Health Savings Accounts: Blue Health Fund

Is your company looking for new ways to manage benefits costs? Would you like to help your employees build tax-free funds for their future medical and retirement expenses? If so, Blue Heath FundSM might be the right employee benefits plan for your company.

Blue Health Fund combines a high deductible health plan (HDHP) with a separate savings account, called a health savings account (HSA). The HDHP provides comprehensive coverage for unexpected or large expenses. The HSA lets your employees set aside tax-deductible, interest-earning funds to help offset their deductible and other qualified medical expenses. First, members must meet the health plan deductible. Then, the plan starts paying for their covered medical expenses according to pre-determined coinsurance percentages.

The employee owns the HSA, and it is completely portable. They can roll over any funds left in the HSA at the end of the benefits period and save them for future medical expenses.

Members can make withdrawals from the account tax-free if they use them for qualified medical expenses. As the account holder, the member is responsible for deciding how the funds are used and for meeting all IRS requirements. A Blue Health Fund plan can also reduce your administrative obligations. Neither the plan nor plan sponsor is required to substantiate claims or verify expenses.

Your employees are eligible for an HSA if:

  • They have qualified HDHP coverage.
  • They are not enrolled in Medicare.
  • They do not have other non-HDHP coverage, such as through a spouse's plan.*
  • Someone else is not claiming them as a dependent on his or her tax return.

* Exceptions apply for certain types of limited insurance and supplemental coverage.

How do you take advantage of Blue Health Fund? First, offer a Blue Health Fund benefits plan. Employees who enroll in the plan can then open an HSA with a qualified bank or financial institution. They can use a bank of their choice or let BlueCross' trustee administer their HSAs. As long as they keep the eligibility requirements listed, they can deposit funds into the HSA. The IRS sets a maximum annual limit members can contribute. Your company or the member's family and friends can also make contributions to the HSA on the member's behalf.

Does HSA Bank administer your employees' HSAs? If so, members can manage their HSAs and pay claims online with My Health Toolkit®. HSA Bank is an independent company that administers some HSAs on behalf of BlueCross.

Find out more about Blue Health Fund or HSAs. Please contact your benefits consultant or BlueCross marketing representative today!