2-Minute Tuesdays
Employer Resource Guide
MINUTE
TUESDAYS
Open enrollment can be a challenging time for employees
and HR/benefits staff. Our 2-Minute Tuesdays email campaign
can make it easier.
Over the next couple months, we’ll send you a series of 6
emails—4 of them containing links to emails you can easily
send out to employees. Sound complicated? Don’t worry.
We’ve made it easy.
Here’s What to Expect.
WEEK #1 EMAIL
Next week, you’ll receive the week #1 email, which includes an easy-to-use download
of an email for your employees. Simply click on the link to download it. You’ll also see
instructions for how to send it.
This email focuses on open enrollment and includes links to a
helpful health savings account, flexible spending account and
health reimbursement arrangement (HSA/FSA/HRA) Comparison
Grid. It also includes a link to healthsavingscheckup.com, a great
source for figuring out how much each person might need to
save for medical expenses during retirement.
WEEK #2 EMAIL
This week’s email illustrates the importance of saving for health-related expenses.
We’ll include links to three hypothetical stories:
• See Steve Save (HSA)
• Pete Combines Health Accounts (HSA and FSA)
• Julie Pays for Medical Expenses with Her HRA (HRA)
Steve saves for health care.
Julie’s HRA helps pay for health expenses
It’s a smart way to help her family
account.
and
Steve has one child. He
chooses
his wife both work. He
HSA
family coverage with an
for
to help him save and pay
qualified health care expenses,
today and into the future.
thrive.
Pete saves more with two health accounts.
Julie is married with two kids
under the age of 13. She is
careful with her budget and
tries to make the most of her
health care dollars.
Using a limited purpose Flexible Spending Account
Pete wears contacts.
Now he needs
new eyeglasses
and dental surgery.
tax deductible.
are easy to make and
Optum
Steve’s HSA deposits
savings account (HSA) at
contributions to his health
Steve plans to make biweekly
for 2013 is $3,250 for individual
maximum allowable amount
to $3,300 for
BankSM, Member FDIC. The
these amounts increase
family coverage. In 2014,
coverage, and $6,450 for
$6,550 for family coverage.
individual coverage and
Annual total
(26 contributions)
Biweekly
amount
HSA contributions
Income tax savings
25% federal | 5% state
Steve saves for the future.
tax-free
Each year, Steve may earn
And, when
interest on his HSA balance.
money to reach
his account has enough
Steve can invest
the investment threshold,
mutual funds for
some of his savings into
2
potential.
greater long-term growth
Pete’s health accounts work together.
Pete has an HSA that he uses to plan, save and pay for current and future qualified
health care expenses. His employer also offers a limited purpose FSA. Although HSA
funds can be used as well, Pete decides to contribute to a limited purpose FSA to
cover eligible dental and vision expenses for the year. This allows him to preserve his
HSA dollars for future or unforeseen medical expenses.
grows.
remaining
Steve’s account balance
expenses, he has $3,448
in qualified health care
account
After Steve pays $3,000
keeps this money in his
$6,448 contribution. He
in his HSA from his annual
this can really add up.
for the future. Over time,
1
Calculations assume an
$3,448
$17,240
1 Year
5 Years
annual net savings of $3,448
every year.
$51,720
15 Years
She uses her HRA to pay for eligible
Pete reviews the list of eligible expenses and determines what he needs to contribute
to his limited purpose FSA to cover his family’s vision and dental needs. Pete’s annual
election is deducted before taxes and may be withdrawn throughout the plan year. His
full election amount is available for reimbursement at the start of the plan year.
to learn
Visit optumbank.com
taxes
more about saving on
with an HSA.
Pete can save an additional $941 in taxes.
Pete estimates that new eyeglasses and dental work will cost about $2,500. He
decides to have this amount deducted from his paycheck over the year, before taxes.
With a $2,500 election to his limited purpose FSA, his tax savings add up. Even if he
leaves a few dollars in his account at the end of the year, he may save more in taxes.
Saved
$625
Federal tax
at 25%
Saved
$191
Payroll tax
at 7.65%
Saved
$125
Total
savings $941
State tax
at 5%
Hypothetical example is for illustration purposes only. Costs, circumstances and tax rates may vary.
expenses.
