Health Savings Accounts - jpmorgan.com Savings Accounts Employer User Guide (SG) ©2013 J.P. Morgan...

Health Savings Accounts Employer User Guide

Health Savings Accounts Employer User Guide (SG)

©2013 J.P. Morgan Treasury Services 2


Published by: J.P. Morgan

© 2011 J.P. Morgan Chase & Co. All rights reserved. J.P. Morgan Chase Bank, N.A. Customer FDIC

This document contains information that is confidential and the property of J.P. Morgan. It may not be copied, published or used, in whole or in part, for any purpose other than expressly authorized by J.P. Morgan.

Version 20110217



Table of Contents Introduction .................................................................................................................................................... 5

What Happens Next? ...................................................................................................................................... 6

Sample Timelines for Implementation ........................................................................................................... 8

Employee Enrollment ...................................................................................................................................... 9

Account Opening Process ............................................................................................................................. 10

Account Closures ................................................................................................................................... 10

Welcome Kit & Debit Card ........................................................................................................................ 11

HSA Contributions – Employer ...................................................................................................................... 12

Contribution Methods Used By Employers............................................................................................... 13

Employer Contributions ............................................................................................................................ 13

Funding Reserve Account via ACH Credit ............................................................................................. 13

Funding Reserve Account via Wire ....................................................................................................... 14

Direct ACH Credits to Employee HSAs .................................................................................................. 15

Funding Reserve Account via Paper Check: .......................................................................................... 16

Check and Paylist to HSAs ..................................................................................................................... 16

Allocation & Reconciliation of Funds ............................................................................................................ 17

Quick Funding ........................................................................................................................................... 17

Manual Funding ........................................................................................................................................ 18

Payroll/CSV Funding via the HSA Portal .................................................................................................... 18

Reconciliation of Funds ............................................................................................................................. 19

Employee Funding Options ........................................................................................................................... 20

Rollover or Transfer of HSA/IRA/MSA Funds into HSA ............................................................................. 20

Distributions from the HSA ........................................................................................................................... 21

Online Training for Employers ...................................................................................................................... 22

Online Training for Employees ...................................................................................................................... 22

Reporting for Employees .............................................................................................................................. 23

Reporting for Employers ............................................................................................................................... 24

Summary of Program/ “Petty” Reports (Reports 1-8) .............................................................................. 24

Summary of Reserve Account/ “Funding” Reports (Reports 9-11) .......................................................... 25

HSA Online Portal Services – Employer Website .......................................................................................... 26

HSA Web Site for Employees ........................................................................................................................ 27



Marketing to Employees ............................................................................................................................... 28

Additional Employer Resources .................................................................................................................... 29

Fees and Billing via Direct Debit.................................................................................................................... 30

HSA Service ................................................................................................................................................... 30

Customer Service Center .......................................................................................................................... 30

Client Service Unit (CSU) ........................................................................................................................... 31

Best Practices for Increasing HSA Enrollment ............................................................................................... 32

Frequently Asked Questions ......................................................................................................................... 33

Appendix A – Account Status Definitions ..................................................................................................... 35

Appendix B – Technology Considerations ..................................................................................................... 36



Introduction Thank you for considering J.P. Morgan Chase Bank, N.A. as the preferred administrator for your Health Savings Account (HSA) program. We are pleased to provide the HSA Program for your company and its employees, and we look forward to working with you to establish a successful program. This guide is intended to help accomplish that goal.

Key Advantages of the J.P. Morgan HSA Program for your Company Optimizes Your Benefits Program — You can reduce healthcare costs and lower FICA tax liability while

providing competitive benefits to your employees Provides Flexibility – We offer multiple ways to fund accounts – providing you with the flexibility you

need to manage your program Program Management – We provide you with the tool and reporting to help effectively manage your

HSA program Key Advantages of the JPMorgan Chase HSA Program for your Employees Provides a versatile savings vehicle for employees — Offers tools for employees to finance current

medical expenses and generate wealth for future healthcare and potential retirement needs Easy-to-Use Solution — Provides access to funds, via a simple swipe of a debit card, in an interest-

bearing account that may be integrated with an investment account Investment Capabilities — Offers employees a diverse range of mutual funds through an innovative

and flexible HSA investment service Strength of a Trusted Leader — Ensures the dedicated support and strength that only a solid financial

institution can provide

JPMorgan Chase HSA Features FDIC-insured, interest-bearing cash account with competitive interest rate and low fees Visa®-branded debit card for use at thousands of ATMs and millions of point-of-sale locations,

including pharmacies, doctors’ offices and hospitals Flexible funding options for employees and employers User-friendly employee Web site provides secure online access to balance information and

transaction history Diverse range of mutual fund choices in the HSA investment account Integration of the investment account with the cash account, providing seamless online

administration and next-business-day transfers between accounts No trading fee for online mutual fund trades Access to the Chase HSA Calculator Suite (planning tools) Dedicated customer service Monday-Friday 8am-8pm ET Required tax forms filed with the IRS and mailed to account holders annually



What Happens Next? The following is a high-level overview of the HSA implementation process.

