See specific eligibility questions below:

Who is eligible to contribute to an HSA?
To be eligible to open or contribute to an HSA, you must be enrolled in a federally qualified High Deductible Health Plan (HDHP) like the GuideStone Health Saver 2800 medical plan (available 1/1/09).

You cannot be:

• Covered by any health plan other than a qualified High Deductible Health Plan (dental and vision plans are not included in this restriction);
• Enrolled in Medicare; or
• Claimed as a dependent on another individual’s tax return.

When does eligibility for an HSA begin and end?
You can establish an HSA on the first day of the month that you have a High Deductible Health Plan and are otherwise an eligible individual. If you obtain a High Deductible Health Plan after the first of the month, you are not eligible to establish or contribute to the HSA until the first day of the following month.

You lose eligibility to establish or contribute to an HSA if:

• Covered by any health plan other than a qualified High Deductible Health Plan (dental and vision plans are not included in this restriction);
• Enrolled in Medicare; or
• Claimed as a dependent on another individual’s tax return

However, losing eligibility does not necessarily mean you lose your HSA if the account is already established. You can keep the HSA and continue to use the funds on a tax-preferred basis for qualified medical expenses. You cannot continue contributing to the HSA or establish another HSA unless you become an eligible individual again.

What can the HSA be used for on a tax-preferred basis?
The HSA can be used for “qualified medical expenses,” as defined by the IRS in Section 213(d) of the Internal Revenue Code. Broadly speaking, these are healthcare expenses for the prevention and treatment of health conditions, including dental and vision expenses. They exclude services that are cosmetic in nature. 

In addition, you can use the HSA to pay for certain types of health insurance premiums, including:

1. Qualified long-term care insurance.
2. COBRA healthcare continuation insurance.
3. Healthcare coverage while receiving unemployment compensation.
4. Premiums for Medicare Parts A and B, a Medicare HMO or your share of employer-sponsored health insurance.
   Note: Premiums for Medicare supplemental (Medigap) policies are not qualified expenses.

You cannot use the HSA to pay for services already reimbursed elsewhere, such as through your health plan. In other words, you could use it to pay for expenses attributable to your deductible or to your portion of any coinsurance, but not for amounts paid by your health plan after the deductible is met.

Whose responsibility is it to ensure that I am eligible for an HSA, to monitor the contributions limits and to use the funds for qualified medical expenses?
As the taxpayer, you are responsible. Neither the health plan, your employer, nor the HSA custodian has any obligation to verify that you are using your HSA in accordance with the law. You should consult your tax advisor to ensure that you understand HSAs and your eligibility.

Your BlueAccount HSA is easy to set up and offers the convenience of immediate access to information and account setup via your Highmark member website. If you are a Highmark Blue Cross Blue Shield member, or once you become a member, simply:

1. Log on to your member Web site at www.highmarkbcbs.com
2. Choose the "Your Spending" tab at the top of the page  
3. Select the "Spending Account" link 
4. Choose "Open a Health Savings Account" to get more information on investment choices and directions for establishing your account.

If you do not have immediate access to the website, call the toll-free number 1-877-245-0116.  You’ll receive everything you need to open your account.  Your employer may offer automatic payroll deduction, or you may contribute to your account on your own through check payments or direct deductions.

To help you manage your BlueAccount HSA, simply log on to www.highmarkbcbs.com where you will be able to check account balances as well as view deposits and a history of your transactions — everything you need to manage your account!

For additional tips and instructions, please visit our page dedicated to managing your existing HSA account.

See specific questions below:

How much can be contributed to an HSA?
The maximum amount you may contribute each calendar year to your HSA is the maximum set by the IRS. Effective January 1, 2010, the IRS maximum will be $3,050 for an individual with High Deductible Health Plan coverage only for himself/herself or $6,150 for all persons with High Deductible Health Plan coverage for a family.  Individuals who are 55 or older are allowed an additional catch-up contribution of $1,000.

