FAQ: Chandler Unified School DistrictHealth Savings Account plans
What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) is an innovative medical option that gives you more control over how, when, and where you get medical care and how much you spend on it. Paired with required enrollment in a High Deductible Health Plan (HDHP), an HSA is designed to encourage you to set money aside for your healthcare expenses; financially motivate you to spend your healthcare dollars wisely; and give you a way to pay for certain healthcare expenses—like acupuncture, visits to a chiropractor, fertility treatments, therapy, and eye care–your current medical plan might not cover. It provides a tax-free way to help you build savings for future medical expenses.
How does a Health Savings Account (HSA) work?
An HSA works like a tax-exempt IRA, except that the money is used to pay for your share of current and future healthcare costs in conjunction with your high deductible medical plan. Also, like an IRA, your HSA funds can earn interest, making your fund grow. Each month you and your employer deposit money on a tax-free basis, up to an IRS-determined annual cap.
What is a High Deductible Health Plan (HDHP)?
A High Deductible Health Plan (HDHP) is a health insurance plan with lower premiums and higher deductibles than a traditional health plan. Chandler Unified School District offers two HDHPs, the HDHP1500 and the HDHP2700. The HDHP1500 has an individual $1500, $3000 family deductible. The HDHP2700 has an individual deductible of $2700 and a family deductible of $5400.
How does my High Deductible Health Plan (HDHP) Work?
Except for in-network preventive care, which is typically covered at 100%, you must meet an annual deductible before your insurance carrier covers your eligible medical expenses at an 80/20 coinsurancebenefit. You can use your HSA money to reimburse yourself for expenses that go toward meeting the deductible. Depending on the amount of money you put into your HSA—and if you use your HSA money wisely— you may not have to dip into your own after-tax funds. On the other hand, if you use up your HSA balance, your remaining deductible obligation comes out of your pocket.
What happens when I meet the deductible?
Once you meet your annual deductible, the High Deductible Health Plan pays 80% of your eligible in-network expenses. You pay the remaining 20% up to the out-of-pocket maximum. Once you reach your out-of-pocketmaximumyour remaining eligible expenses are paid at 100%. Eligible out-of-network expenses are reimbursed at a lower level- 60% of the reasonable and customary charge- with higher deductibles and out-of-pocket expenses.
What is the difference between an annual deductible and annual out-of-pocket maximum?
You must meet the plan year deductible before the plan pays most benefits. The out-of-pocket maximum is the most you will pay for eligible expenses, including prescription drugs, during the plan year. After reaching the maximum, the plan pays 100% for eligible expenses.
What procedures are considered preventative and covered at 100%?
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Under the HSA plans, will yearly “wellness” doctor visits be covered?
Yes. Wellness visits are covered at 100% and are not subject to the annual deductible.
If I choose an HSA, will I still be using UnitedHealthcare network?
The High Deductible Health Plans will use a UnitedHealthcare network of providers. You can choose which provider(s) you want to see whenever you need treatment.
When I see an in-network UnitedHealthcare doctor, will his fees continue to be discounted and, if so, do I just pay the contracted fee?
Yes. You will pay the discounted or contractual fees.
Is the doctor’s office charge taken from the HSA a co-pay amount, or the full office charge visit? There are no office visit co-pays under the HSA plans. When seeing an in-network provider, you will pay a discounted amount at the time of your visit, or your provider will bill you. Note: most UnitedHealthcare network providers accept the HSA debit card, which you can use to pay for your visit. The amount you pay for the visit will count toward satisfying your annual deductible.
Does the HSA cover maternity expenses?
Yes. After you satisfy the annual deductible, the plan pays 80% for most eligible expenses in-network; you pay the balance until you reach the out-of-pocket maximum. At that point, the plan pays 100% for eligible expenses.
How are colonoscopies covered?
One Colonoscopy a year is covered in full as a preventative procedure.
How are medical claims processed?
Individuals pay the full contracted rate for services and prescriptions that they receive up until they reach the annual deductible. When you go to the doctor you will not pay a co-pay. Most facilities will send the claim to the insurance first then bill you. Some do require an estimated partial payment be made up front.
How are pharmacy claims processed?
The pharmacy has the ability to run the prescription claim through immediately. You will pay the full contracted rate for the prescription at the time of receipt.
If I choose the HDHP2700 Plan, (with the $2700 deductible), can I pay my normal dental expenses with my HSA?
Yes you may pay for services. However, if you purchase a dental plan outside of the District dental plan, you cannot expense the premiums.
Can I enroll in one of CUSD’s HDHP plan if I have secondary coverage through a spouse?
