Helpful hints for using your HSA

Managing pharmacy costs 

Unexpected costs can be tough to swallow. But we’ll help you be better prepared. Let’s look at how pharmacy costs are handled:

If you have a prescription drug benefit through Aetna, you’ll be paying Aetna’s negotiated rate — which is usually less than a retail pharmacy’s full rate. And every eligible expense counts toward your deductible. So you’ll meet your deductible sooner. After you do, you’ll pay for prescriptions based on your plan of benefits. This means you could be paying an even lower rate.

Insider’s Tip! 

Did you know that your deductible may be waived for certain preventive drugs? It’s true. This means you might be able to pay an even lower amount (based on your plan) for drugs such as Zocor for high cholesterol or Boniva for osteoporosis. Check with your employer to learn more. And you can use an online tool at Aetna’s secure member website to compare costs.

Use your HSA debit card wisely 

Your HSA debit card comes in handy. Sometimes, it may be a little too handy. That’s why you should use your card carefully to avoid additional fees. Here’s an example: If you try to make a purchase without enough money in your account, this purchase will be denied. That’s bad enough — but you’ll also be charged a denial fee. So check your account balance before using the card. It’s easy (and free of charge) with your secure member website. Just activate your debit card first — then log in to your secure member website to check your balance and account activity.

Keeping track of doctor payments 

In most cases, you won’t need to worry about making a payment when you go to see your doctor. Based on their relationship with Aetna, doctors are generally encouraged to wait for us to process your claim before they receive payment. You should also wait for us to process your claim before making any needed payment. That’s because Aetna negotiates a price with its network doctors. So if your doctor is a member of Aetna’s network, the amount he or she charges (and sends to Aetna) may be quite different from the amount Aetna actually agrees to pay. In fact, the amount Aetna pays a doctor is usually much less than what the doctor typically charges. And we pass these savings on to you.

Insider’s Tip! 

You can save money by seeing a doctor within Aetna’s network. Remember that Aetna negotiates prices with doctors in its network. To find an in-network doctor, just visit your secure member website at www.aetna.com and select “find health care.” You can also use your member website to check some of the estimated rates that doctors charge for some common medical procedures.

Check your qualified expenses 

It’s important to use your HSA dollars only for qualified health care expenses — otherwise you could face tax penalties from the IRS. But what’s a qualified expense? It’s easy to find out. You can get a list of approved expenses on Aetna Navigator. Or go to www.irs.gov and check out Publication 502. You should also check the terms of your benefits plan.

Take advantage of tax savings 

An HSA can help you save money on your taxes  (PDF). And here’s how. Start by seeing if your employer offers payroll deduction for your HSA contributions. If so, you could have your contributions automatically deducted from your paycheck. With payroll deduction, your contributions are considered to be pretax — meaning they can help lower your taxable income. After that, there are still more ways to save. Money in your account earns tax-free interest. And money withdrawn from your account to pay for your qualified health care is not taxed. You can also make extra contributions by writing a check for deposit to your HSA. When you file your taxes, you can deduct that extra amount — which saves even more money. Of course, there are IRS limits to how much you contribute to your HSA each year. In 2009, for example, individuals can contribute up to $3,000 to an HSA. If you have family health coverage, that amount is $5,950. And if you are age 55 or older, you can contribute an additional $1,000 as a “catch-up” contribution.

Insider’s Tip! 

Your HSA balance is insured by the Federal Deposit Insurance Corporation (FDIC) — the same as any bank account. But please note that investment options within your HSA are not FDIC insured.

Is preventive care covered? 

That’s a good question. Most plans will pay for all your eligible preventive care — as long as you use in network doctors (preventive care is typically covered at 100% and does not count toward the deductible). Preventive care may include routine physical exams and well-child visits, vaccines and mammograms, quitting tobacco programs and cancer screenings— see your plan benefits documents for more details or contact Member Services.

It’s good to know … 

HSA balances carry over from one year to the next — even if you change jobs or health plans. Once you set up an HSA, it’s all yours!

• You may pay less for prescription drugs by using a mail-order service for maintenance medications — and by using generic drugs (if available).
• If need be, you can still use HSA dollars to pay for nonqualified expenses. But you will pay additional taxes, plus a penalty, on the money you take out.
• With an Aetna plan, you can use our discount programs to save money on eyeglasses, fitness equipment and health club memberships.

Want to learn more? 

To make the most of your benefits, sign up for your secure member website. You can use this website to manage your health and your health benefits. Plus, it’s available whenever and wherever you are — 24 hours a day, 7 days a week. It’s easy to get started. Just go to www.aetna.com. Click on “Register Now” in the “Members: Secure Information” section.

Health benefits and health insurance plans are offered and/or underwritten by Aetna Health Inc., Aetna Health of California Inc., Aetna Health of the Carolinas Inc., Aetna Health Insurance Company of New York, Aetna Health Insurance Company and/or Aetna Life Insurance Company (Aetna).  In Maryland by Aetna Health Inc., 151 Farmington Avenue, Hartford, CT 06156.  Each insurer has sole financial responsibility for their own products.

This material is for information only and is not an offer or invitation to contract. An application must be completed to obtain coverage. Rates and benefits vary by location. Investment services are independently offered through JPMorgan Institutional Investors, Inc., a subsidiary of JPMorgan Chase Bank. Health benefits and health insurance plans contain exclusions and limitations. For Small Group members, investment services are independently offered through HealthEquity, Inc. The HSA Visa debit card is provided by HealthEquity, Inc.  HealthEquity is a registered trademark.  You may receive communications that reflect the HealthEquity name, where appropriate. Information is believed to be accurate as of the production date; however, it is subject to change. For more information about Aetna plans, refer to www.aetna.com.