HEALTH SAVINGS ACCOUNT (HSA)
FREQUENTLY ASKED QUESTIONS

(If you have additional HSA questions, contact HealthEquity.)

  1. What is a Health Savings Account (HSA)?
    A Health Savings Account (HSA) is a tax-advantaged savings tool that provides triple tax savings:
         - Contributions to your HSA can be made with pre-tax dollars through payroll deductions, which reduces your taxable income. Any after-tax contributions that you make to your HSA are also tax-deductible on your tax filing at the end of the year.*
         - Interest and investment earnings on HSA funds grow tax-free.
         - Withdrawals from the HSA are also tax-free when used to pay for qualified healthcare expenses.

    You can contribute to your HSA, and your employer can also contribute to your HSA (this is called “seed money”).

    HSA contributions are exempt from federal income taxes but may be subject to state taxation in some states. Visit HealthEquity.com/Caterpillar or contact HealthEquity for more information.

  2. Who is the HSA vendor?
    HealthEquity is Caterpillar’s designated HSA vendor. HealthEquity can be reached at 844-311-9732 or memberservices@healthequity.com. Visit HealthEquity.com/Caterpillar for more information.

  3. Can I contribute to an HSA if I sign up for the EPO or PPO plan options?
    No. To be eligible to contribute to an HSA, you must be enrolled in what the IRS considers a “high deductible health plan,” which is a health plan with a deductible that meets IRS requirements. The BCBS National EPO and UHC Choice Plus PPO plan options do not meet IRS high deductible requirements and cannot be partnered with an HSA.

  4. Who is eligible for an HSA?
    To be eligible to make or receive contributions to an HSA, you must meet eligibility requirements:
         - You must be covered by a high deductible health plan (HDHP). Caterpillar’s CDHP options qualify as HDHPs.
         - You must not have other health coverage, such as coverage under a traditional health plan, Medicare or TRICARE.
         - You or your spouse must not have a general purpose health FSA (also known as a full purpose FSA).
         - You must not be claimed as a dependent on someone else’s tax return. If you are married, you are not considered a tax dependent of your spouse for this purpose.
         - You must not have received VA Benefits in the previous 3 months. Contact HealthEquity Member Services at 844-311-9732 for additional information on your specific situation.

    For additional details, see Internal Revenue Service (IRS) Publication 969: https://www.irs.gov/pub/irs-pdf/p969.pdf

  5. Are there contribution limits for the HSA?
    Yes, the IRS sets HSA contribution limits each year. The 2019 limits are:
         - $3,500 for individuals enrolled in Employee Only coverage ($3,450 in 2018)
         - $7,000 for individuals enrolled in Employee + Spouse coverage ($6,900 in 2018)
         - $7,000 for individuals enrolled in Employee + Child(ren) coverage ($6,900 in 2018)
         - $7,000 for individuals enrolled in Employee + Family coverage ($6,900 in 2018)
         - Individuals age 55 and older may contribute an additional $1,000 per year in catch-up contributions.

    Please note: All contribution limits listed above include any seed money your employer contributes to your HSA. If you and your spouse are both eligible to contribute to your own individual HSAs, your combined HSA contribution for the year cannot exceed the maximum family contribution limit. This applies whether or not your spouse also works at Caterpillar.

  6. Is there a cap on how much I can accumulate in my HSA?
    No. There are annual limits on HSA contributions, but there is no limit on the total amount you can accumulate in your HSA. Your HSA can continue to grow as you make contributions, earn interest and receive investment earnings.

  7. How much will Caterpillar contribute to my HSA in 2019?
    UHC Consumer Choice option:
         - If you enroll in employee-only coverage, Caterpillar will deposit $300 in your HSA.
         - If you enroll in any other coverage tier, Caterpillar will deposit $600 in your HSA.

    UHC Consumer Max option:
         - If you enroll in employee-only coverage, Caterpillar will deposit $550 in your HSA.
         - If you enroll in any other coverage tier, Caterpillar will deposit $1,100 in your HSA.

