High Deductible Health Plan with Health Savings Account (HDHP/HSA)

Good afternoon. This is Melanie Bridges with Inspira Financial. And today we're going to be going over Cornell University's health savings Account review. Part of the agenda today will be going over high level. What is an HSA. Some of the basics around an HSA.
Eligible expense items, contribution limits for the new year. Some savings strategies, HSA and Medicare, and then some additional investing and resource options available.
HSA Overview So what is it? An HSA is a tax free account for paying for eligible medical expenses. Contributions up to the IRS limit set each year are pretax through payroll benefits, triple tax free contributions through payroll earnings and distribution for qualified medical expenses are all pretax. They are used to pay for qualified medical expenses at any time, so there is no use it or lose it, and the option to save for the future and retirement is another benefit whose eligible individuals enrolled in an HSA eligible high deductible health plan and who's not eligible.
Just to highlight a couple, someone enrolled again in a non HSA eligible health plan, a medical care flexible spending account, or some sort of health reimbursement account. Anyone receiving a VA medical benefits and there are some exceptions to that. Anyone receiving Medicare or Tricare, anyone claimed as a dependent on someone else's tax return, and then with a spouse who contributes to a medical FSA at the same time, that would make you ineligible for contributing to an HSA.
So some of the basics around HSA use your HSA to pay for eligible medical expenses for yourself, your spouse, and your tax dependent children. You, your employer, Cornell, or others can contribute to your HSA up to the applicable IRS annual limit that set each year. Unlike an essay, your HSA belongs to you. It is your account. The balance rolls over each year and stays with you even if you change your jobs, retire, or switch into a different medical plan, you may transfer funds from another HSA to your inspire HSA, and once in a lifetime direct IRA to HSA transfer may be permitted, but it does count towards that year's annual contribution limit.
Your HSA balance can earn tax free interest, and it might be invested once you meet the applicable cash balance requirement, which is $1,000. Just some information around what is considered an eligible medical expense. Things like hospital doctor visit, out of pockets, prescriptions, dental, vision, and certain over-the-counter products are all considered eligible expenses. In addition, with the HSA, Medicare insurance premiums can be covered.
Cobra health insurance premiums health insurance premiums while receiving unemployment benefits such as state or federal, and qualified long term care insurance premiums.
So what are the IRS annual contribution limits? So for the program this year, in 2026, it was $4,400 for a single and $8,750 for a family in 2027. It is going up to $4,500 for a single or self coverage, and for family 9000 if you are 55 or over. You can put a catch up contribution of $1,000 extra into your account every year, and that has been the same for a number of years.
So it is $1,000 extra for anyone that's 55 or older. The employer contributions through Cornell remain at $1,000 individual and a thousand separately. If you're a family key reminder those employer contributions count towards your overall limit. So you want to factor that dollars you're getting from Cornell. When you are making your actual employee contribution decisions.
Some saving strategies for your HSA. So you want to treat your HSA if you can. Like an investment account, don't spend the funds unless needed. You know, specifically for medical expenses. Obviously, that isn't always something someone can do. However, it is a good savings strategy if you can. You want to max out your contributions by making the full annual contribution, including if you are 55 or older, that extra thousand dollars.
You obviously want to take full advantage of getting your Cornell HSA contributions, in addition to then adding your own to reach that maximum contribution. And then you want to invest your savings and think about your HSA like a 401 K or a 403 B type of a plan to pay for health care expenses in retirement.
Some sharper strategies for your HSA. If there's a big bill, maybe think and save on the taxes. Contribute to and pay large eligible medical bills using your HSA. Attacks. Independent adult child on a family health plan must open his or her own family. Limit HSA, optimize your tax savings and retirement planning by including that HSA in your dialogs, and then finally, leverage the auto invest feature to methodically invest over time.
And that is a feature available if you do choose the investment options under the program.
HSA and Medicare, you can't contribute to an HSA. Once you are enrolled in any part of Medicare, make your last contribution the month before your part. A coverage begins. However, in certain instances, coverage can apply retroactive up to six months, so timing matters. Below is a high level chart in which to kind of look at information. Determine when you should stop your HSA contributions.
But if you are coming up to a point where you're going to be considering Medicare, it's definitely something to be aware of and research a little further as you get into that Medicare decision. Key reminder if you enroll in Social Security at any time before you turn 65, you will automatically be enrolled in part A at 65, disqualifying you from your HSA contribution eligible after that.
Little bit about the investment option. Again, this is optional to you as an account holder, but you can benefit from a diversified non transaction fee mutual fund menu and no minimum purchases are required. So there are 30 option mutual fund choices under the program. They go from fully diversified options to those that are build your own both on a kind of passive managing fund basis, as well as a more aggressive managing fund basis.
Each quarter, we do publish the investment for as it relates to those 30 fund options. So you can always go back and look at how those, how those benefits have performed over the past year, as well as any additional information you may need in those specific fund options.
So how do you get started on the investment side? You can actually register online and open that investment account at any time. And account holder can do this even with a zero balance. The investment account dashboard displays when you open your account, and when you have that thousand dollar threshold, you're going to be able to go in and actually set up those investment options within your account.
If you go under the view investment options, again, it will give you a look at all of the different 30 fund menu choices, and you can get it in some very specific details around each of them.
Just a little bit about some resources and thoughts with your HSA account. Consider using a financial advisor and with that financial advisor, consult with them regarding your HSA on a regular basis, such as semiannually or annually. Really incorporate that into your overall, you know, financial portfolio. Every year you want to maybe develop long, short term and long term strategies for your contributions and your investments.
If that is something you want to get into, and you can adjust your HSA contributions and investments as needed. So during the year, if you did want to increase your contributions, you can do that. And at any as long as you're staying within the IRS, annual limits and investments could be something you joined during the year. Go in and out of, depending on your particular situation each year.
I want to thank you for your time today and have a wonderful day.