Yes you may enroll in a HDHP plan, however, in order to be eligible for the Health Savings portion of the plan you cannot be covered by another "traditional" (i.e. non-high deductible) health plan.
I understand the cost of the CUSD HSA plans are considerably less than the Traditional Plan. What does the district do with the savings?
The difference between the cost of the HDHP plans and what the school district contributes to the Traditional Plan is contributed to the HSA accounts of the HSA participants.
How and when are the employee and employer contribution made?
The employer contributions will be made in two lump sum payments. The first deposit will be made August 22, 2013 and the second deposit will be made January 23, 2014.Employee deductions are spread equally over 22 pays.
Does my personal contribution show on my check stub?
Yes. It is shown under the “Deductions” section.
How can I find out how much is in my account?
Log on to or call OptumHealth Bank at (800) 791-9361.
What types of expenses can I use my HSA funds for?
Withdrawals for healthcare expenses (including medical, dental, vision, and any other IRS-qualified healthcare expense not covered by your High Deductible Health Plan) are tax free. IRS Publication 502 lists all qualified healthcare expenses. Check it out – you might be surprised that items like over-the-counter drugs, contact lens solution, prescription sunglasses and Long Term Care insurance premiums qualify for these tax advantages.
Can we use the HSA money for elective surgery, i.e., plastic/cosmetic surgery or cosmetic dental?
No. Distribution from an HSA account must be for qualified medical expenses, as defined by the IRS. Cosmetic surgery is not considered a "qualified" medical expense.
What are the benefits of the Health Savings Account plan?
The key to making a High Deductible Health Plan work for you is your commitment to systematically contribute to your HSA. If you fund your HSA consistently and then use the dollars in your account wisely, you build a tax-free reserve to pay for your healthcare expenses, possibly pay less out of your pocket for the care you receive, and maintain more control over your healthcare decisions.
What if I do not use the money by the end of the calendar year?
If you do not use all of the money in your HSA by the end of a calendar year, the balance rolls over to the next year. There is no limit to the amount you can roll over from year to year. Unused monies roll over indefinitely. You have total control over your HSA dollars. You decide if you want to reimburse your healthcare expenses through your HSA or keep the money invested in your HSA to cover your Medicare or other retiree health premiums tax-free (except Medigap) after you turn 65. You own your HSA account. If you retire or resign from CUSD, your money is not forfeited.
Do I pay taxes on the employer contribution?
Your HSA contributions are tax-deductible (and any District contributions are excluded from your taxable income), so are the investment gains on your account balance.
Do I earn interest on my HSA funds? What choices of investments do I have for my funds?
The plan offers you a number of investment options when you elect to participate. Contact OptumHealth Bank for further information.
What is the maximum balance you can have in the HSA account?
There is no maximum HSA account balance; you can accumulate funds in the account over time. With that said, the IRS DOES limit the amount that can be contributed each year.
Can I roll over funds from my HSA to an IRA?
No. You can roll over funds from one Health Savings Account to another, but not to an IRA.
What if I incur a significant medical expense early in the year and do not have enough money in my HSA to cover the cost?
Once the funds are in your account you can reimburse yourself. There are many different options for reimbursement; withdraw the money from an ATM, log on to and request a check be sent to you, make a non-qualifying purchase in the amount that is owed to you (make sure to save receipts). Hospitals and physicians’ offices will often give you a discount if you are paying “in cash” Most facilities offer payment plans as well.
My doctor does not accept a credit card. How do I get reimbursed?
You can withdraw funds at an ATM or you can log on to to request a check to be sent directly to you. You could also request a check to be sent directly to the physician.
I plan to retire in 3-4 years. How will the HSA work to my advantage?
Even though you will not have time to accumulate significant funds in your HSA, the plan's "catch-up" provisions will assist in building your account balance prior to your retirement. If you are age 55 or over, the IRS allows you to contribute an additional $1000 to your account (for 2013). Once you retire, you can use your HSA account for un-reimbursed medical expenses during your retirement.
Can I contribute to a medical flex spending account in addition to an HSA?
Yes. The medical flex account can be used on a “limited purpose” basis to pay your eligible dental and vision care expenses only, for both you and your dependents covered on under your HSA plan.
Can I use my flexible spending account for my dependents not covered under my HSA plan?
Yes, however you flexible spending account may only be used for dental and vision expenses.
I participate in the Medical Expense Reimbursement flexible spending account. Does money in that account roll over from year to year?
No. The IRS does not allow FSA contributions to roll over from year to year. You must use those funds during the plan year - unused funds are forfeited.