1. Employer Website Registration: Download Program Information (see Figure 1 & 2): After you login to HSA Online Portal Services website, download and save your Program Information document, which includes details on the following:

a. Client numbers for the Employer (how we identify you) b. HSA Reserve Account numbers c. Training Information for Employers d. Employer-specific Employee enrollment details e. Details on where to get Employee educational pieces

Contract & Setup Form

Final (completed)

Registration Email Sent

to Employer

Program Infortmation

& Training

Enroll Employees

Fund Accounts

J.P. Morgan HSA Implementation Process

Figure 1: Register for Online Portal Services and Download the Program Information Document



2. Employer Training: Set aside 30-60 minutes to review the Employer training module. Available via the website (or www.jpmorgan.com/hsadocuments) , this training will provide a detailed overview of how to administer an HSA program for your employees. If you’d prefer to attend a live training session (via Webinar/Conference Call) please contact the HSA Client Service Unit to schedule an appointment.

3. Educate Employees:

a. Employers can download HSA employee education materials at www.jpmorgan.com/hsamarketing. Links to the marketing library are also posted on the Employer website.

4. Employee Enrollment:

In order for employees to have HSAs associated with your program they must use the exact details provided in the Program Information document. Please distribute the following to ensure the program is setup correctly:

a. The exact website address/ URL listed (case sensitive) b. The “HSA Enrollment ID” and “Verification Code”

Accounts are established at Chase once identification is verified. Welcome kits are sent with debit card and other program information directly to account holders.

5. Fund Accounts: a. As needed, funds are sent to J.P. Morgan and credited to HSAs (via payroll deductions and

any direct employer contributions) b. Employees can also fund accounts directly with Chase via EFT or by check at any time

The remainder of this guide will focus on the steps above in greater detail.

Figure 1: Sample Program Information Document

http://www.jpmorgan.com/hsadocuments�

http://www.jpmorgan.com/hsamarketing�



Sample Timelines for Implementation Implementation timeframes can vary between clients. Below is a sample.

Key Responsibilities for Employers

Finalize group setup information (as needed) Provide educational materials to employees Coordinate employee benefits enrollment Determine funding process and transmit funds and information to Chase Determine the amount of contributions (if any) to make to employees’ HSAs



Employee Enrollment The HSA process for your employees begins when they elect the high deductible health plan (HDHP) coverage offered by your firm and select the option of opening an HSA. With J.P. Morgan hosted Online Enrollment, your involvement is minimal.

The Program Information document included key information needed for employee HSA enrollment, including:

1. A unique URL/Web site address to the enrollment Web site

2. The HSA Enrollment ID and Verification Code to ensure employees’ enrollments are linked to your company in our system

It is the responsibility of your company to communicate the exact Web site information and applicable Enrollment ID and Verification Code to prospective account holders.

Employees can contact Chase HSA Customer Service with any questions about the online enrollment experience. To provide employees with a paper application, please contact the Client Service Unit (additional fees may apply).



Account Opening Process

USA PATRIOT Act and Customer Identification Process (CIP) The information collected during the enrollment process will be used to comply with the requirements of the “Customer Identification Process” (CIP) Chase uses to comply with the federal USA PATRIOT Act.

If the applicant’s supplied name, date of birth, social security number, and address cannot be verified in a national database, Chase will request additional documentation to explain the discrepancy.

Information requested typically includes items such as the following: copy of current driver’s license, copy of utility bill or passport. Failure to respond to requests for additional information will result in account closure.

Note: Accounts that are still out of compliance (e.g. in PendOpen CIP) after 60 days will be closed.

Timing of Account Opening If your employee meets the eligibility requirements for an HSA, he/she may establish an HSA by completing online enrollment. The HSA is established on our system as of the date we approve the employee for the HSA. However, for tax and legal purposes, the employee's HSA may not be effective until the required HDHP insurance coverage is effective, and in some states, not until funds are deposited in the HSA. Tracking of the HSA opening date for tax and legal purposes is solely the responsibility of each HSA account holder.

Employees should be encouraged to open the HSA and make an initial deposit as soon as possible because only those expenses incurred on or after the HSA is opened are eligible to be paid or reimbursed from the HSA.

Note: IRS regulations state HSA funds cannot be used to pay medical expenses incurred prior to the HSA open date.

Employee Terminations – Free Agent Process Upon notification by the account holder or authorized Company contact, Chase can remove an account holder from your program and transfer the employee’s HSA into a stand-alone status unaffiliated with your program. Depending on your program, this transition can occur because of an employee termination or because the employee is no longer covered under an HDHP.

Account Closures When account holders call to request account closure, the Service Representative will:

• Check whether the caller has an HSA investment account • If so, we advise the account holder to liquidate their HSA investments and request that they close

their investment account • Provide the caller with the Account Closure Request form to complete and return after all

outstanding HSA checks have cleared, any scheduled online bill payments have been paid, and any investments have been sold

• Outstanding balances associated with the HSA line of credit will remain the obligation of the account holder



Upon receipt of the signed Account Closure Request form, Chase can begin the account closure process (typically 10 business days). Once the account is officially closed, a check for the account balance will be sent to the account holder or new custodian, as directed.

Welcome Kit & Debit Card Once Chase opens an HSA for your employee on our system, we will send the account holder a Chase HSA Welcome Kit along with a Chase HSA debit card. Also included in the Welcome Kit are materials that outline the program, reinforce the benefits of an HSA, and answer frequently asked questions.

If the enrollment has been received and the employee’s identity has been verified in advance of the HDHP effective date, then HSA debit card(s) and the Welcome Kit are sent 10 days prior to the expected HSA opening date.



HSA Contributions – Employer An HSA may be funded by anyone, including the employee and his/her employer. Although there are multiple methods for funding the accounts, Chase offers two basic models for Employers to fund (or facilitate funding to) HSAs:

Method 1: Contributions from an external account directly to the individual HSA

Method 2: Reserve Account to Employee HSAs - Aggregate funding to a Chase “Reserve Account” assigned to the Employer. You can then allocate funds from the Reserve account into individual HSAs using multiple tools we will review in the next section.



