Health Care’s Flexible, Affordable Answer
Saving for retirement is important, but many people don’t take into consideration the rising costs of health care. The MERS Health Care Savings Program (HCSP) is designed to help participants prepare for the costs of health care after they leave their employer, with an invested account they manage. It’s an employer-sponsored program providing a tax-free medical savings account for covering the costs of post-employment medical expenses.
The MERS Health Care Savings Program is not the same as a Health Savings Account, Flexible Spending Account, or a Health Reimbursement Account. It ensures the assets are used for future medical expenses only, including premiums for health insurance.
- No requirements for any specific type of health plan
- Available for use post-employment
How It Works
Step 1 – Employer and employee groups work together to design the contribution structure using three types of contributions:
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- Tax-Free Employer, Leave
- Conversion and Employee
- Mandatory
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Step 2 – Individual employee accounts are invested and grow tax-free.
Step 3 – Upon separation of employment, regardless of age, the account becomes available for tax-free medical expense reimbursement.
Contributions
The money you will eventually use in your account starts with what’s put into it — in the form of contributions. Your employer makes contributions to your account based on the provisions they’ve adopted. For more information regarding your plan provisions, contact your employer or MERS’ Service Center.
Learn more about contribution types in the HCSP Handbook.
MERS Investments
The MERS IRA is a participant-directed account, meaning you take an active role in determining your financial goals, making investment choices, and monitoring your portfolio. The decisions you make today will affect the results you see tomorrow.
Please remember, it’s always a good idea for you to review your investment options on a regular basis because investment objectives can change due to changes in your life circumstances, risk tolerances, or finances.
For more information, please read Understanding the MERS Investment Menu.
Eligibility
You can begin using the money in your MERS Health Care Savings Program account after you have a separation from employment, if collecting disability from a public pension plan, or on extended medical leave (six months or longer). Once we’re notified by your employer of your separation, you’ll receive information on how to begin receiving reimbursements from your account.
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We’re here to help
Our Service Center offers friendly, knowledgeable, over-the-phone assistance for a wide variety of benefit questions and issues. Contact the MERS team at Empower at 833.500.6377.
The MERS team at Empower is available:
• Weekdays: 8:00 a.m. to 10:00 p.m.
• Saturdays: 9:00 a.m. to 5:30 p.m.
• Automated system available 24/7
HCSP Handbook (pdf)
