Benefits Handbook

In general, you may withdraw from your Health Savings Account for qualified medical expenses on a tax-free basis for yourself as the employee covered by a high deductible health plan, your spouse (even if he or she is not covered by a high deductible health plan), and your qualifying family members (even if not covered by a high deductible health plan).

Withdrawals for services and items other than qualified medical expenses are subject to federal, state, and local taxes, as applicable, and an additional 20% penalty unless the withdrawal occurs after you reach age 65, are disabled or die.

For guidelines on qualified medical expenses under Internal Revenue Code Section 213, see IRS Publication 502. However, some items listed in this publication are not reimbursable under the Health Savings Account (e.g. premiums, except for COBRA premiums, Medicare premiums, health premiums while you are receiving unemployment insurance, retiree medical plan premiums other than for Medigap insurance and certain long term care insurance premium amount). For Health Savings Account specific requirements under IRC Section 223, see IRS Publication 969. IRS publications are available at www.irs.gov or by calling the IRS at +1 800 829 3676. You may also check with the Health Savings Account Administrator if you have questions about reimbursable expenses.

According to the IRS, a qualifying family member includes any person who qualifies for tax-free health plan benefits, including any of the following individuals:

You can make withdrawals for eligible expenses for you, your spouse or your qualifying family members.

Unless your domestic partner and his or her children qualify for tax-free health plan benefits (as described above), the federal government does not permit you to use your Health Savings Account for eligible expenses incurred by your domestic partner or his or her children.

No. Under the Affordable Care Act eligibility rules, health plans must cover adult dependents until they reach age 26, but the tax law did not change. If you have an eligible family member who is not a dependent for tax purposes, you will pay a 20% penalty plus taxes if you use the before-tax dollars from your Health Savings Account to pay for health care expenses for that family member.

Contact the Health Savings Account Administrator if you have questions about tax dependents and the rules that apply to your Health Savings Account. Please consult your personal tax advisor for specific advice regarding your personal circumstances.

No. You pay for qualified expenses using your Prepaid MasterCard® Card, by requesting a distribution from your account online at the Spending Account Service Center or by using the Spending Account Service Center's mobile app via the Spending Account Mobile Center.

Although you do not file a claim when using the Prepaid MasterCard®, the Spending Account Service Center or the Spending Account Mobile Center, be sure to keep records (for example, receipts) so that you can prove to the Internal Revenue Service that the withdrawals are for qualified medical expenses that were not otherwise reimbursed.

The Prepaid MasterCard® is a special-purpose MasterCard® that gives you a way to pay for eligible expenses. The Prepaid MasterCard® lets you electronically access the amounts you have contributed to your Health Savings Account wherever MasterCard® is accepted.

The Spending Account Service Center will provide two (2) Prepaid MasterCards®. Additional or replacement cards are available for a $10.00 fee (come in packages of 2 cards) charged directly to your account. If you participate in more than one account, the fee would be charged first to your Limited Purpose Health Care Flexible Spending Account, then your Dependent Care Flexible Spending Account before being charged to your Health Savings Account.

You can use the Prepaid MasterCard® at point of service to pay for eligible expenses without needing to submit requests for payment. When you use the Prepaid MasterCard®, the funds are automatically deducted from your Health Savings Account for payment. Using the Prepaid MasterCard® reduces out-of-pocket payments and paperwork, as well as the need to wait for distributions.

Alternatively, you can request a distribution from your account online at the Spending Account Service Center or by using the mobile app at Spending Account Mobile Center for your Android or iPhone (also compatible with iPad® and iPod touch®).

Be sure to keep records (for example, receipts) so that you can prove to the IRS that the withdrawals are for qualified medical expenses that were not otherwise reimbursed.

If you forgot your Prepaid MasterCard®, pay for your qualified medical expenses out-of-pocket and request a distribution from your account online at the Spending Account Service Center or by using the mobile app at Spending Account Mobile Center for your Android or iPhone (also compatible with iPad® and iPod touch®).

Be sure to keep records (for example, receipts) so that you can prove to the IRS that the withdrawals are for qualified medical expenses that were not otherwise reimbursed.

Yes, you can request a distribution, for qualified medical expenses that have already been incurred from your account online at the Spending Account Service Center or by using the mobile app at Spending Account Mobile Center for your Android or iPhone (also compatible with iPad® and iPod touch®). When you request the distribution, you may opt to have your distribution paid to "Someone Else" and submit your providers name, address, the patient's full name and your account number at the provider's office during the transaction. The HSA Distribution process will send a check from your Health Savings Account directly to your provider's office to pay for your eligible item or service.

You can make a purchase or a withdrawal up to the amount you have in your account. If your expenses exceed your account balance, your Prepaid MasterCard® purchase will be denied. You may make another purchase or withdrawal when there is enough in your account to pay it.

