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Spending accountsFor large businesses

With tax advantages for both you and your employees, BlueSaver® spending accounts make a smart addition to your health plans. They’re easy to manage with online tools and offer convenient funding methods and on-demand reporting.

Health savings accounts (HSAs)

HSAs offer your employees a tax-advantaged way to save and pay for qualified out-of-pocket health care expenses. To enroll in an HSA, the employee must be covered by a qualified high-deductible health plan (QHDHP). HSAs can be funded by an employer, an employee, or both.

Employees contribute to HSAs through pre-tax payroll deduction, check, or online transfer. Contributions are tax-deductible, and distributions are tax-free when used to pay for qualified medical expenses. Interest and earnings are also tax-free.1

Employers may make pre-tax contributions to their employees’ HSAs. These contributions are not subject to federal income tax, Social Security, or Medicare tax.

The HSA is employee-owned — so if he or she changes jobs, their account goes with them. In addition to using the HSA to pay for out-of-pocket health care costs, employees may also open an optional investment account with a portion of their funds allowing the HSA to become an investment vehicle.2, 3

The BlueSaver® HSA Solution

The BlueSaver HSA Solution is fully integrated with our medical products and services, delivering a seamless experience for your employees. With claim and payment integration, managing the account through ibx.com or the IBX Mobile App is simple and efficient — empowering members to take full advantage of their HSA benefits and become more informed health care consumers.

WealthCare Saver investment solution

Members who are enrolled in a QHDHP with an HSA cash balance greater than $500 have the option to invest their funds utilizing a multi-path investment solution that includes a full range of investing models for every investor experience level.2 Best of all, the new solution is fully integrated, allowing account holders to manage all aspects of their HSA through ibx.com or the IBX mobile app.3

Investment options include:

  • Managed. A portfolio option based on risk profile
  • Self-directed. A curated list of low-expense ratio exchange-traded funds (ETFs)
  • Brokerage. A flexible investing option with over 500 ETFs and individual stocks, including fractional trading

Cash balance interest options available to account holders with HSAs

Members enrolled in a QHDHP with an HSA can choose between two interest options for their cash deposits.4

  • High-yield. Account holders have the potential to earn a higher interest rate on their cash balance. The high-yield cash account funds are not FDIC-insured and are held in a deposit account backed by a highly rated insurance company.
  • Traditional. Account holders earn lower interest rates on their HSA balance. Funds are held at a depository institution and insured by the FDIC.

Contact us

For more information about the BlueSaver HSA Solution, contact your IBX account executive, broker, or consultant — or call 215-241-2263.

Health reimbursement arrangements (HRAs)

HRAs are tax-advantaged accounts funded with employer dollars to pay employee expenses not covered by their health plan. Employers outline what expenses will be covered by the HRA within the limitations outlined by Internal Revenue Service Publication 969, and employers can deduct the amount of their contributions when employees use the funds. An HRA can be structured to allow unused funds to be carried forward, and employers can deduct the amount of their contributions when employees use the funds. HRA funds are not portable so an employee cannot take their HRA funds to a new employer.

The BlueSaver HRA

The BlueSaver HRA offers employers flexibility and a wide range of options to align the HRA with your organization’s overall health care and financial strategies.

Features of the BlueSaver HRA include:

  • Flexible coverage options — including deductible, copay and/or coinsurance, limited types of expenses5
  • The ability to reimburse a percentage of each claim or to include an employee up-front out-of-pocket requirement before the HRA covers an expense
  • Easy enrollment based upon medical plan election
  • Easy account maintenance and on-demand reporting
  • Automated claims rollover
  • Availability of a direct payment to provider option
  • Optional no-cost debit card for the subscriber and dependents over 18

Flexible spending accounts (FSAs)

FSAs are personal accounts funded by employees. An FSA lets your employees set aside pre-tax dollars to pay for eligible expenses like health care and/or dependent care, depending on plan type. Employers benefit by offering FSAs because participation reduces employees’ taxable income — which can reduce FICA taxes for employers.

  • Dependent Care FSA. Dependent care FSAs (DCA) allow employees to pay for work-related dependent care expenses with pre-tax dollars, allowing them to save on federal income tax, FICA tax, and, as applicable, state income taxes.
  • Limited Purpose FSA. If you offer an HSA-compatible high-deductible health plan (HDHP) paired with an HSA, you may also offer a Limited Purpose FSA to those employees who have an HSA. This FSA is designed to complement the HSA and can be used to pay for eligible vision and dental expenses.

Please note: BlueSaver FSAs are available to groups of 100+ eligible employees.

The BlueSaver FSA

The BlueSaver FSA is closely integrated with our medical products and services to improve the experience for members and help them take full advantage of their benefits. The dependent care account offers similar features  —  including online claims submission to speed up reimbursement.

Features of our BlueSaver health care FSA include:

  • Easy account maintenance and on-demand reporting
  • Automated claims rollover
  • Optional direct payment to medical provider
  • No-cost debit card for the subscriber and dependents over 18

Refer to IRS Publication 502 for a complete list of qualified medical and dental expenses. Refer to IRS Publication 503 for more information about dependents and dependent care FSAs.

1 Tax savings are at the federal level. State tax laws vary.

2 Invested funds are not FDIC-insured, may lose value. The balance in the HSA Investment Account is subject to investment risks, including fluctuations in value and the possible loss of the principal amount invested. Investing through the WealthCare Saver investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement(s). For information regarding underlying investment expenses, earnings, and distributions, see the applicable investment prospectus and other publicly available information.

3 An optional investment account may be opened when the account balance exceeds $500; additional fees apply.

4 This choice only impacts the HSA cash balance and does not impact the investment account — if the account holder is enrolled in one. Account holders may change their interest option preference at any time.

5 Because an HRA offers employer-owned funds, there is greater flexibility in what expenses are covered — provided they are considered qualified medical and dental expenses. Refer to IRS Publication 502 for a complete list of qualified medical and dental expenses.