Contribution Methods Used By Employers The chart below outlines the options for employers who facilitate the funding of HSAs. Included are the turnaround times to post funds and the tools/processes available to clients to make sure funds are allocated to the correct account. Detailed overviews of each funding and allocation method are provided on the pages that follow.

Contribution Method

Brief Description Tools for Funding Employee

HSAs

Timing of

Transfer Comments

Direct ACH Credit to Reserve Account

Employer sends one ACH to reserve account assigned to program. Employer can then allocate funds to individual HSAs

• Quick Funding • Manual Funding • CSV file upload

2-3 banking days

Popular method for Employer funding

Wire Funding to Reserve Account

Employer sends one Wire to reserve account assigned to program. Employer can then allocate funds to individual HSAs


2-3 banking days

Popular method for Employer funding

Direct ACH Credit to HSA

Employer sends individual ACH contributions directly to each Employee HSAs

• Account Number Report via Portal

2-3 banking days

Less efficient, also less reporting available

Paper Check to Reserve Account

Employer sends one check to reserve account assigned to program. Employer can then allocate funds to individual HSAs


4-5 banking days

Additional fees may apply

Check and Paylist to HSAs

Employer sends paper check and spreadsheet in the mail to Chase. Chase moves funds directly into Employee HSAs as indicated on Paylist.

• Account Number Report via Portal

4-5 banking days

Additional fees may apply

Employer Contributions Employers who contribute or facilitate employee contributions can:

• Contribute directly to the employee’s account via ACH or Check. • Contribute to the Employer Reserve Account via ACH, Wire or Check and allocate funds using one or

more of the methods described in the ALLOCATION & RECONCILIATION OF FUNDS section.

Funding Reserve Account via ACH Credit This method utilizes the Automated Clearing House (ACH) Network for electronic clearing of funds between banks and is the one-to-many method that permits you to send the funds for multiple employee HSAs via a single ACH credit to the Reserve Account.



Employers can work with their bank to “push” funds to J.P. Morgan, or you can also use the HSA Online Portal Services to initiate / “pull” these funds. To establish the online process, contact the Client Service Team who will help certify your account for online usage.

Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section):

• Quick Funding, Manual Funding via the portal or Payroll/CSV Funding

Funds are posted and available to account holders within 4 hours of processing the instruction file (unless you specify that funds should post on a future date).

ACH Instructions Employers funding their Reserve Account will need to provide the bank with the information below.

• Routing Number = #021000021 • Reserve Account Number = (begins with 397XXXXXXXXX)

Transactions sent via ACH should assume JPMC is an ‘external’ bank regardless if the source account is also with J.P. Morgan or Chase.

Funding Reserve Account via Wire Clients who fund the Reserve Account via Wire will need to complete 2 steps as part of the funding process. All necessary information will be provided in the Program Information Document.

Step 1: Work with your bank to send funds to J.P. Morgan – instructions below J.P. Morgan

Step 2: Notify the J.P. Morgan Client Service Team of the Wire (copy and paste Part 1 and 2 below into e-mail to [email protected])

Part 1: Wire Remittance Memo

Date: XX/XX/XXXX

To: Chase HSA CSU

Fax #: 866-399-7779

e-Mail Address: [email protected]

Client Name: XXXXXXXXXXXX

Client 800 Acct. #: 800XXXXXXXXXX

Part 2: Wire Instructions

Credit Bank: JPMorgan Chase Bank, N.A.

ABA/Routing #: 021000021

Credit Account Number: 304685011 Credit Account Name: [Client Name]

Beneficiary Reference: 397XXXXXXXXX

Wire Transfer Details: From [Client Name] for credit to Reserve Account 397XXXXXXXXX

Amount: XXXXXXXXXXXXXXX

mailto:[email protected]�



Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section):

• Quick Funding via the portal

• Manual Funding via the portal

• Payroll/CSV Funding via the portal Additional Wire Details To help assure wire transfers for credit to HSAs at Chase are received with sufficient information to allow timely posting, please work with your financial institution to create a Predefined or Preformatted Funds Transfer that contains the following information or meets the following requirements:

• The Reserve account to be credited with the funds being transmitted by wire transfer must be included with the funds transfer instructions. The Reserve account information must appear in the first 12 spaces of the Beneficiary Reference Field. In addition, the wire transfer details section must contain the name of the company sending the funds.

o Beneficiary Reference: (Number of the Reserve Account to be credited) o Wire Transfer Details: From (Employer Name) for credit to (Reserve Account)

Funds transfers received that do not contain the information in these fields might experience delays in posting or be returned. Bank will have no liability with respect to any such delays.

Direct ACH Credits to Employee HSAs This method utilizes the Automated Clearing House (ACH) Network for electronic clearing of funds between banks, and is similar to the way that you process direct payroll deposits.

Direct ACH transmission is widely accepted in the banking industry and once set up, is easy to administer and use. You must work with your originating bank to provide the PPD ACH transmission information in the correct format.

This method allows you to send contributions directly into the HSA of the employee and does not require a Reserve (or “funding”) account.

Employers funding direct to Employees’ accounts will need to provide the bank with the information below.

• Routing Number = #021000021

• HSA Account Number = (begins with 397XXXXXXXXX)

Advantages of Direct ACH Credit

• No Excel templates required.

