Download - Spending Accounts Overview & Conversion
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Spending Accounts Overview & Conversion
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The Next Generation of Spending Accounts
Our new spending account products are closely integrated with our medical products and services.
They provide plan design flexibility and ease-of-use to employers while making it easier for members to manage their benefits and make informed decisions.
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Product FeaturesA robust set of capabilities that make it easier for members and employers to optimize spending account usage.
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Employer Enhancements
• Streamlined enrollment
• New online capabilities, including robust online reporting
• Convenient ways to fund accounts
• Simplified billing
• Consolidated plan activity statement
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Employer Portal Access
• Enhanced portal available at plan renewal
– Gateway to spending account reporting, billing, and group administration
• Spending accounts require additional access permissions to access portal
– Portal of most value for HRA, FSA, and HSA with employer contributions
– Information provided in second employer mailing
– Forms will also be available in ROAM
• Broker can have access to spending accounts with appropriate approvals
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Employer PortalThe employer portal offers a direct view into spending account elections, accounts details, status, and reports.
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Reporting Reports tab provides quick access to your Spending Account reports.
New reports include:
•Benefit summary report
•Participant deduction details report
•Group payment summary report
•Participant payment details report
•Payment register report
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Member Enhancements• Spending accounts are integrated into
the member portal
• Pay-the-provider feature
• Rapid claim submission and reimbursement
• Content-rich plan activity statement
• Integrated feature-rich HSA from Bank of America with no monthly member fee
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Spending accounts incorporated into the member portal.
Spending Accounts
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Information on EOBs, claims, spending accounts, and payments are consolidated in the Plan Activity Statement, a single, user-friendly statement.
Plan Activity Statement Consolidates Information
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The Bank of America HSA
• Integrates into member portal• Integrated customer support• No monthly member fee• Investments available once $500 accrued
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ConversionsTransition processes for existing customers to our new spending account solutions
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Spending Account Conversions
• Spending Account conversions align with the broader migration initiative.
• If spending accounts require additional steps, there are specific communications that will occur to employers and members.
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Conversion of Existing FSA / HRA Customers
• The employer controls the spending account funding and design. The conversion of accounts and services aligns with the medical migration.
• Spending account conversions are part of open enrollment meetings with IBC.
• IBC has communications materials and/or content to facilitate the migration.
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Conversion of HSA Customers
The HSA accounts and any balances at Bancorp will continue to be available.
– Members can continue to use their HSA account and any investment accounts.
– Customers can opt to work directly with Bancorp on accounts/contributions.
Bancorp HSAs are not part of the new, integrated experience.
– IBC will no longer send member enrollments to Bancorp (manual or EDI)
– IBC and Bancorp will no longer reconcile accounts
Changes that will occur with Bancorp and existing HSAs
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Conversion of HSA Customers
• By default, the decision to open an HSA account is member driven.
• At plan renewal, members will have a link they can click to initiate account opening at Bank of America.
– Link is not available before plan renewal.
• After opening, members receive a welcome kit and an HSA debit card.
– Cycle takes 2-3 weeks, depending on how quickly the member acts.
• Customers on the “exclude” list will not be included in the HSA conversion process.
What steps will be taken with Bank of America?
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Conversion of HSA Customers
• Employers who do not make contributions will not be impacted.
• Employers begin making contributions once accounts are open.
• The Employer Portal is the gateway to all employer activity.
• Employers will have the option of automatic or file-fed contributions.
– There is a dedicated HSA contribution team available for support.
• Online reporting allows the employer to see the status of member accounts.
Employers making contributions to the HSA (employer or payroll)
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HSA Communications
• HSA-specific mailings to customers and members currently in a QHDHP and with Bancorp HSA.
• Customer outreach
– Before purchasing a medical plan: A letter and FAQ that explains the options and processes and advises that there will be outreach to members.
– Post plan purchase: As appropriate, communication with detailed instructions how to make employer contributions. Will also include information on portal access.
• Member outreach
– Post QHDHP election: Information about HSA options, how to open a Bank of America HSA, and information on how to consolidate HSA funds.
• Producing agents will be informed through e-bulletins.
IBC outreach will keep employers and members informed
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HSA Conversion TimelineOct Nov Dec Jan
10/25 11/1 11/15 11/29 12/6 12/13 12/20 12/27 1/1 1/15 1/29
First Employer Letter & FAQs
Second Employer Letter:
•Checklist•Service agreement•Portal access information•Link to Contribution and Reporting Guides
Member Notification Letter
Member Portal AccessMembers begin opening HSAs
Employer Portal Access
HSAs open
Customer Communications
Member Communications
Employer Contributions
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Spending Account Considerations For successful rollout of spending accounts
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21
Open Enrollment during ConversionSize of Group
Setup Options Spending Accounts Options
2-50 •Paper application•Through ROAM
HRA Based on medical electionHSA Member elects after plan renewal after
enrolling in QHDHP
51-99 •Paper application•Spreadsheet*•Through ROAM
HRA Based on medical electionHSA Member elects after plan renewal after
enrolling in QHDHP
100+ •EDI•Paper application•Spreadsheet*
HRA Based on medical electionHSA Work with IBC representativeFSA Work with IBC representative
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Spending Account Setup Timeline
• Timing varies by product and options
• Debit card in hand for plan renewal date requires the greatest lead time
RENEWAL Jan. 1, 2014
INFO NEEDED & RECEIVED NO LATER THAN
Information Needed for Setup# of Business Days to Process
Drop Dead Date to Receive/Start
Provided by Client
Group 12-18 Nov. 18, 2013
Enrollment 3-5 Dec. 11, 2013
Other Setup
HSA Opening 3-5 Dec. 16, 2013
Debit Card 7-10 Dec. 26, 2013
TOTAL LEAD TIME 45 days Jan. 1, 2014
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Spending Account Invoicing Is Through e-Bill• Employers must have access to e-bill.
• Two types of invoices:
– Administrative services invoice
• Monthly invoice based on participation*
– Funding invoice
• Weekly invoice to cover claims IBC has paid
• Only for HRA and FSA
* Does not apply for HRA/HSAs in the 2-50 market
Payment with e-
Bill
View invoice summaries
online
Pay bills online (one-time, automatic, recurring)
Summary and detail-level
reports
Enhanced notification
system
Simple, customizable
and easy payment process
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Spending Account FeesGroup Size Single Account
2 - 49HRA or HSA fee included
51 - 249 $3.95
250 - 499 $3.85
500 - 999 $3.65
1,000 - 2,499 $3.45
2,500 - 4,999 $3.25
5,000 - 9,999 $3.05
10,000+ $2.85
• Fees are Per Account Per Month (PAPM)
- FSAs Only available for groups of 100+
- FSA (health and/or dependent care) Count as one account combined
• Set up or Renewal Fee - No Charge
• Monthly Minimum - None
• External Carrier Files - $750 per file