Overview

You can save money on health care and dependent care expenses by paying for them with tax-advantaged accounts. For more details and to enroll, visit the Mercer Marketplace 365+ website. Learn how to access the site.

2020 accounts

  • Health Savings Account (HSA): Available only to employees who enroll in the $4,500, $2,850 or $1,850 Deductible Plans
  • Flexible Spending Accounts (FSAs)
    • Health Care FSA: Available to employees who do not enroll in an HSA, or do not elect medical coverage through Transamerica
    • Combination FSA: Available to employees who are enrolled in an HSA
    • Dependent Care FSA: Available to all employees

Key features

  • Lower income taxes – Money goes into your HSA and/or FSA from your paycheck before taxes are deducted, which means you won’t pay any taxes when you reimburse yourself for eligible expenses.
  • Convenient payroll deductions – Contribute to your accounts easily and effortlessly.
  • Helpful budgeting tool – Plan for upcoming expenses by setting aside money each paycheck.

If you enroll in an HSA, you will receive information directly from Optum Bank regarding your debit card and account information. If you enroll in an FSA, you will receive information directly from Discovery Benefits regarding your debit card and account information.

Compare
Compare health accounts

HSA vs FSAs

Health Accounts
Access your account
Eligible
What's eligible?
How much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax and $153 in FICA tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.

 

Without an HSA or FSA, Tom would pay … Savings
24% in federal income tax……………………………………………………….. $480
5% in state income tax……………………………………………………………. $100
7.65% in Federal Insurance Contributions Act (FICA) tax…………. $153
His total tax savings for the year with an HSA or FSA …………. $733

This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules and other factors. Please consult a tax, legal or financial advisor about your own personal situation..

Health Savings Account

Health Savings Account

With the $4,500, $2,850 and $1,850 Deductible Plans, you may be eligible to open and contribute money to a tax-advantaged Health Savings Account (HSA) ― and receive Reward Dollars as a reward for completing certain wellness activities. Optum Bank is the administrator for your HSA.

Are you eligible for an HSA?

In order to establish and contribute to an HSA, you:

  • Must be enrolled in an HSA-eligible high-deductible health plan, like the $4,500, $2,850 or $1,850 Deductible Plans.
  • Cannot simultaneously participate in the Health Care FSA (but participation in a Combination FSA is allowed).
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan, Medicare or Tricare.
  • Cannot be claimed as a dependent on someone else’s tax return.

You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.

HSA features

Contribute money on a pre-tax basis.
  • Contribute money to your HSA through pre-tax payroll deductions (up to annual limits).
  • Change your contribution without a qualifying change in status.
Receive Reward Dollars for completing certain wellness activities.
  • Up to $500 for Self Only coverage
  • Up to $800 if you cover a spouse and/or child(ren) on your medical plan
Pay for care tax-free.*
Carry unused money over.
  • All the money in your HSA is yours to keep, year after year.
  • You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, which gives you the potential for tax-advantaged earnings growth and a way to plan ahead for your medical costs in retirement.

Contribution limits

In 2020, the IRS limits on total contributions to your account (from both you and Transamerica) are:

  • $3,550 for Self Only coverage
  • $7,100 if you cover a spouse and/or child(ren) on your medical plan

These limits include contributions from all sources, including Reward Dollars deposited by the Company, before-tax payroll contributions and after-tax non-payroll contributions that you make directly to the account.

Add $1,000 to these limits if you’re age 55 or older for “catch up” contributions.

Please note: In order to receive Company contributions to your HSA, you must elect an HSA when you enroll in benefits through Mercer Marketplace 365+.

Increase your tax savings with a Combination FSA

Consider contributing to an HSA and a Combination FSA for additional tax savings. The Combination FSA has an added advantage ― in addition to eligible dental and vision expenses, you can also use the account to reimburse yourself for medical and prescription expenses after meeting a specific IRS-defined portion** of the medical plan deductible.

* Money in an HSA can be withdrawn tax free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

** The IRS-defined deductible for 2020 is $1,350 for Self Only and $2,700 for all other coverage tiers, regardless of whether you choose the $1,850, $2,850 or $4,500 Deductible Plan.

If you enroll in an HSA, you will receive a debit card and account information from Optum Bank.

Flexible Spending Accounts

Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with pre-tax money. There are separate FSAs for health care and dependent care. Learn more on the Mercer Marketplace 365+ website. Learn how to access the site. Discovery Benefits is the administrator for our FSAs.

