Health Savings Account Small Group Implementation Guide Optum www.optumbank.com Page 1 Health Savings Account Small Group Implementation Guide Table of Contents Optum Bank Overview ............................................................................................. 3 Enrollment Options ................................................................................................... 3 Employer Portal ........................................................................................................ 3 Online ...................................................................................................................... 4 Paper ....................................................................................................................... 5 Account Opening Process ......................................................................................... 6 Account Number File ................................................................................................ 6 Employer Best Practices ............................................................................................ 7 Contribution Guide ................................................................................................... 8 Contribution Methods .............................................................................................. 8 Employer Portal ........................................................................................................ 8 PPD ACH .................................................................................................................. 8 Combined Sum ACH or Wire .................................................................................... 8 Employee Initiated Contributions ............................................................................ 9 Online ...................................................................................................................... 9 Check ...................................................................................................................... 9 Employer Reporting .................................................................................................. 9 Health Accounts Education Suite ............................................................................. 9 Account Holder Statements ................................................................................... 10 Tax Forms ................................................................................................................. 10 Frequently Asked Questions .................................................................................. 11 Optum www.optumbank.com Page 2 Health Savings Account Small Group Implementation Guide Optum Bank Overview Boost participation in the HSA: Thank you for choosing Optum Bank, Member FDIC, as your Health Savings Account Motivate your employees to open an (HSA) administrator. Optum Bank has over 1,000,000 HSA accounts. This guide is HSA and deposit health care dollars intended to help you set up your HSA and help ensure a smooth transition to—and high During the enrollment period, your enrollment in your HSA-qualifying health plan. We have also included links to additional employees are more likely to focus on resources to help you and your employees get the best possible value from your plan. understanding changes and making We offer the highest level of service to all our clients, from small employer groups to benefit decisions, not on how to access Fortune 500 companies. We partner with most medical insurance carriers and if your and use their health care services and health plan needs change, you can retain Optum Bank as the HSA administrator. benefits when they need them. As you guide your employees through the If you have any questions or comments, please contact our Broker Employer Service process, keep reminding them of the Team (BEST) by phone at 1-866-234-8913, option 4, Monday through Friday, 8:00 a.m. benefits of opening and funding an to 8:00 p.m. Eastern time. You can also email us at [email protected]. We account and the importance of saving will respond to your email within 48 hours. enough money in their HSA to cover their health plan deductible and co-insurance. Offer payroll contributions with Enrollment Options: tax advantages Optum Bank offers three enrollment options, one that is employer facilitated and two Employers that do not allow payroll that are employee initiated. Review each method and select the method that makes the deductions typically only see 10–15% most sense for you and your employees. of employees contribute to their HSA, leaving account balances far short of deductibles. Allowing your employees Enrollment Method Description Employer size to make contributions through pre-tax 1) Employer Portal Employer facilitated enrollment Most popular with small and payroll deductions is an effortless way through a portal. mid-size employers to increase HSA contributions. Pre- 2) Online Enrollment Employee initiated enrollment. Most popular with small and tax payroll contributions also provide Employers should provide employees mid-size employers with enrollment link and employer immediate federal income, and in some group number. instances, state income and FICA tax 3) Paper Application Employee initiated enrollment. Typically only used when no electronic savings to your employees while reducing Employer should provide employees access is available to employees. your payroll tax burden.* with applications. *Most states do not tax HSA contributions, with the exceptions of California, Alabama and New Jersey where HSA contributions are taxed. This information is subject to change. Please consult your tax/financial professional or consult your state department of Method 1 revenue for more information. Employer Portal: At OptumHealthFinancial.com, benefit managers and administrators can manage the HSA enrollment process online. This method is used commonly by mid-size and small employers. The portal allows the benefit manager to view active accounts tied to their group, enroll individuals and submit funds for active accounts. Important Note: Optum Bank can advise on general HSA rules and the daily logistics The employer or third party enrollment vendor becomes a service provider for Optum Bank. for your accounts however you are Service providers must sign an agreement with Optum Bank in which they agree to: encouraged to contact a tax advisor for 1) Obtain employees acceptance of an Authorized Agent Agreement questions related to your specific situation. 2) Fulfill all requirements for Electronic Signature compliance. Optum Bank cannot provide tax advice. 3) Maintain safeguards to protect the confidentiality of employee data. Optum www.optumbank.com Page 3 Health Savings Account Small Group Implementation Guide Employer Requirements: During the enrollment process, you must: 1) Display/Distribute the Authorized Agent Agreement to employees 2) Capture the employee’s affirmation to the Authorized Agent Agreement in accordance with the Signature Requirements 3) Agree to Terms and Conditions prior to each enrollment session Employee Requirements: Your employees must: 1) Affirm to open an HSA with Optum Bank by reviewing and agreeing to the Optum Bank Authorized Agent Agreement How to enroll your employees through the employer portal: You will receive an email invitation to register on OptumHealthFinancial.com. After completing the registration, you can enroll employees online. For information on how to register for this tool, please see the Employer Portal Registration Guide. Once logged into the website, you can begin to enroll individuals by selecting the ‘Enroll a Participant’ link under the ‘Participant’ tab. The following information is required for each individual opening an account. Demographic information Health Plan Information • Full Name • High Deductible Health Plan (HDHP) Effective Date • Home street address (cannot be a P.O. box) • Social Security Number • Date of Birth • Email After entering the information in the corresponding prompts, a review screen will appear asking you to continue or enter additional enrollments. Once all applications have been entered, you will be prompted to review and accept the Terms and Conditions for HSA Enrollments. Method 2 Online Enrollment: Online enrollment requires no paperwork and takes just moments for your employees to complete. During your annual benefits enrollment period, direct your employees to www.OptumBank.com and then ask them to follow the directions to open an account. Be sure to provide the link to all new hires throughout the year. This method is most popular with small and mid-size employers. During the application process, account holders can request to receive their welcome kit electronically. They can also request e-delivery of tax forms, annual privacy policy mailing and other communications from Optum Bank (Note: statements are already delivered online unless owners have requested they be mailed). Employee Requirements: In order to open an account, the employee will be required to complete the online application, agree to accept Optum Bank’s terms and conditions and provide an electronic signature (Signature). Optum www.optumbank.com Page 4 Health Savings Account Small Group Implementation Guide Important Note: Employees will need to know what Employer/Group Number to use during the account opening process. Please be sure to provide your HSA Employer/ For answers to common employer Group Number to your