Julie reimburses herself for eligible
medical expenses including office
visits,
prescription drugs and eligible alternative
health care such as chiropractic services.
Julie checks her plan document frequently
to see what expenses are covered
by her HRA.
What is the advantage of having a limited-purpose FSA?
By limiting FSA reimbursements to dental and vision care expenses, you (or your
eligible dependents) can participate in both a limited purpose FSA and a health
savings account (HSA). Participating in both plans allows you to maximize your
savings and tax benefits.
$1,924
$74
Julie’s company helps her pay for
medical care with a health reimbursement
account (HRA).1
Her employer commits $500 to each
employee’s HRA for the plan year. Julie
cannot
deposit any money into her HRA,
and nothing is withheld from her
pay. It is a
benefit provided by her employer.
A limited purpose flexible spending account (FSA) is like a general purpose health
FSA, except that eligible expenses are limited to dental and vision.
$6,448
$248
tax free to pay for qualified
from his HSA income
He withdraws money
care
medical expenses.
his family’s qualified health
from his HSA to pay for
to
Steve withdraws $3,000
care, prescriptions, visits
include trips to urgent
expenses this year. Expenses
dental care.
medical specialists, and
Steve’s HSA
1
net savings
Choose the email that works for you, based on which
product you’re offering to employees.
with a health savings
And he saves on taxes
Sometimes unused HRA funds
carry over from year to year.
Last year Julie only used $350 from
her HRA. And her employer’s plan
let her carry
$150 over to this year. Some HRA
plans do not have this option.
Using the account is easy.
Pete can pay with cash, a
personal check or credit card,
and then submit a paper
claim or a claim online at
optumhealthfinancial.com.
Pete can also ask Optum to
deposit reimbursements for
claims directly into his savings
or checking account.
Julie saves her receipts.
Julie may need to show that she is
using her HRA dollars on eligible
health care
expenses. So she saves receipts that
show the:
• service or item purchased
• date
• amount paid
• name of the provider
The Optum Payment Card makes
paying expenses easy for Julie because:
• She can use it at doctors’ offices,
clinics, hospitals or pharmacies
that accept MasterCard.®
™
• She doesn’t have to file claims by
paper or online.
• And she doesn’t have to wait for
reimbursements.
Julie saves itemized receipts every
time she uses her card in case she
needs to prove she was paying for
eligible expenses.
That way she’s ready to answer questions—and
she is tracking how much she
spends on health care to help her
plan next year.
Julie saves even more on health
care with a flexible spending account
(FSA).
Julie can also save by contributing
a portion of her pre-tax income to
a health care
flexible spending account (FSA). Planning
wisely, Julie contributes to the FSA
to pay
for any eligible health care expenses
that her HRA won’t cover. Julie’s contributions
are not included in her gross pay, so
no employment or income taxes are
deducted
from the contribution.
Start saving like Julie.
Sign up for an HRA plan
during benefits enrollment.
WEEK #3 EMAIL
Our research into The 5 Stages of Health Saving and Spending identifies DECIDE as
the first stage. This week’s email addresses employees’ initial question: Is an HSA, FSA
or HRA is right for me? Choose the email that works for you, based on which product
you’re offering to employees. Links include:
• 2-minute video: What Is an HSA?
• FSA Enrollment brochure
• Health Reimbursement Arrangement brochure
Steve saves for health care.
with a health savings
And he saves on taxes
account.
and
Steve has one child. He
chooses
his wife both work. He
HSA
family coverage with an
for
to help him save and pay
qualified health care expenses,
today and into the future.
tax deductible.
are easy to make and
Optum
Steve’s HSA deposits
savings account (HSA) at
contributions to his health
Steve plans to make biweekly
for 2013 is $3,250 for individual
maximum allowable amount
to $3,300 for
BankSM, Member FDIC. The
these amounts increase
family coverage. In 2014,
coverage, and $6,450 for
$6,550 for family coverage.
individual coverage and
Annual total
(26 contributions)
Biweekly
amount
HSA contributions
Income tax savings
25% federal | 5% state
Health Reimbursement Accounts
Keep your family and finances healthy.
