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HSA Funding Considerations:

1. What is the cost savings between the current policy deductible and the HSA policy? Use the HSA
Calculator in the Agent Toolbox to show your client the savings: www.AmericanHealthValue.com

2. Will the employer fund the HSA accounts?
Consider funding the cost savings on the premium.
Matching contributions can be done through a cafeteria plan (FSA).

3. Does the employer currently have a General-Purpose Medical Cafeteria plan (FSA) in place? If so,
please review the implementation considerations below.

If the employer terminates the medical portion of the FSA, they may realize some additional savings
in administration costs and claims processing, which they can pass on to the employees as
contributions to the HSA.*


Cafeteria Plan (FSA) Implementation Considerations:

1. Does the group have a POP (Premium Only Plan)? ___ YES ___NO

If yes, the plan may need to be amended to allow for pre-tax employee HSA
contributions.*

2. Does the group offer a General Purpose Medical FSA? ___ YES ___NO

If yes, the plan must be terminated or amended to a Limited Purpose or Post-Deductible
FSA. If amended, include the ability for employees to make pre-tax contributions.*

See the next page for additional guidance on moving an employee from a General
Purpose Medical FSA to an HSA.

3. What is the FSA plan year? ______________________

4. What is the insurance plan year? _________________

5. When does the grace period end for additional claims incurred after the end of
the plan year? _______________


*Any changes to the FSA must be coordinated through the FSA Plan Administrator.

File: Flyer-FSA-HSA-Transition Revised 05-03-12



Transition of Employee from a General Purpose Medical FSA to an HSA:

In order for an employee who is enrolled in a General Purpose Medical FSA to be eligible to participate in
an HSA, the following must occur:

If the health insurance plan year is different from the FSA plan year:

The employee cannot receive HSA contributions until the FSA plan year has ended (even if their
account balance is currently at zero).

At FSA plan year-end the employee must have a zero balance in the FSA. If there is still a balance,
they are not eligible to receive HSA contributions until the end of the FSA grace period.


If the health insurance plan year is the same as the FSA plan year:

If the employee has a zero balance at the end of the FSA plan year, they can immediately begin to
receive deposits into their HSA.

If there is still a balance at the end of the FSA plan year, they are not eligible to receive HSA deposits
until the end of the FSA grace period.




File: Flyer-FSA-HSA-Transition Revised 09-25-13



info@AmericanHealthValue.com
800-914-3248