Health savings account (HSA) employer …

1 Page 1 savings account (HSA) employer administration guideHealth savings account (HSA) employer administration guidePage 2 of contents (throughout this document, anything that is in orange and bold is a link that you can click on) Optum Bank overview ..3 Enrollment methods ..3 employer portal ..3 Batch with affirmationDirect ..4 Through medical eligibility system (UnitedHealthcare clients only) ..5 Online ..6 Paper ..6 account opening process ..7 account number file ..8 employer best practices ..8 Contribution guide ..9 Contribution methods ..9 employer portal ..10 PPD ACH ..10 Combined sum ACH or wire ..10 Employee-initiated contributions.

2 10 Online ..10 Check ..10 employer reporting ..10 Health accounts education suite ..11 account holder statements ..11 Tax forms ..11 Frequently asked questions ..12 Health savings account (HSA) employer administration guidePage 3 Bank overviewThank you for choosing Optum Bank , Member FDIC, as your Health savings account (HSA) administrator. Optum Bank has more than million HSAs1. This guide is intended to help you set up your HSA and help ensure a smooth transition to and high enrollment in your HSA-qualifying Health plan. We have also included links to additional resources to help you and your employees get the best possible value from your offer the highest level of service to all our clients, from small employer groups to Fortune 500 companies.

3 We partner with most medical insurance carriers and if your Health plan needs change, you can retain Optum Bank as the HSA administrator. If you have any questions or comments, please contact our Broker employer Service Team (BEST) by phone at 1-866-234-8913, option 4, Monday through Friday, 8:00 to 8:00 Eastern time. You can also email us at We will respond to your email within 48 hours. Enrollment options:Optum Bank offers four enrollment options: two that are employer facilitated and two that are employee initiated. Review each method and select the one that makes the most sense for you and your 1: employer portalAt , benefit managers and administrators can manage the HSA enrollment process online.

4 This method is used commonly by mid-size and small employers . The portal allows the benefit manager to view active accounts tied to their group, enroll individuals and submit funds for active employer or third-party enrollment vendor becomes a service provider for Optum Bank. Service providers must sign an agreement with Optum Bank in which they agree to:1) Obtain employees acceptance of an Authorized agent ) Fulfill all requirements for electronic signature ) Maintain safeguards to protect the confidentiality of employee participation in the HSA:Motivate your employees to open an HSA and deposit Health care dollars. During the enrollment period, your employees are more likely to focus on understanding changes and making benefit decisions, not on how to access and use their Health care services and benefits when they need them.

5 As you guide your employees through the process, keep reminding them of the benefits of opening and funding an account and the importance of saving enough money in their HSA to cover their Health plan deductible and coinsurance. Offer payroll contributions with tax advantages. employers that do not allow payroll deductions typically only see 10 15% of employees contribute to their HSA, leaving account balances far short of deductibles. Allowing your employees to make contributions through pre-tax payroll deductions is an effortless way to increase HSA contributions. Pre-tax payroll contributions also provide immediate federal income and, in some instances, state income and FICA tax savings to your employees while reducing your payroll tax burden.

6 **Most states do not tax HSA contributions, with the exceptions of California, Alabama and New Jersey where HSA contributions are taxed. This information is subject to change. Please consult your tax/financial professional or consult your state department of revenue for more methodDescriptionEmployer size 1) employer portal employer -facilitated enrollment through a popular with small and mid-size employers2) Batch enrollmentEmployer-facilitated enrollment through a batch popular with large employers3) Online enrollmentEmployee-initiated enrollment. employers should provide employees with enrollment link and employer group popular with small and mid-size employers4) Paper applicationEmployee-initiated enrollment.

7 employer should provide employees with applications. Typically only used when no electronic access is available to employees Important note: Optum Bank can advise on general HSA rules and the daily logistics for your accounts; however, you are encouraged to contact a tax advisor for questions related to your specific situation. Optum Bank cannot provide tax Based on HSA book of business as of June 30, savings account (HSA) employer administration guidePage 4 requirements: During the enrollment process, you must: 1) Display/distribute the Authorized agent agreement to employees. 2) Capture the employee s affirmation to the Authorized agent agreement in accordance with the signature ) Agree to terms and conditions during to each enrollment requirements: your employees must:1) Affirm to open an HSA with Optum Bank by reviewing and agreeing to the Optum Bank Authorized agent to enroll your employees through the employer portal: You will receive an email invitation to register on After completing the registration, you can enroll employees online.

8 For information on how to register for this tool, please see the employer portal registration logged into the website, you can begin to enroll individuals by selecting the Enroll a Participant link under the Participant tab. After entering the information in the corresponding prompts, a review screen will appear asking you to continue or enter additional enrollments. Once all applications have been entered, you will be prompted to review and accept the terms and conditions for HSA 2a: Batch enrollment with affirmation directThe direct batch enrollment with affirmation process allows you, or a third party, to submit an electronic data file to Optum Bank to open your employees HSAs on their behalf.

9 This method is most popular with larger employer you are an employer interested in using the direct batch with affirmation enrollment method, please contact our Broker employer Service Team at 1-866-234-8913, option 4, or email us at and ask for assistance. A member of the team will engage an HSA implementation manager to begin the set-up process. Please be sure to include your contact information with your request. The following information is required for each individual opening an account :Demographic informationHealth plan information Full name Home street address (cannot be a box) Social Security number Date of birth Email High-deductible Health plan (HDHP) effective dateHealth savings account (HSA) employer administration guidePage 5 a service provider of Optum Bank: The employer or third-party enrollment vendor becomes a service provider for Optum Bank.

10 Service providers must sign an agreement with Optum Bank in which they agree to:1) Obtain employees acceptance of an Authorized agent ) Fulfill all requirements for electronic signature ) Maintain safeguards to protect the confidentiality of employee requirements:1) Sign and return the HSA enrollment and contribution agreement. 2) Display/distribute an Authorized agent agreement to ) Capture the employees affirmation to the Authorized agent agreement in accordance with the signature ) Capture all data required for Optum Bank to open an HSA, as specified in the batch file layout. 5) Transmit the batch file to Optum Bank via Secure File Transfer Protocol (SFTP) requirements:1) Affirm to open an HSA with Optum Bank by reviewing and agreeing to the Authorized agent 2b: Batch enrollment with affirmation through medical eligibility system (UnitedHealthcare clients only)For this method of enrollment, one enrollment file is sent to UnitedHealthcare.