    If an individual is not enrolled as an employee or retiree in one of the CDHP options under a Caterpillar healthcare plan, or is not eligible to contribute to an HSA, Caterpillar will no longer make a contribution to that individual’s HSA. Note that you have to open and maintain an HSA through Caterpillar’s designated HSA vendor (HealthEquity) to receive company contributions to your HSA.

  8. Is the Caterpillar seed money one-time only or annual?
    At this time, Caterpillar intends to fund the HSA annually; however, please note the amount of seed money will be reviewed annually and subject to change or discontinuation.

  9. When will Caterpillar deposit the seed money into employees’ HSAs?
    Caterpillar will deposit the seed money into HSA accounts in the first weeks of January, as soon as administratively possible.

  10. Is there a minimum contribution I must make in order to receive the Caterpillar seed money?
    No, there is no contribution or match requirement. If you enroll in a CDHP option and establish your HSA with Caterpillar’s designated HSA vendor (HealthEquity), you will automatically receive the full Caterpillar seed amount you qualify for.

  11. How can I contribute to my HSA?
    Pre-tax payroll deduction will be available for active employees. You can elect your goal amount during the annual enrollment process. The goal amount you elect will be equally divided over the number of pay periods you will experience in the plan year, and that amount will be taken out of each pay check as a pre-tax deduction. (For instructions on how to change your elected payroll contribution amount, click here.)

    You may also make post-tax contributions to your HSA, and then claim those contributions on your yearly tax filing.

  12. How do I pay for healthcare expenses from an HSA?
    There are three ways you can pay qualified medical expenses from your HSA:
         - You will receive a debit card with your Welcome Kit after you open your HSA. You can use the debit card to pay the expense.
         - You can pay providers through HealthEquity’s online bill pay via the HealthEquity website.
         - You can pay the expense out-of-pocket and then reimburse yourself from your HSA.

  13. What is considered a “qualified healthcare expense”?
    The IRS maintains the list of eligible expenses in IRS Publication 502. You can find it at:
         - https://www.irs.gov/pub/irs-pdf/p502.pdf (printable PDF version)
         - https://www.irs.gov/publications/p502/ (interactive online version)

  14. Can I use HSA funds to pay for dental and vision expenses?
    Yes, you can use the funds in your HSA to pay for eligible medical, dental and vision expenses. You can find the most current list of eligible expenses at: https://www.irs.gov/pub/irs-pdf/p502.pdf

  15. What happens if I use HSA funds for non-qualified expenses?
    You will have to pay income taxes and an additional 20% tax penalty on HSA funds you withdraw for non-qualified expenses. However, if you are disabled or age 65 or older, the additional 20% tax penalty won’t apply. See IRS Publication 969 for details: https://www.irs.gov/pub/irs-pdf/p969.pdf

  16. If I enroll in one of the CDHP options, how will my prescription drug expenses be applied to the deductibles or maximum out-of-pocket (MOOP) amounts?
    When your pharmacy processes your prescription drug claim, the amount you pay will be applied to your deductible and MOOP amounts. If you utilize network pharmacies, you will pay the price Caterpillar has negotiated with that pharmacy for that prescription drug. Visit Benefits.cat.com to view the Network Pharmacy Directory.

    Some prescription drugs are considered preventive, and you will pay the applicable copay or coinsurance for these drugs from the beginning of the year. Visit benefits.cat.com to view the CDHP Preventive Drug List.

  17. If I have a large claim at the beginning of the year before I’ve built up my account, how do I pay for it?
    You can pay the claim with any other form of payment, and then reimburse yourself from the HSA when you have enough funds available in the account.

  18. What happens to the HSA money if I haven’t used it and I switch to a non-CDHP plan option the following year?
    Once money is put into your HSA (either by you or by Caterpillar), that money belongs to you. It will remain in your HSA account and can still be used for qualified medical expenses. However, you will no longer qualify to contribute to the HSA, and Caterpillar will no longer pay the associated administrative fee or make an employer contribution of seed money. You will become responsible for any administrative fees associated with the HSA.