Once your medical claim has been processed through the insurance company, the doctor's office will send you a bill requesting payment for the difference between the billed charges and the amount covered by the medical plan. Write your Prepaid MasterCard® number on the doctor's bill and submit for payment, or pay for the eligible expense out-of-pocket and request a distribution from your account online at the Spending Account Service Center or by using the mobile app at Spending Account Mobile Center for your Android or iPhone (also compatible with iPad® and iPod touch®).

Yes, you can request a distribution, for qualified medical expenses that have already been incurred from your account online at the Spending Account Service Center or by using the mobile app at Spending Account Mobile Center for your Android or iPhone (also compatible with iPad® and iPod touch®). You cannot get cash with the Prepaid MasterCard® IRS rules say that expenses are incurred only after the service or item has been provided, not when you are actually billed or pay for the service.

Be sure to keep records (for example, receipts) so that you can prove to the IRS that the withdrawals are for qualified medical expenses that were not otherwise reimbursed.

The Prepaid MasterCard® works like a debit card, with your account balance(s) stored on it. When you use the Prepaid MasterCard®, the amount of the eligible purchases will be automatically deducted from the applicable account and payment will be electronically transferred to the provider/merchant. Your Prepaid MasterCard® is actually a prepaid card. Since there is no "prepaid" selection available, you should select, "credit." You do not need a PIN and cannot get cash with the Prepaid MasterCard®.

Please be aware that your contributions to the Health Savings Account are funded to the Prepaid MasterCard® as they are deducted from your pay, so it is important to be aware of your account balance in order to avoid card declines at the point of service.

The Prepaid MasterCard® has a priority list embedded in it. That means if you have both the Limited Purpose Health Care Flexible Spending Account and a Health Savings Account, funds first will be applied from your Limited Purpose Health Care Flexible Spending Account balance for dental and vision expenses before any dental or vision expenses are applied from your Health Savings Account, as long as you are using your card at a qualifying provider.

The Prepaid MasterCard® cannot be used to pay for preventive care or post-deductible qualified medical expenses, so any preventive care and post-deductible qualified medical expenses will be withdrawn from your Health Savings Account. If you prefer to use your Limited Purpose Health Care Flexible Spending Account to pay for preventive care and post-deductible qualified medical expenses, you will have to pay for those eligible expenses out-of-pocket and submit a claim for reimbursement.

As examples:

If you participate in the Limited Purpose Health Care Flexible Spending Account and Health Savings Account and use your Prepaid MasterCard® to purchase contact solution at a merchant that is a qualifying vision provider, the cost of the contact solution will be deducted from your Limited Purpose Health Care Flexible Spending Account balance because the Prepaid MasterCard® prioritizes the Limited Purpose Health Care Flexible Spending Account for dental and vision expenses.

If instead you use your Prepaid MasterCard® to purchase contact solution at a merchant that is not a qualifying vision provider, the cost of your contact solution will be withdrawn from your Health Savings Account because the Prepaid MasterCard® can only be used for the Limited Purpose Health Care Flexible Spending Account at qualifying providers.

Please see the Limited Purpose Health Care Flexible Spending Account section of the Benefits Handbook for more information about the Limited Purpose Health Care Flexible Spending Account.

Yes, there are standard banking fees associated with the Prepaid MasterCard®, such as non-sufficient funds, stop payment, overdraft, etc. The applicable fees are deducted automatically from your Health Savings Account. Contact the Spending Account Service Center for more information about applicable fees and related costs.

No. As long as you have the amount available in your cash account, there is no withdrawal limit for payment to provider for qualified medical expenses using your Prepaid MasterCard®.

Withdrawals for services and items other than qualified medical expenses are subject to federal, state, and local taxes, as applicable, and an additional 20% penalty unless the withdrawal occurs after you reach age 65, are disabled or die.

No. You cannot make tax-free withdrawals from the Health Savings Account for expenses incurred before your account was established. Accounts are established on the first of the month coincident with or following your enrollment as long as you are actively employed.

Yes. Amounts contributed to the Health Savings Account belong to you. Although you cannot contribute to the Health Savings Account unless you participate in the Marsh & McLennan Companies $1,600 Deductible Plan or $3,200 Deductible Plan, you may make withdrawals at any time.

Yes, but only if he or she is your tax dependent. Purchases or withdrawals for a domestic partner or his or her children who are not your tax dependents are considered a non-qualified medical expense and subject to federal, state, and local taxes as applicable and in some cases a 20% penalty.

Any balance in your account at calendar year end will remain in your account, even if you do not participate in the Marsh & McLennan Companies $1,600 Deductible Plan or $3,200 Deductible Plan in the following year. Amounts contributed to the Health Savings Account belong to you and are completely portable. Although you cannot roll the Health Savings Account funds over into an IRA, you can roll the Health Savings Account funds into another Health Savings Account.