• New Account Report (Employer Report) posted daily to the employer portal for account status to ensure accounts are active/open and that funds are accepted.

Considerations for Direct ACH Credit

• Per-transaction charges from your bank may apply to this funding method.

• Chase cannot distinguish source of funding (EE vs. ER contribution).



If you presently have direct deposit of payroll, you will need to complete the following steps (possibly with assistance from your bank):

1. Contact the company or your internal department that handles your payroll direct deposit; request that they prepare and submit a NACHA file to initiate the ACH deposit into HSAs;

2. Provide the HSA account numbers for each participant to the company or internal department handling the payroll direct deposit;

a. Account numbers provided via the New Account Report – available daily at the employer portal

3. Submit a “pre-note” transaction for each account; receive and review the traces regarding each submission

4. Upon successful pre-note, proceed with deposits into the accounts. Please note that your company account will be debited and the individual’s HSA will be credited for the amount of each transaction. In addition, your financial institution may impose a service fee for this processing.

Funding Reserve Account via Paper Check: Employers can send a paper check to fund their Reserve Account. Paper Checks should reference the Employer’s 397XXXXXX Reserve Account number and be sent to the following address:

Chase HSA Operations PO Box 30223 Tampa, Florida 33633-1461 Once funds post to the Reserve Account, you have several options for moving funds into the individual Employee HSAs. Allocation Options via the Employer website (additional details provided in next section):

• Quick Funding

• Manual Funding via the portal

• Payroll/CSV Funding

Check and Paylist to HSAs Employers can send Chase a paper check with a Paylist to the Chase HSA lockbox for processing contributions into Employee HSAs. Please contact the Client Service Team for a copy of the Paylist template. Once completed, the check/Paylist should be sent to the following address:

Chase DTE HSA 24101 Network Place Chicago, IL 60673

Please Note: Additional fees may apply for Check/Paylist funding



Allocation & Reconciliation of Funds Companies who first send funds to the Reserve Account can then use 3 online methods to transfer contributions to the Employee HSAs. All methods require access to the Online Portal Services website (assigned to program administrators during setup process).

1. Quick Funding via the portal 2. Manual Funding via the portal 3. Payroll/CSV Funding via the portal Regardless of the allocation method, the HSA Reserve Account balance must always be equal to or exceed the allocation amount from the methods above to prevent rejections for insufficient balance.

Quick Funding Via the Online Portal Services Website, Employers can easily transfer funds from the Reserve Account to the Employee HSAs with just a few clicks. This is the most popular allocation method for most programs with less than 200 accounts.

Key Features of “Quick Funding”

• Presents full roster of enrolled employees

• Facilitates recurring contributions (stores previous contribution amounts)

Funds posted to Employee HSAs within 30 minutes, unless a future funding date is specified.

Considerations for “Quick Funding”

• Sources of funds limited to Employee, Employer Limited to funding

• Limited to programs with up to 300 accounts



Manual Funding Employers can transfer funds from the Reserve Account to the Employee’s HSA manually, by entering specific account information into an online spreadsheet. Please see the Bulk Funds Transfer Guide in the HSA Document Library for step-by-step instructions.

Key Features of “Manual Funding”

• Web-based method of funding – similar to filling out a blank spreadsheet.

• Good method for ad hoc or 1-off funding

• Ability to classify transactions using full set of source codes

Funds posted to Employee HSAs within 30 minutes, unless a future funding date is specified.

Considerations for “Manual Funding”

• For groups with more than 5 accounts, using the Quick Funding or Payroll/CSV method may be more productive than re-entering contribution information each pay cycle

Payroll/CSV Funding The Payroll CSV method of funding is a simple way, without any technology development, for an employer to provide numerous funding instructions to Chase for employee contributions to HS As.

Key Features of “Payroll/CSV Funding”

• Data can easily be copied from any database program into a CSV file

• Data from previously saved files can be copied and pasted into a new CSV file to save time when only minor changes are needed.

• Chase provides a template with the required fields presented as a header at the top of each column

• This file can be uploaded into the HSA Employer Portal by a client user with appropriate access.

• The system checks the reserve account available balance against the total of all credits in the file. If sufficient funds are not available, the file will fail.

Considerations for “Manual Funding”

• CSV Funding can used be for programs with up to 2,000 HSAs. If you have more than 2,000 accounts please either fund your accounts in groups of less than 2,000, or contact the Client Service Unit for additional options.

Employer HSA Reserve Account at Chase

Employer Bank Account/Payroll Deductions

CSV Funding via Employer Portal

Wire

ACH

HSA Contribution(s) Complete



Please see the Payroll/CSV User Guide in the HSA Document Library for step-by-step instructions on how to populate and upload a CSV file.

Reconciliation of Funds Chase offers numerous tools for your company to reconcile the Reserve account. These include reports Accessible via the HSA Online Portal - see ‘Reporting’ section of this document for more information.

• Daily report detailing all completed funding transactions

• Daily Reports detailing all previously pended transactions which have been completed or cancelled



Employee Funding Options Employees who want to send HSA contributions directly to Chase have 2 options:

Option 1: Send a check and deposit slip to Chase to the address provided. Funds post 4 to 5 days after receipt of deposit slip. Deposit slips are provided in the welcome kit and can also be requested by calling Customer Service.

Option 2: Authorize a one-time or recurring Electronic Funds Transfer (EFT) from the Accountholder Website. Account holders can complete this request during enrollment or access the website to establish at any time. For one-time transfers, funds post 2 to 3 business days from receiving the form. For recurring EFT's, account holders can direct the date the EFT is performed each month.