  19. How does an HSA differ from the Health Care FSA?
    For an HSA:
         - HSA funds are yours forever. You keep the funds even if you switch healthcare plans, leave the company or retire. All of your unused HSA funds remain in your account.
         - HSA funds must be in your account before you can withdraw them to pay for qualified medical expenses.
         - HSA contribution limits are different from the FSA contribution limit.

    For a health care FSA:
         - You must be actively working for the company to enroll in a health care FSA.
         - If you contribute more to the FSA than you actually use in the year, any funds over $500 will be lost. If you do not re-enroll in a health care FSA, you will lose all of the funds. You may roll over a maximum of $500 to the next plan year as long as you re-enroll in a health care FSA for that plan year.
         - With an FSA, the funds are not required to be in your account before a qualified medical expense can be reimbursed.
         - The FSA contribution limit is different from the HSA contribution limits.

  20. Do I have to keep receipts for the HSA?
    You should keep your receipts in the event you are audited by the IRS. HealthEquity provides a tool through its member portal that allows you to upload and store receipts. Contact HealthEquity for further information.

  21. My spouse is covered by a high deductible health plan through his/her employer and has an existing HSA. I intend to enroll in one of the CDHP options available under the Caterpillar healthcare plan and open an HSA with the designated vendor. Can my spouse roll over his HSA funds into my HSA?
    No, your spouse cannot roll over his/her HSA funds into your HSA. HSAs are individually owned accounts. If you and your spouse are both eligible to contribute to your own individual HSAs, your combined HSA contribution for the year cannot exceed the maximum family contribution limit.

  22. Is there a certain amount you must have in your HSA before you can invest? What is the investment process?
    There is a $1,000 threshold required before you may begin investing your HSA funds. As soon as you get more than $1,000 in your HSA, you may begin investing any funds over the $1,000 threshold. Contact HealthEquity for details.

  23. Are there fees for maintaining an HSA?
    Yes, but the HSA administration fees will be paid by Caterpillar as long as you are employed by Caterpillar and participating in a CDHP.

  24. I currently have funds in an existing HSA. Can I roll over those funds into the HSA I open with Caterpillar’s designated HSA vendor?
    Yes, you can. After you open your HSA with HealthEquity, contact HealthEquity member services for further information.

  25. Can I use my HSA funds for my children’s or spouse’s healthcare expenses, even if they’re not covered under my healthcare plan?
    You can use your HSA funds for qualified medical expenses of anyone who is considered your tax dependent. For specific IRS rules, see IRS Publication 969: https://www.irs.gov/pub/irs-pdf/p969.pdf

  26. Where can I find detailed information on the tax rules, eligibility guidelines, etc. for HSAs?
    For specific IRS rules regarding HSAs, consult IRS Publication 969: https://www.irs.gov/pub/irs-pdf/p969.pdf

  27. What happens to the funds in my HSA if I die?
    You may designate a beneficiary for your HSA at any time once your HSA is established. Please complete this as soon as possible. Contact HealthEquity for assistance.

  28. What company-sponsored tax savings vehicles can I access if I select the Blue Cross Blue Shield National (EPO) or UHC Choice Plus (PPO) plan options?
    If you select the BCBS National or UHC Choice Plus plan options, you are eligible to enroll in the general purpose Health Care Flexible Spending Account. You are not eligible to contribute to an HSA.

  29. Can I have both an HSA and a Health Care FSA?
    You will not qualify to contribute to an HSA if you or your spouse has a general purpose health care FSA. However, you are allowed to have an HSA and a limited purpose FSA at the same time. A limited purpose FSA can be used only for eligible vision and dental expenses. If you enroll in a CDHP option, the annual enrollment process will offer you the opportunity to enroll in the Limited Purpose FSA.

  30. If I have money left over in my Health Care FSA at the end of the year, but I sign up for a CDHP w/ HSA plan option, what happens to my leftover Health Care FSA funds?
    If you enroll in a CDHP option, the annual enrollment process will offer you the opportunity to enroll in the Limited Purpose FSA. Your remaining current year Health Care FSA funds (up to a maximum of $500) can be carried over into the Limited Purpose FSA as long as you choose to enroll in the Limited Purpose FSA and elect a minimum contribution amount of $75. You cannot roll any leftover FSA funds into an HSA.