Steve saves for the future.
tax-free
Each year, Steve may earn
And, when
interest on his HSA balance.
money to reach
his account has enough
Steve can invest
the investment threshold,
mutual funds for
some of his savings into
2
potential.
greater long-term growth
$6,448
$248
$1,924
$74
tax free to pay for qualified
from his HSA income
He withdraws money
care
medical expenses.
his family’s qualified health
from his HSA to pay for
to
Steve withdraws $3,000
care, prescriptions, visits
include trips to urgent
expenses this year. Expenses
dental care.
medical specialists, and
grows.
remaining
Steve’s account balance
expenses, he has $3,448
in qualified health care
account
After Steve pays $3,000
keeps this money in his
$6,448 contribution. He
in his HSA from his annual
this can really add up.
for the future. Over time,
Steve’s HSA
1
net savings
1
Calculations assume an
$3,448
$17,240
1 Year
5 Years
annual net savings of $3,448
$51,720
15 Years
to learn
Visit optumbank.com
taxes
more about saving on
with an HSA.
every year.
WEEK #4 EMAIL
The 5 Stages of Health Saving and Spending identifies USE as the second stage.
That’s when employees have opened an account but haven’t put it to work yet.
This week’s email encourages them to start funding and using their account.
Choose the email that works for you, based on which
product you’re offering to employees. Links include:
Common FSA eligible/ineligible
expenses
This document can be
used to help you determine
which expenses may be
reimbursement under your
eligible for
health or dependent care
flexible spending account
(FSA).
Please note: the following
lists are not all-inclusive.
The Internal Revenue Service
decides which expenses
(IRS)
can be paid from an FSA
and they can modify the
time. Be sure to review
list at any
your benefit plan documents
to learn what expenses
for reimbursement under
are eligible
your specific plan.
If you are currently participating
in a high-deductible health
contributing to an HSA,
plan (HDHP) and are
you may also participate
in a Limited Purpose
Expenses are limited to
Health FSA.
dental and vision expenses
identified with an * in
the list below.
Common eligible health
care expenses
• Acupuncture
• Ambulance
• Artificial limbs
• 2-minute video: Paying with an HSA
• 2-minute video: Making Deposits into Your HSA
• FSA Eligible/Ineligible Expense List
• Artificial teeth*
• Birth control treatment
• Blood sugar test kits
for diabetics
• Breast pumps and lactation
supplies
• Chiropractor
• Contact lenses and
solutions*
• Crutches
• Dental treatments including
X-rays,
cleanings, fillings, sealants,
braces and
tooth removals*
• Doctor’s office visits
and co-pays
• Drug addiction treatment
• Drug prescriptions
• Eyeglasses (Rx and reading)*
• Fluoride treatments*
• Flu shots
• Guide dogs
• Hearing aids and batteries
• Infertility treatment
• Inpatient alcoholism
treatment
• Insulin
• Laboratory fees
• Laser eye surgery*
• Medical alert bracelet
• Medical records charges
• Midwife
Managing your FSA
is simple
With a Health Advantage
FSA
from Optum, it’s easy to
manage
your account. Simply register
at
optumhealthfinancial.com
to:
• Sign up to receive email
notifications
• Sign up for direct deposit
• Check your account
balance
• Submit claims and receipts
reimbursement
for
• View your recent transactions
With a Health Advantage
FSA from
Optum, you have the tools
and
resources to make the
most of your
health care dollars.
• Occlusal guards to prevent
teeth
grinding
• Orthodontics*
• Orthotic Inserts (custom
or off the
shelf)
• Over-the-counter medicines
and
drugs, if prescribed by
a doctor (see
more information below)
• Physical therapy
• Special education services
for learning
disabilities (recommended
by a doctor)
• Speech therapy
• Stop-smoking programs
(including
nicotine gum or patches,
if prescribed)
• Surgery, excluding cosmetic
surgery
• Vaccines
• Vasectomy
• Vision exam*
• Walker, cane
• Wheelchair
WEEK #5 EMAIL
Congratulations! When you receive this email you’ll have completed the
2-Minute Tuesday program and delivered all four emails to your employees.
T 866.427.6845 | www.optum.com
6300 Olson Memorial Highway, Golden Valley, MN 55427
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Because we are continuously improving our products and services, Optum reserves the right to change specifications without prior notice. Optum is an equal
opportunity employer.
41397-082014 © 2014 Optum, Inc. All Rights Reserved.