Option 3: Direct ACH – Employees can initiate an ACH transaction to fund their HSA from another bank account. Funds are generally posted in 48 hours from time of receipt. They will need to provide the bank with the information below.

• Routing Number = #021000021 • Account Number = 12 digits, beginning with 397

Rollover or Transfer of HSA/IRA/MSA Funds into HSA

Some HSA account holders may already have other HSAs, Medical Savings Accounts (MSAs) or an Individual Retirement Account (IRA). Funds in an existing HSA, MSA or IRA may be rolled over or transferred to another open HSA.

If the account holder chooses to roll over funds to their new Chase HSA, Customer Service can provide a rollover request form, or one can be accessed online. Account holders may complete a HSA/MSA Rollover Request form and provide it to their current MSA or HSA custodian, instructing them to transfer funds to the Chase HSA. Account holders can also complete a separate IRA Rollover Request form and provide it to their current administrator, instructing them to transfer funds to the Chase HSA

If the account holder has already received the funds from the former custodian, then s/he can complete the rollover request form and send it, along with a check for the rollover funds, directly to Chase.



Distributions from the HSA From the first time employees use their account, they are assured safe and convenient access to their HSA funds. Chase offers account holders multiple options for accessing HSA funds. Please note that fees may apply to some of these transaction types; see your fee schedule for complete details.

HSA Debit Card:

• Acceptance at millions of physicians’ offices, hospitals and other merchants that honor Visa® debit cards

• Access to more than 900,000 ATMs, including surcharge-free access at over 14,000 Chase ATMs nationwide

• Cash back option at point-of-sale

Direct Deposit Transfers

• Electronic transfers from the HSA to the employees personal checking or savings Account can be setup on the secure website.

Online Bill Pay:

• Similar to standard online banking, J.P. Morgan gives employees the ability to schedule payments online via the Bill Pay functionality. Account holders can make a one-time payment or establish recurring payments as needed.

Optional HSA Checkbook:

• Account holders can request a traditional checkbook to access funds in their account. They can request the checkbook as part of the enrollment process or by calling customer service. Applicants will be asked to complete a signature card (sent by J.P. Morgan), and must pass a check history screening prior to receiving the checkbook



Online Training for Employers Once you’ve received the Program Information document, you can also access the online Training Module. Set aside 30-60 minutes to review the training module. Available via the website (or www.jpmorgan.com/hsadocuments , this training will provide a detailed overview of how to administer an HSA program for your employees. If you’d prefer to attend a live training session (via Webinar/Conference Call) please contact the HSA Client Service Unit to schedule an appointment.

Live Training is also available and will generally be held on the second and fourth Tuesday of each month, from 1:00 to 2:30 p.m. Eastern Time. Clients are invited to dial into a shared conference line to join the training discussion.

Training Topics include:

• HSA Program Overview • Enrollment for Employees • Sending funds to the HSA Reserve Account • Funding using the Quick Funding, Manual or Payroll/CSV • How to access HSA Reports • Managing Your HSA Program

Please contact CSU to schedule your attendance for a particular date and request training materials. Training materials, including a PowerPoint presentation, will be provided in advance via email. To make the most of your training session, be sure to complete the assigned pre-reading. To schedule training for your program administrators, please contact the Client Service Unit at 877.290.9405

Online Training for Employees Employees have multiple options for learning about HSAs. The most common ways employees are educated include:

• Employer distributes materials from the HSA Marketing Resource Center (www.jpmorgan.com/hsamarketing)

• Employees access the HSA Education Center at www.Chase.com/HSA

• Employees attend a J.P. Morgan hosted HSA 101 Webinar (conducted monthly); includes opportunities to ‘ask the experts’.



http://www.chase.com/HSA�



Reporting for Employees Chase provides a standard set of report to account holders.

Monthly Statement

• Monthly account activity and balance information • Default delivery is via the cardholder Web site (mailing of paper statements is optional and may

be subject to fees)

Annual 1099-SA Tax Form

• This form is used to report distributions from the HSA. • Distributions include ATM withdrawals, debit card purchases, HSA checks paid and online bill

payments from the HSA. • 1099-SA forms are mailed to account holders in January. • Chase reports 1099-SA totals to the Internal Revenue Service. • Account fees charged by Chase are not distributions. • Excess contributions and earnings on Excess Contributions are included and reported • Chase makes no determination if reported distributions are used for qualified medical expenses

as directed by the IRS. • If there have been no account distributions in the previous year, no 1099-SA form is sent.

Annual 5498-SA Tax Form

• This form reports contributions to the HSA. • It also reports the Fair Market Value (FMV) as of Dec. 31st of the tax year. • 5498-SA forms are mailed to account holders in January • Contributions can be made until April 15th of the next tax year. As a result, corrected statements

will be mailed in May to those account holders who made contributions or changes between January and April.

• Interest is not a contribution. Interest posted is, however, included in the FMV. • Incoming rollovers or trustee-to-trustee transfers are not reported as contributions.

Year-End Statement (YES)

• This provides a summary of all activity for the prior calendar year. The Year End statements will be made available to account holders around the mid February timeline. The statements will be made available online to all accountholders and if an account holder is set to receive paper it will be mailed out at that time as well.



Reporting for Employers Chase will set up the designated administrators at your company with a suite of reports to help monitor and manage the HSA program. These reports are designed to provide you with the necessary information for funding employee accounts as well as overall program management.

