

The Prepaid MasterCard® is a special-purpose MasterCard® that gives you an automatic way to

pay for eligible expenses. The Prepaid MasterCard® lets you electronically access the amount

you elected to contribute to your Health Care FSA, Limited Purpose Health Care FSA,

Dependent Care FSA and HSA.


Important Facts About the Prepaid MasterCard®

Set of 2 Prepaid MasterCards® provided upon initial enrollment

Five year expiration date – cards are good for 5 years from date of issue and reloaded annually, so keep your cards

Replacement/Lost/Stolen cards (set of 2) - $10.00 fee

HSA terms & conditions must be accepted to access HSA funds with the Prepaid MasterCard®

Save itemized receipts for every card transaction. You may be asked to provide receipts for some FSA transactions to verify expense eligibility. If not provided timely, your card access will be suspended and you will be asked to pay back the account

REMEMBER TO ACTIVATE YOUR PREPAID MASTERCARDS® AS SOON AS YOU RECEIVE THEM IN THE MAIL


Important Facts About the Prepaid MasterCard®

• Who will receive Prepaid MasterCards®?

– Employees who newly enroll in a Spending Account/Health Savings Account

– Members who reorder a card

– Members who report a lost or stolen card

– Members whose card is expiring

• Important Note:

– Those who have the red Benny® Prepaid MasterCard® can continue to use this card up until its expiration date. There is no need to order new cards. Your existing card will still work to access your current account balances until it reaches the expiration date.

– The MMA Blue Card Prepaid MasterCard® will function exactly the same as the red Benny® Prepaid MasterCard®.


SPENDING ACCOUNT SERVICE CENTER


Spending Account Service Center Home/Dashboard


Spending Account Service Center

Pay My Provider



Account Summary/Tools & Support



Profile/Message Center



HSA Portfolio Performance


SPENDING ACCOUNT MOBILE CENTER


Mobile App For Flexible Spending Accounts and HSA

• Download the Spending Account Mobile Center App at the App Store or Google Play

• The mobile app allows you to:

– Pay provider for FSA or HSA

– View your FSA and HSA balances and account activity

– File FSA claims with receipt images

– Make HSA distributions and contribution

– Manage HSA Investments

– Expense Tracker

– Eligible Expense Scanner

– Receipt Organizer

• Login:

– Username: MMC+EmployeeID (e.g.MMC123456)

– Default Password: Last 4 of SSN

Available for download for iPhone®, iPod Touch®, iPad®, or Android®-powered devices.


ANNUAL ENROLLMENT DATES


2021 Health and Benefits Annual Enrollment

October 12 to October 30, 2020!

All benefits-eligible colleagues will be required to actively elect benefits for the Spending Accounts and the

Health Savings Account during the Annual Enrollment period.


CONTACT US


Contact Us

• Phone:

+1 866 324 4087, any business day, from 8:30 am to 5:30 pm ET

• Mail:

TrionFSA Service Department2300 Renaissance BoulevardKing of Prussia, PA 19406

• Web Site:

https://trion.lh1ondemand.com

• Fax:

+1 888 788 1928

Trion Spending Account Service Center



Questions

The Patient Protection and Affordable Care Act is a complex law. Any statements made by Trion Group, a Marsh & McLennan Agency, LLC Company concerning tax, accounting, or legal

matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as accounting, tax, or legal advice. We recommend that you seek the

advice of your own tax, accounting and legal advisers as to whether or not the health plans you select are compliant with the Patient Protection and Affordable Care Act, including the minimum

essential coverage requirements.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval

system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC Company.

© 2016 Marsh & McLennan Agency, LLC Company. All Rights Reserved.

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