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Hello and welcome to the 2027 overview of the Cornell Health. Coverage is available to endowed faculty and staff.

There are changes to the Cornell Program for Healthy Living and High Deductible Health plans for 2027. For the CPA plan, the deductibles and out-of-pocket maximums for both in and out of network are increasing. Additionally, the co-pays are increasing from $20 to $25, and the high deductible health plans deductibles are increasing per IRS guidelines. Along with the health savings account, contribution limits are also increasing.

Now let's go over the endowed health plans.

Along with the plans being offered, here are some common insurance terms you may be familiar with. Accumulators refer to the plans deductible, coinsurance, and out-of-pocket maximums. Claims are a formal request to pay for medical services. You have received. Coordination of benefits or COB is the process of determining what insurance carrier pays first. When a member has more than one plan.

An explanation of benefits or EOB shows a breakdown of how Aetna has processed those claims. A participating providers a physician, hospital or healthcare facility that is contract with Aetna and has negotiated rates for services. Your plan year follows a normal calendar year of January 1st through December 31st.

Here are some common terms regarding cost sharing and payment. A deductible is the amount you pay before your plan begins to pay. Cost sharing once you met the deductible, you share the cost with the plan, either with coinsurance or a.

Health plans. Utilize the Aetna Choice POS two network. You can directly access any physician, hospital, or other health care provider worldwide, both in network and out of network for covered services and supplies. Under the plan, you'll pay less when seeking care through an Aetna participating network provider. If your current provider is not part of the Aetna network, you may be requested to pay up front and submit a claim for reimbursement to Aetna and that reimbursement is less than an internet provider.

You can contact Annette and Health Concierge to review your options, including inviting your provider to join the network or how to utilize your out-of-network benefits.

If you are registered for the Aetna member website. When searching for care, you have many options to choose from. You can connect with multiple different providers from the website, or if you are not registered, you can contact the Aetna Health Concierge and they will be happy to assist you.

All three plan options offer telehealth coverage. For the high deductible health plan, you will need to satisfy the deductible before the plan will start to share in the cost of services. The plans also offer virtual options through Teladoc, which provides 24 hour a day, seven days a week non-emergency care at an in-depth work level. Additionally, you can utilize Minute Clinic virtual care for non-emergency care at the end network level.

Both providers, along with telemedicine, allow you to access care that is convenient for your needs.

Cornell offers three virtual programs that are available through Aetna at no cost to you. They are available through your active Aetna medical plan with Cornell University for you and your enrolled dependance. Ages 18 and older. Scan the QR code on the screen to learn.

You also have access to a 24 hour nurse line. You can reach one of our nurses by calling them directly at 1-800-556-1555, or our concierge can get you connected as well. Additionally, this phone number is listed on your ID card. The nurse line is there to support you to be able to answer questions you have about health care decisions.

They do not diagnose or treat conditions, but can offer support with navigating the health care system.

Your Aetna member website or at the health app has multiple different resources at your fingertips. You can access a digital ID card at any time on the website or app, or request a replacement ID card to be mailed to your home address. You can track where you are at for your deductibles and out of pockets. You can search for network providers or facilities.

You can also request appointments with virtual providers. You may file or submit claims online. And finally, you have access to review your prior authorizations. Scan the QR code to download the Aetna Health app.

Aetna is here for you. You can reach your Aetna concierge by calling the number on your ID card, which is 1-877-371-2007, or by logging into your at a member website. Online, you can either chat or email with the concierge for assistance. Thank you so much for taking the time to review. The 2027 health coverage is available to both endowed faculty and staff.