Reporting note: At the Report Search screen, you may select a client account on which to view reports.

For reporting related to Employee HSAs, you can access the “Petty” account for detailed information.

For reporting related to reserve account activity, select the “Funding Report” section on the portal.

Summary of Program/ “Petty” Reports (Reports 1-8) No. Report Name Description Freq. Type

1 Program Summary report

The Program Summary report is being presented to you to allow a clear understanding of key statistics regarding your HSA program and to assist you making the program a success.

Monthly Summary

Info

2 Accounts/ Cards by Status

This report provides summary level information on the number of account by status (e.g. open, pend open, etc).

Monthly Volumes

3

Account Number File/ New Accounts

This report provides new HSA account numbers to employers solely to facilitate funding when needed.

Daily, Weekly, Monthly

Funding

4 Closed Accounts

This report provides details on those accounts that have closed (either due to CIP failure, employee termination, roll-out, or other). This report can be used to prevent funding errors.

Monthly Funding

5 Balance Reconciliation

This report provides details of the starting balance and ending balance for the client’s program. The report provides information on deposits, withdrawals and interest as well as other transfers such as investment transfers.

Monthly Program Statistics

6 Investment Asset Summary

This report shows the beginning balance in each mutual fund and the ending balance for the period. It also lists the total number of investment accounts, number of trades and the total investment balance.

Quarterly Investment Assets by

Fund

7 Investor Summary

This report provides information on the number of investors in different cash balance ranges. The report also includes information on the total number of investment accounts for the period.

Quarterly Cash Balance

Averages

8 Withdrawal Summary

This report provides summary level information on transactions at the merchant category code level. Information is only provided for ‘top’ MCCs.

Monthly Activity by

MCC



Summary of Reserve Account/ “Funding” Reports (Reports 9-11)

No. Report Name Description Freq. Type

9

Funding Reserve Account Detail

This report provides details on funding activities initiated from the Reserve account on this date, and shows completed rejected or pending statuses.

Daily Funding

10

Funding Reserve Account Detail - Cancellations

This report lists pending funding transactions that were cancelled during the reporting period. These funds are no longer “on hold” in the Reserve account.

Daily

Funding

11

Funding Reserve Account Detail – Completions

This report lists pending funding transactions that were completed during the reporting period. It includes reasons such as Account Open (if after scheduled Open Date), Funding Date met, etc. These funds are no longer “on hold” in the Reserve account, as they have posted to the cardholder accounts.

Daily Funding



HSA Online Portal Services – Employer Website During the initial implementation of your HSA program, the primary employer contact provided J.P. Morgan the names of individuals who will have access to HSA Online Portal Services to facilitate finding of employee HSAs and to view reports for the program (see previous section for a complete list of available reports)

Program Administrators will receive an email from [email protected] instructing them to register for the portal. Once a user has been set up, the specific tools that can be accessed are:

Program Information document: The key document containing important HSA program information specific to your company.

Access to Online EFT for Funding Reserve Accounts: Allows users to transfer money from external accounts to the HSA Reserve Account assigned to your company.

Funding allocation methods including access to Quick Funding , Manual Funding, and Payroll/CSV Funding

Real-Time Reserve Account Balance and Transaction Activity: Provides balance information and transaction history of the reserve account assigned to the program. Monthly statements for the Reserve Account are also made available.

Program (“Petty”) Reports: Administrators can access a suite of reports via the Portal including account number reports used for funding, confirmation reports, and more.

Reserve Account (“Funding”) Reports: Administrators can access a suite of reports via the Portal including funding transaction history and balance information




HSA Web Site for Employees Our primary educational web site at www.chase.com/hsa is updated regularly and provides access to a comprehensive set of information and tools to your employees, so they get the most from the HSA program.

The secure cardholder Web site facilitates self-service for activities such as checking the available balance,

• Review account info such as address, phone #, account #, and email address

• View transaction history (“online statements”)

• Make an online bill pay

• Set up an EFT to fund the HSA from another bank account

• Designate or change their beneficiary

• Utilize the HSA Medical Expense Tracker

• Learn about investments

• If cash account balance is >=$2,000, open an HSA investment account

• Manage investments: transfer funds/make trades/set elections/view history

• Learn about and apply for HealthCare Line of Credit

Figure 2: Educational Website

Figure 3: Secure Accountholder Website

http://www.chase.com/hsa�



Marketing to Employees Chase will provide you with the marketing and communications support you need to increase employee adoption and maximize the benefit of offering the Chase HSA. Our integrated marketing program includes online and printed materials that will effectively introduce the HSA to your employees, as well as encourage them to activate their cards and use their accounts.

To access Chase HSA marketing materials for employees, you can visit our Web site at www.jpmorgan.com/hsamarketing.

This site is for Employer use only. Please do not distribute to Employees.

Core marketing materials and support options include:

Pre-enrollment posters Overview brochure Frequently Asked Questions Snapshot of Qualified Medical Expenses Investment Brochure Inserts/Payroll buck slips Customizable template emails and newsletter copy for your company’s use Educational video for your employees to view online Ongoing communications from Chase to encourage usage and provide updates on regulatory issues And more!

NOTE: Marketing materials are provided in .PDF format for easy viewing and download.




Additional Employer Resources J.P. Morgan has also provided access to a Document & Training Center where you can get trained on the HSA Program, download helpful User Guides (such as this document), as well as download forms that your employees may need.

