BlueEdge allows your clients to give their employees a spending account option, which helps employees pay for qualified health care expenses. One option is to establish a health savings account (HSA), which can be set up with employer funds, employee funds, or both.
The BlueEdge HSA plan is compatible with health savings accounts, which are funds that your clients' employees can use to pay for qualified health care expenses.
Here's how an HSA works:
- The account can be funded by the employer, the employee, or both, but the account is owned by the employee. (There is a maximum amount that can be contributed annually.)
- Funds in an HSA are completely portable so if an employee changes jobs or stops working, the funds remain with him/her.
- There are no "use it or lose it" rules like there are with flexible spending accounts – unspent money stays in the HSA from year to year.
- A separate trustee administers the HSA (not Blue Cross and Blue Shield of New Mexico).
- HSA funds can be invested in interest bearing accounts.
- Employer contributions are not subject to FICA taxes and employee contributions are tax deductible. Amounts distributed from the account are not taxable as long as they are used to pay for qualified health care expenses.
Deductible:
BlueEdge includes an annual deductible that employees must meet before their PPO benefits begin. Claims paid from the spending accounts are applied toward the plan deductible.
Here's how the family deductible works:
The family deductible is an aggregate deductible. The entire deductible amount must be satisfied before PPO benefits begin for any family member. Once the family deductible is met, PPO benefits will be paid for the whole family. Deductible amounts are included in the out-of-pocket maximum.
Learn More About BlueEdge HSA for Groups:
Overview
Product Summary
Benefit Information
FAQs
Prospective Producers: To apply to become a contracted producer, see our Instructions, Agreement, and Business Associate Addendum (BAA).
