Skip Navigation
Tuesday, July 29, 2014

The flexible, affordable answer to rising health care costs

It’s no secret the cost of health care keeps rising, even faster than the rate of inflation.
MERS Health Care Savings Program is an innovative way to help employees prepare for those rising health care costs, with a tax-free medical savings account for use after leaving employment.

How It Works

Individual employee accounts are invested in MERS investment funds and grow tax-free. After leaving employment, the vested account balance is available for tax-free reimbursement of IRS-approved medical expenses, for the employee, any eligible dependents, and even a beneficiary on a taxable basis. The program can be used alone, or to complement an existing health care plan.

Features & Benefits

The MERS Health Care Savings Program is a great benefit employers can offer employees, and a great way to help employees prepare for future health care costs:

Features of the Health Care Savings Program for Employers Features of the Health Care Savings Program for Participants
  • Tax-free contributions are exempt from FICA (7.65%)
  • MERS administers the entire plan
  • No charges or fees for employers
  • Access to MERS investment funds
  • Ability to name beneficiaries
  • Use of mySourceCard® debit card for eligible participants

Qualified Medical Expenses

They are those specified in the plan that would generally qualify for the medical and dental expenses deduction. These are explained in Publication 502, Medical and Dental Expenses. However, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deduction, they do qualify as expenses for Health Care Savings Program purposes.

Note: After 2010, non-prescription medicines (other than insulin) do not qualify as an expense for Health Care Savings Program purposes.

Qualified medical expenses from your Health Care Savings Program include the following.

  • Amounts paid for health insurance premiums
  • Amounts paid for long-term care coverage
  • Amounts that are not covered under another health plan

What is a reimbursable health care expense? View Publication 502

Plan Document

Investments

View HCSP asset allocation, investment menus, and more. Click here.

 

Need Help Finding the Right Retirement Fit?

MERS Regional Team members can help you find affordable answers to your benefit budget. Contact a MERS representative in your area at 800.767.2308,
or click here.


MERS YouTube Videos MERS RSS

Disclaimer
The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information?s accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).