Issue 17

In addition to COBRA and retiree billing, we also offer a robust suite of spending accounts!

Which UPMC Consumer Advantage spending account(s) is right for your organization?

Offering spending accounts to your employees can be an effective way to help contain health costs for both your business and your employees.

With the UPMC Consumer Advantage spending account portfolio, groups of all sizes have many options. The chart below will help you compare the different spending account options available to your organization:

Key Feature	FSA	QTA	HSA	HRA
Who owns the account?	Employer	Employer	Employee	Employer
Who can contribute to it?	Employee and employer	Employee	Employee, employer, family (any third party)	Employer
Can account move with employee?	No	No	Yes	No
Can funds roll over year to year?	Yes, if elected, up to $550 that must be used the following year	Determined by the employer	Yes	Determined by employer
Are funds restricted to qualified health care expenses?	Depending on account opened, funds can pay for qualified health care expenses and dependent care expenses	Restricted to qualified transportation expenses	No, but penalties may apply	Yes
Who ensures expenses are qualified?	Employee	Employee	Employee	Employer
Are there investment earnings available?	No	No	Yes, via interest-bearing checking account or mutual funds	No
What are the tax advantages?	Contributions to the account are pretax.	Contributions to the account are pretax.	Contributions, account interest, and dollars spent are all tax-free.	Reimbursements may be tax-free if used for qualified medical expenses.
Who is eligible to maintain an account?	An employee whose employer offers an FSA option	An employee whose employer offers a QTA option	Individuals may establish accounts if they are covered by a QHDHP	An employee whose employer offers an HRA

All of the spending accounts come with a variety of user-friendly and smart-benefit perks:

• Stacked account Visa debit card
• Electronic enrollment via UPMC Health Plan
• Claim submission/processing
• Monthly participation/contribution reports
• Member/Employer website
• Dedicated Member Services team
• Member mobile app

Did someone say limits? The IRS has recently announced that the health care FSA maximum contribution for 2021 will remain at $2,750 and the transportation (or sometimes known as commuter benefit) monthly maximum will remain the same at $270.

Some other important notes on FSA limits:

• FSA limits were established with the enactment of the Affordable Care Act and are set to be indexed for inflation each year.
• The $2,750 limit for 2021 applies on a per FSA account basis. If you have an FSA and switch jobs midyear, regardless of claims incurred, you can elect the full $2,750 in an FSA at your new employer.
• The FSA limit is the same for those participating in the health plan as single as it is for those participating as family.
• If two spouses each have access to their own FSA through their own employer, they could each elect the maximum of $2,750 for a combined household set-aside of $5,500.
• The FSA limit does not include rollovers. If an employer offers a rollover of up to $550, someone could have an FSA with $3,300 in it next year.
• Limits apply only to pretax employee contributions. Employers may contribute to an FSA in excess of the employee contribution max of $2,750.
• The $550 FSA rollover limit for 2020-2021 was increased by $50 earlier this year in a notice from the IRS.

2021 health savings account (HSA) contribution limits announced by the IRS:
$3,600 for an individual and $7,200 for family.

Interested in adding a UPMC Consumer Advantage spending account option or have questions about your existing spending account offerings?

Your UPMC Health Plan account manager can discuss ways to incorporate these spending accounts into your company’s benefit options that suit your employees’ needs.