Members / Plan Choices and Features / Horizon MyWay HSA / How it Works

How it Works

HSAs were established by the Medicare Modernization Act of 2003 with an effective date of January 1, 2004. HSAs are available to individuals with a qualified, high-deductible health insurance plan. The health insurance plan is paired with a savings account to cover eligible medical expenses not covered by the health insurance plan.

~ How do you use your HSA funds?

HSA funds can be used for any of the following:

• Save for future medical expenses.
• Help bridge the gap to benefits until they meet the annual health plan deductible.

HSA funds are portable, which means that you can access your account regardless of a change of employer, age, marital-status changes, future medical coverage, or state of residence. HSA funds roll over from year to year.

~ Who funds the HSA?

Both you and your employer can contribute to an HSA. Contributions to HSAs are 100 percent tax deductible. Although HSA contributions must stop when you enroll in Medicare, you can continue to access your HSA balances. Annually, your HSA can be funded up to the lower amount of the deductible or the maximum specified by law.

~ HSA Investment Option

Each HSA is held in an interest bearing account. Once the account reaches a balance determined by our financial institution, there is the option to invest the dollars in a variety of mutual funds.

~ Accessing HSA Funds

There are two convenient ways in which you can access HSA dollars:

• A Horizon MyWay VISA/Debit Card
• Checks

You can access your account information via the phone and the Web.

~ How to Enroll in Horizon MyWay HSA

Included in the ACS/Mellon Member Welcome Kit. ACS/Mellon Bank will manage your Health Savings Account. When you complete these forms, ACS/Mellon will be able to open an HSA on your behalf. These forms include:

• Master Signature Card
• Beneficiary Designation Form

~ Horizon BCBSNJ Welcome Information

After enrollment, you will receive welcome information from both Horizon BCBSNJ and others which may include the following:

• Horizon BCBSNJ ID card
• Horizon MyWay HSA Member Handbook

~ ACS/Mellon Welcome Kit

The ACS/Mellon Welcome Kit will include the following materials:

• Welcome Letter
• Master Signature Card/Beneficiary Designation Form
• Privacy Policy Statement
• Deposit Agreement
• Supplemental Agreement
• Fee Sheet
• Return Envelope

Be sure to return your Master Signature Card ASAP. Once we receive the Master Signature Card, you will receive the following:

• Horizon MyWay Visa/Debit Card
• Mellon Checkbook

~ Eligible vs. Noneligible

If you are covered by a qualified, high-deductible health plan, you are eligible to open a Horizon MyWay HSA.

If you are covered under another nonqualified, high-deductible health plan, you are not eligible. For example: If you are covered by your spouse's plan that is not a qualified, high-deductible health plan, you are not eligible, even if your spouse's group has its own qualified, high-deductible health plan.

Specified disease coverage, hospital indemnity, vision, dental, accident, and disability do not count as other coverage.

If you can be claimed as a dependent on another person's tax return, you are not eligible.

If you are enrolled in Medicare, you are not eligible to contribute to an HSA. You can, however, still use accumulated funds.