Access the Document & Training Center at: www.jpmorgan.com/hsadocuments




Fees and Billing via Direct Debit The Chase HSA has standard monthly fees included in the program. These fees are billed and debited monthly as indicated during client setup, unless otherwise directed.

• Chase will send a debit advice via mail on or about the 10th of the month to the billing contact • Chase will debit the account provided to us on or about the 25th of each month. • Employer-paid fees will be debited via an Automated Clearing House (ACH) transaction. • The ACH Company ID that will appear on the transaction is 9522467002.

Authorization to allow this entry is provided in your implementation/set-up package.

Fees pertaining to the individual participant accounts are detailed during enrollment, and copies can be accessed via the secure accountholder website or by calling customer service.

Please refer to the HSA Setup Package Agreement for details regarding the fees associated with your program.

Account Set Up and Account Maintenance Fees are assessed two months after an account has been established on our system. This is to allow sufficient time for the account to be processed through CIP and be funded. For example, accounts created in January will be assessed applicable charges in February and those charges will appear on your invoice delivered in March.

Questions regarding invoices should be directed to the Client Service Unit (CSU) for resolution.

HSA Service

Customer Service Center Our Operations team has several avenues through which account holder service issues are handled. The first and most efficient method is through Customer Service. The initial call comes into the call center and we strive for one-call, one-contact resolution. Barring that, we are committed to providing an estimated resolution timeframe. In the event that the call requires escalation, the caller would be transferred to the Supervisor or Manager to handle. If for some reason the Supervisor or Manager is unable to resolve the issue, a trouble ticket would be created and forwarded to our Client Services Unit. The Client Services Unit has a team of tenured employees who would work on the tickets through completion. Once the ticket is completed, the information is supplied back to the Customer Service Supervisor or Manager and a call is placed back to the originator of the call.

The Chase HSA Customer Service Center is open to receive account holder calls from 8:00 a.m. to 8:00 p.m. Eastern Time on business days at 866-566-7101.

We also provide a 24 X 7 Interactive Voice Response (IVR) system for participants to:

Activate their HSA debit card Obtain balance and transaction history Change their debit card’s PIN Transfer to a live agent for lost/stolen cards



Client Service Unit (CSU) Chase has a dedicated staff to serve the needs of our clients. This team serves our employer clients and will work closely with the operations team to address and resolve all client issues.

Questions can come directly to the dedicated Client Services Unit via a toll-free number or email, and the representative opens a ticket with the information received. The requestor receives a ticket number and the estimated timeframe in which the issue is expected to be resolved. Once the ticket has been resolved, CSU management may make a follow-up phone call to the employer in conjunction with an email notification of the outcome.

These Chase HSA contacts are available to support your HSA needs.

Client Service Unit

Phone: 877-290-9405

Email: [email protected]

Secure Fax: 866-399-7779

Hours: 8 a.m. to 8 p.m. Eastern Time, business days



Best Practices for Increasing HSA Enrollment Enrollment into CDH plans may be critical to reducing your company’s healthcare expenses and encouraging healthier employees. Since 2004, Chase has compiled a list of best practices as a reference to assist you in meeting your enrollment objectives.

For more information, please access www.jpmorgan.com/HSA to download our White Paper on Best Practices for Implementing an HSA Program.

Plan Designs - Create an attractive plan design

Structure the plan so that it doesn’t scare people away (maximum deductible and maximum out-of-pocket limits are key decisions, along with differences in premiums)

Front load additional preventive medical benefits at 100% coverage Consider offering multiple qualified HDHPs (Higher & Lower deductibles – both qualified) Contribute enough to the HSA so that people will take note (lump sum or matching

contributions) Disrupt the status quo by changing last year’s options Consider expanding wellness and disease management initiatives Consider incentives for consumerist behavior

Marketing - Communicate early and often via different channels

Utilize the Chase HSA Adoption Kit to educate your employees over several months prior to open enrollment and through a variety of channels, including face-to-face meetings, webinars for employees in distant locations, posters, etc.

Highlight the benefits of the investment functionality (diverse range of mutual fund choices in the HSA investment account)

Demonstrate senior management commitment to CDH Recognize that there will be concerns and questions. Encourage employees to visit the Chase HSA Web site at www.Chase.com/HSA to learn more

about the program and the benefits of an HSA Provide links to the Chase HSA Calculator Suite to help employees see the benefits of the HSA Consider sending benefits materials to the spouses of the employees

Enrollment - Use an “Active” enrollment approach; default shouldn’t be “same as last year”

Motivate employees to review and reconsider the prior year’s selections Provide details on employee premiums amounts before enrollment fairs to allow employees to

see savings between HDHP and traditional options Encourage employees to review previous year claims activity (provide health plan links, etc) Executive and HR acceptance is critical to the success of CDHC implementation at any

organization. Make sure that your executive leaders are familiar with CDHC and its benefits and are capable of helping employees with their questions.

http://www.jpmorgan.com/HSA�

http://www.chase.com/HSA�



Frequently Asked Questions How will I know the enrollment for my employees has been processed? Employers have access to account status reporting and lists of newly enrolled employees’ account numbers at the HSA Online Portal.

How can my employees track their account balance and activity? Your employees can access information about their HSA cash account and investment account through the secure cardholder Web site at ChaseHSA.com or by using the Interactive Voice Response system on our toll-free Customer Service phone number. What happens if my employee terminates their employment? Employers should notify Chase via an email message to the Client Service Unit when an Employee leaves the company, so the individual can be removed from your program.