Health Care FSA

Available to employees who do not enroll in an HSA, or do not elect medical coverage through Transamerica

  • Contribute through pre-tax payroll deductions to help cover eligible medical, prescription, vision and dental expenses
  • Contribute up to $2,750 in 2020 through pre-tax payroll deductions.
  • Choose your contribution amount during enrollment. You can only change your contribution amount during the year if you have a qualifying event.
  • Pay your eligible expenses by using your FSA debit card, or log on to Mercer Marketplace to request reimbursement for payments you’ve made.
  • Your entire annual contribution amount is available to you from the beginning of the plan year.
  • Up to $500 of unused money may be carried over to the next year; amounts above $500 will be forfeited. You must elect to contribute to a Health Care FSA next year to be eligible for any carryover.
  • You have an additional 90 days after the end of the calendar year to submit receipts for expenses you incurred during the prior year. You cannot use your FSA debit card to pay expenses from the previous year; you must submit receipts to Discovery Benefits via fax, mail, online or mobile app to request reimbursement.

Combination FSA

Available only to employees who enroll in an HSA-eligible high-deductible health plan  

  • Designed to work together with your Health Savings Account (HSA) for additional tax-saving opportunities.
  • Works like a Health Care FSA, but has an added advantage — in addition to eligible dental and vision expenses, you can also use the account to reimburse yourself for medical and prescription expenses after meeting a specific IRS-defined portion* of the medical plan deductible. For a list of eligible expenses, refer to IRS Publication 502
  • When you meet the IRS-required deductible, you must submit the Deductible Verification Form (available on the Mercer Marketplace 365+ website — learn how to access the site) to Mercer Marketplace 365+. This document serves as a one-time notification that the deductible was met. You may use funds in your HSA while meeting this deductible requirement.
  • Contribute up to $2,750 in 2020 through pre-tax payroll deductions.
  • Choose your contribution amount during enrollment. You can only change your contribution amount during the year if you have a qualifying event during the year.
  • Pay your eligible expenses by using your FSA debit card, or log in to Mercer Marketplace to request reimbursement for payments you’ve made.
  • Your entire annual contribution amount is available to you from the beginning of the plan year.
  • Up to $500 of unused money may be carried over to the next year; amounts above $500 will be forfeited. You must elect to contribute to a Combination FSA next year to be eligible for any carryover.
  • You will have an additional 90 days after the end of the calendar year to submit receipts for expenses you incurred during the prior year. You cannot use your FSA debit card to pay expenses from the previous year; you must submit receipts to Discovery Benefits via fax, mail, online or mobile app to request reimbursement.

* The IRS defined deductible for 2020 is $1,350 for Self Only and $2,700 for all other coverage levels, regardless of whether you choose the $1,850, $2,850 or $4,500 Deductible Plan.  

Dependent Care FSA

Available to all employees

  • Contribute up to $5,000 annually through pre-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.
  • Log in to Mercer Marketplace to request reimbursement for payments you’ve made.
  • Choose your contribution amount during enrollment. You can only change your contribution amount during the year if you have a qualifying life event.
  • Unused money does not carry over at the end of each year — you must use it or you lose it.

If you enroll in an account, you will receive a debit card and account information from Discovery Benefits. To receive reimbursement for charges incurred in 2020, you will need to submit receipts for reimbursement to Discovery Benefits (via fax, mail, online or mobile app) within 90 days after the end of the calendar year.

Compare Health Accounts

Health account comparison


HSA Combination FSA Health Care FSA

Designed to work with

$4,500 Deductible Plan

$2,850 Deductible Plan

$1,850 Deductible Plan

$4,500 Deductible Plan

$2,850 Deductible Plan

$1,850 Deductible Plan

$900 Deductible Plan

If you waive medical coverage if you enroll in an HSA-eligible plan but do not enroll in an HSA*

Receive Reward Dollars for completing certain wellness activities

Up to $500 for Self Only coverage

Up to $800 if you cover a spouse and/or child(ren)

No

No

Change your contribution amount without a qualifying change in status

Yes

No

No

Access your entire annual contribution amount starting on your first day of coverage

No

Yes

Yes

Access only funds that have been deposited

Yes

No

No

“Use it or lose it” at year-end

No

Yes

(Carry over up to $500)

Yes

(Carry over up to $500)

Money is always yours to keep

Yes

No

No

* If you do not enroll in an HSA, you will not be eligible to receive Reward Dollars after completing certain wellness activities.