Blue Options HSASM FAQ
10/3/2007 4:54:30 PM
BCBSNC® Blue Options HSASM (FAQs)
1. Do I have to have a BCBSNC® High Deductible Health Plan (HDHP) to open a Blue Options HSA℠?
Yes...you must have a BCBSNC® HDHP to open a Blue Options HSA℠. If you later disenroll from your BCBSNC® HDHP, you can keep your Blue Options HSA℠, but you can no longer contribute to it.
2. How is a Blue Options HSA℠ different from a savings account?
The funds in a regular savings account do not have the tax advantages of the Blue Options HSA℠. Contributions, earnings and withdrawals for qualified medical expenses under an HSA are not subject to federal income taxes.
3. Are Blue Options HSAs subject to COBRA continuation coverage?
No...Blue Options HSAs are not subject to COBRA continuation coverage, but your BCBSNC® HDHP is. If you leave your employer and elect COBRA for continuing your BCBSNC® HDHP, your Blue Options HSA℠ will remain in your name and you will continue to have access to the funds for qualified medical expenses.
4. How is preventive care covered under the BCBSNC® HDHP?
Preventive services such as routine checkups and mammograms are typically covered at 100% under the BCBSNC® HDHP.
5. How about non-preventive doctor visits?
All non-preventive doctor visits are covered and applicable to the deductible under a BCBSNC® HDHP. If services are provided by physicians participating in BCBSNC's® Blue Options network, all charges will be discounted based on a contractual agreement between BCBSNC® and the provider. You end up paying the discounted amount.
6. Are prescription drugs covered under the BCBSNC® HDHP?
Prescription drugs are covered but are applicable to the deductible. If prescribed by a participating physician and filled at a participating pharmacy, the charges for the medications are discounted. You are responsible for the discounted amount.
7. What is the maximum tax exemption with a Blue Options HSA℠?
The 2007 IRS regulations allow for $2650 for an individual plan and $5250 for a family plan.
8. If I change jobs, can I take my Blue Options HSA℠ with me?
Yes...the Blue Options HSA℠ is your account and is portable regardless of the number of job changes.
9. Can I use my Blue Options HSA℠ funds for anything?
No...the funds in your Blue Options HSA℠ can only be used for "qualified medical expenses" as defined by the IRS. All other distributions are subject to taxes and penalties.