Since the employee will still have an HSA with Chase, we will set up a new account, transfer HSA balances into this new account, and issue the employee a new card. This new card (and information included with it) will provide the employee with a new toll-free customer service number. The employee will continue to have access to their HSA balance and can continue to maintain the HSA under this new structure using the funds until they are gone.

How do my employees roll their MSA or HSA from another bank into their HSA with JPMorgan Chase? Your employee may access a rollover form by downloading it from the Web site or by calling Customer Service at the number on the back of their debit card. After completing the Trustee-to-Trustee Transfer section of the form, they can send it to their current MSA/HSA custodian; the form will serve as instructions to transfer the MSA or HSA funds into their new Chase HSA. What other fees and/or penalties are my employees responsible for? Your employee may be responsible for additional fees. Any fees that your employee is responsible for are identified in the Disclosure Statement for their Chase HSA. How can my employee close his/her account? If your employee is enrolled in the Chase HSA, the account closing process requires written instructions from your him/her -- the account holder -- designating where the balance of funds in his/her HSA should be transferred.

Once our specialists receive the instructions, they will close the account. After waiting ten days to allow for any possible remaining transactions to post to the account, a check will be cut and mailed either to your employee or to his/her new HSA trustee, as per their written instructions. Please allow 7-10 days for this to arrive through the mail. Also, note if the HSA funds are not deposited into another health savings account, tax penalties will occur. Your employee should consult a tax advisor for details. What tools are available to help educate employees and encourage adoption? JPMC provided you access to a comprehensive pre-launch website that includes marketing and communication tools to help educate both you and your employees on the HSA. We’ve made available .pdf copies of materials such as poster templates, buck slip templates, e-mail/newsletter content,



brochures and FAQs for you to print or distribute. An educational video is accessible to your employees online, to explain the benefits of HSAs. Additionally, we will share industry “best practices” to help you achieve successful adoption of the HSA, and work with you to help you maximize the benefit of offering the Chase HSA. When are the HSA debit cards sent? Will they be received on the plan start date? How do I ensure that funds are in the account on the plan start date? Welcome kits and debit cards will be mailed as soon as possible, or 10 days prior to the expected account opening date (which is based on the HDHP effective date). Funding instructions submitted online can schedule funds to post on a specific date.

How do I receive their employee account numbers for funding? The New Account report, accessible at the Employer Portal, provides employees’ account numbers. Alternatively, you may choose to identify employees in your funding file or online funding based on their Social Security Numbers.

Can we send all of the welcome kits with debit cards to the employer’s address? No, HSA welcome kits will be mailed to each individual account holder. Can I pay for some of the fees? Yes, client billing requirements will be established as part of the implementation process How is an address update processed? Address changes for active employee account holders should be completed by the employee by contacting Customer Service.

How do employees open an HSA Investment Account? Once an account holder has reached a $2,000 balance in their HSA cash account, a new button appears in the “Learn About Investments” screens at the cardholder Web site. Account holders can click the button to open the Investment Account directly online.



Appendix A – Account Status Definitions Status Definition Triggered when… Status changed when… Functionality Allowed

PendOpen The account may open in the future.

• Enrollment data received • Transition from another

account is currently in process

Both • Future HDHP effective

date is reached And

• Verification of identity is complete (or sufficient)

• Account maintenance, CIP screening, pend funding, card activation (cards mailed when CIP = Pass) and account closure.

• Deposits held in the Reserve Account until the HSA opens.

Open Active account. HDHP effective date passed and identity has been verified.

N/A • All functions

Suspended

Account has been temporarily disabled. Note: minimum suspend is 24 hours

• Fraudulent activity Cardholder request

• Negative Balance (over $10 after 15 days; under $10 after 120 days)

• Cardholder request Positive balance

• Positive outcome of fraud review

• Negative balance results in closure (60 days after 1st negative balance letter sent)

• Cardholder requests a negative balance waiver until year end

• Access to account info only. • Clients can fund HSA, but cardholder

cannot access funds • All applicable fees can be charged

Close Active or CLOSE_ATV

A request has been made for the account to be transitioned to a new program.

When a transition/close request is initiated by a client or JPMC.

When transition end date reached (@ 30 days) EE notified of impact to their current HSA and advised of fee changes. The current HSA closes after this period and the new HSA will open

• All transactions/funding allowed. NOTE: cards cannot be activated and checks cannot be ordered

Close Pend or Close_PND

Status will be in effect for the 10 days prior to account closing via accountholder request (non-transition) - allows transactions to settle before close

An accountholder closure request has been received and initiated.

Status stays in effect for 10 days while outstanding transactions settle; then account is automatically closed.

Transaction settlement only

Close Purge or CLOSE_PRGE

Status for account which fails CIP or was opened in error

• Pend Open account doesn’t pass CIP in 60 days

• Account opened in error/requested to be closed

This is a final status None

Closed Account has been fully closed

• See above • After 10 days of being in

the Close Pend status This is a final status

Accountholder no longer has access to account/can’t receive contributions. Web access to portal for 18 mos.



Appendix B – Technology Considerations

Email Requirements: You will need to be able to receive multiple emails from the Chase HSA team to set up and communicate information about your HSA program. These emails are sent in a zipped and encrypted (128-bit) archive. Your email system must be able to receive this type of file.

Please note that you should also add the following emails/domains to your "safe list" so HSA communications are not rejected/discarded as spam:

• [email protected] • [email protected]

Software Requirements: When working with Chase for your HSA Program, please be advised of the following technical considerations:

1. Website Browser: The HSA website runs best with Internet Explorer version 5.5 or higher.



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