Once you are no longer an eligible individual — e.g., you lose your High Deductible Health Plan or acquire other coverage in addition to your High Deductible Health Plan — you can no longer contribute to your HSA but you can maintain it and use it for distributions.

How are the contribution limits determined for an individual?
Individuals who are eligible on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch-up contribution, if 55 or older by year end), regardless of the number of months the individual was an eligible individual in the year. For individuals who are no longer eligible individuals on that date, both the HSA contribution and catch-up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual. Failure to comply with IRS regulations regarding HSA contributions could result in a 10% penalty.

Do I have to contribute the maximum?
You can contribute any amount up to the maximum. Your HSA account will include minimum requirements for initial and/or ongoing deposits.

When can contributions be made?
Contributions can be made at any time during the tax year, up to the filing limit for your federal income tax return. Contributions can be made on a periodic basis (e.g., monthly) or in one lump sum.

Flexible Spending Accounts (FSAs) and Heath Reimbursement Arrangements (HRAs)
Yes, one time only. Employees can start an HSA by making a one-time tax-free transfer of unused Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) funds* to open an HSA. Transfer amounts from FSAs or HRAs cannot exceed the lesser of (1) the balance in the health FSA or HRA as of September 21, 2006; or (2) the balance of the health FSA or HRA as of the date of the transfer. The transfer must be made before Jan. 1, 2012.

*If allowed by the employer. Check with your Human Resources department to see if your employer is willing to allow you to use HRA funds to open your HSA.

Individual Retirement Accounts (IRAs)
Participants can make a one-time-only distribution from an IRA (Individual Retirement Account) to an HSA without penalty or tax. Distributions cannot exceed the applicable annual maximum HSA contribution limits.

Generally, the money in your account is yours to manage as you deem appropriate. Some restrictions do apply to the HSA that’s available to GuideStone members through Highmark’s BlueAccount.

• Minimum investment: You must have at least $500 in the checking account before you can invest in mutual fund options.
• Distributions: You are not required to maintain a $500 balance in the checking account, but distributions can only be made from this account. If you have money in mutual funds, you are responsible for transferring funds to the checking account if additional funds are needed to cover your reimbursement request.
• Minimum balance: Your HSA must have a minimum balance of $50 for as long as you maintain it. A request for reimbursement that reduces your account balance below this amount will be adjusted in order to keep the required minimum. 
• Contribution limits: Deposits to your account must be at least $25.

• There is an administration fee of $3.50 a month. This fee will be deducted automatically from the HSA mid-month.
  
• The mutual funds within the HSA have their own expenses, as described in the prospectus. Call 1-877-245-0116 and request a GuideStone HSA Application Package.
  
• The HSA custodian or its affiliated agency may withhold and retain an amount of up to 1.25% (on an annualized basis) of the interest rate payable on your daily balance in the Deposit Account as compensation for maintaining the Deposit Account on behalf of HSA account owners.

A Health Reimbursement Arrangement (HRA) is an employer-provided medical reimbursement plan that:

• Is funded solely by employers
• Reimburses employees tax-free for “medical care expenses” (for individual, spouse and/or dependents)
• Is funded up to a specified dollar amount per coverage period (usually a year)
• Is non-discriminatory in reimbursement for all eligible employees

Benefits to the employer:

• Can pair with a higher deductible plan, which may help save on premium
• Helps provide quality benefits while controlling costs — you may avoid paying for coverage your employees don’t use
• This unfunded approach allows payments to be made from employer’s general assets
• Flexibly designed:
• Timing of HRA fund availability
• Amount of HRA
• Who pays first — employer or employee

Benefits to the employee:

• HRA can help offset increased out-of-pocket expenses of higher deductible
• Lower monthly premiums can reduce employee share of cost
• HRA reimbursements are tax-free
• Increases employee awareness of true cost of health care
• If allowed by employer, HRA rollover option encourages wise spending choices

It allows you to reduce your taxable salary and put amounts aside to reimburse the cost of qualified expenses such as medical, vision, dental and over-the-counter drug expenses not covered by insurance, as well as dependent care.  The reimbursement is tax-free!