OptumHealth Financial Services

Our Financial Products

Our Financial Products

Flexible Spending Account (FSA)

Health Incentive Account (HIA)

Health Reimbursement Account (HRA) and Funded Health Reimbursement Account (FHRA)

Health Savings Account (HSA)

Retiree Medical Savings Account (RMSA) and Retirement Reimbursement Account (RRA)

Flexible Spending Accounts

Flexible Spending Accounts (Medical and Dependent) are set up by employers to provide employees with income tax-free savings to be used toward qualified medical or dependent care expenses. In addition, they offer the advantage of reduced FICA taxes for both parties. Employees decide on their contribution based on what they believe their qualified, annual expenses will be. This contribution can be easily made through payroll deductions. Yearly contribution limits can be set by the employer for the medical FSA. The IRS regulates that the dependent care FSA annual limit be capped at $5,000.

The full amount of the annual contribution is available from the first day the Flexible Spending Account goes into effect for the medical FSA. For the dependent care FSA, only funds that have been contributed by the employees can be used for expense reimbursement. IRS regulations no longer mandate that funds not used by the end of the year be forfeited. Instead employers can now elect to provide employees with time extensions before funds are forfeited. The extension period can be applied to both the medical and dependent care FSA.

A widely accepted Consumer Accounts MasterCard^SMPrepaid Debit Card can be used as a form of payment for all eligible health care expenses, such as copayments, deductibles, prescriptions, vision care, certain over-the counter items, and others.

Employees can research information and manage their account online. Information is also available through our broad customer/self-service options Monday-Friday from 8am EST to 10pm EST. Automated toll-free self-service is also available 24 hours a day, seven days a week. Accounts are automatically updated following a transaction.

Health Incentive Account (HIA)

A Health Incentive Account (HIA) is funded by employers in exchange for employee�s participation in incentive programs that promote healthy behavior. Activities can range from participation in exercise programs and attending health fairs to getting regular physicals.

HIA funds can be used to pay for deductibles, co-insurance and other items that would otherwise have to be paid for by the employee. While employers are responsible for making the contributions, the employees are responsible for managing the account, and control how their health care dollars are spent.

Health Reimbursement Account (HRA)

A Health Reimbursement Account is established through employer contributions for the purposes of covering a portion of its employees' medical expenses, such as deductibles, co-insurance and other items that would otherwise have to be paid for out of pocket. Unused funds can roll over year to year but are not portable once an employee leaves the health plan.

While the employer is responsible for funding the account, the account is managed by the employee who retains control of how their health care dollars are spent. In many instances, funds remaining at the end of a year will carryover to future years. However, if an employee leaves, they cannot take remaining funds with them to another employer.

Funded Health Reimbursement Accounts (FHRA)

The Funded Health Reimbursement Account (FHRA) consists of individual accounts set up in a trust by the employer on behalf of its employees for use in retirement to reimburse premiums and/or out of pocket health care expenses. Since contributions are permitted only by employers, the funds grow tax-free for employees, and withdrawals for reimbursements of qualified 213(d) expenses are accessible anytime without penalty. Employees also control how funds are invested. These assets are protected by VEBA Trusts from creditors, plan termination, and income, estate and gift taxes.

Funded HRAs enable public sector employers and labor unions to reduce the cost of current benefits, define contributions towards future benefits, and eliminate reported health benefit liabilities for future retirees. They are a great way to accumulate tax free employer contributions and can reduce the impact of retiree health benefits on a municipality's debt rating.

Health Savings Account (HSA)

Health Savings Accounts provide a tax-advantaged way to pay current medical expenses and/or accumulate funds for future needs. Congress designed the accounts to help individuals take more control over how their health care funds are saved and spent. Both employees and employers can make contributions to HSAs on a tax-free basis. Individuals enrolled in qualified high deductible health plans may deposit and accumulate funds tax-free from year to year to pay for eligible health care expenses (such as medical, dental and prescription drugs). Visit www.irs.gov for a list of qualified medical expenses, as defined in Code § 213(d) (tax deductible medical expenses).

Unused funds rollover from year to year, and grow tax-free. The money is there when needed for qualified healthcare expenses — now or in the future. Flexible funding allows anyone to make contributions to the account including employers, accountholders, and/or any other person. The account is portable and travels with you as you move on to other employment opportunities or retire.

A widely accepted Consumer Accounts MasterCard^SMPrepaid Debit Card can be used as a form of payment for all eligible health care expenses, such as copayments, deductibles, prescriptions, vision care, certain over-the counter items, and others.

OptumHealth Bank, Member FDIC, now offers three distinct Health Savings Account options:

OptumHealth eAccess HSA — Low-cost HSA designed for active health care spenders who do not carry a large balance and prefer a lower monthly maintenance fee. No interest is paid on account balances.
OptumHealth eSaver HSA — A good choice for a broad range of needs — easy access to pay current expenses, competitive interest rates, moderate fees and the option to invest balances in no-load mutual funds with no additional fee.
OptumHealth eInvestor HSA — Designed for employees with less of a need to spend now, and who plan to contribute to and grow their HSA balances for the long term. Ability to invest more money in mutual funds by paying an additional investment fee.

Retiree Medical Savings Account

Retiree Medical Savings Accounts (also known as Retirement Reimbursement Accounts) are an employer funded benefit designed for retiree health care related expenses. Employees may use the funds on a tax-free basis to reimburse themselves for health care expenses including insurance premiums or qualified medical expenses. The amount employers allocate to their employee accounts may vary. Some will base it on years of service; some will pay it in a lump sum. Additionally, employers have the option to transfer existing Health Reimbursement Account balances upon retirement. The retiree healthcare account plans are flexible based on the employer's needs and goals.