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What is the Health Care Savings Plan (HCSP)? <br />i-;CSP is ar•. employer-sponsored program ~:ha~ allows vc.~ ro invest nonzv in a t~Y-free <br />account while you are zmployed'oy a Minnesota public _mciover. Once ~;ou have <br />employment, you may access ;-his money For ~~e_~_r!bursemenc o. eli ible heald~ care <br />expenses for you. your spouse and.egal depend.:nts =~, you. t<nov out-ot poclczt <br />medical expenses, including :nedical insu_ance ~;remiums, ~_an uic[dy _~.dd up to <br />~ho~~sands of dollars. Using the tax-Free dot[ars aa_um~lated ,ri your HCSP account <br />to reimburse these costs can provide a significant saviag~ ;r 70~- ind your Family. <br />HCSP zr a tax free account, which means contributions <br />and eligible reimbursements are not reportable on state <br />or federal income tax returns. <br />Fees <br />The annual administrative fee is 0.67 percent of your account balance. This Eee <br />is prorated and deducted monthly by MSRS From your account balance. For example, <br />if you have an account value of $10,000, MSRS will deduct $~. l2 per month from <br />your account. The maximum annual fee is $140 or $ L t.67 per month. Fees are subject <br />to change. <br />How are contributions made to HCSP? <br />The type and amount of contributions to HCSP are determined as Follows: <br />• If you are covered by a bargaining unit, contributions to the Plan must be agreed to <br />by both the bargaining unit and employer and written into the collective bargaining <br />agreement or Memorandum of Understanding (I~tOU). <br />• IEyou are not covered by a bargaining unit, contribution amounts must be agreed to <br />by your employer and included in a written personnel policy. <br />You cannot choose to contribute more money to your HCSP account on an individual <br />basis. Only negotiated and agreed upon contributions are allowed. <br />C C TI Health Car: Savie~g; Pi.u; <br />J 1 Our Taz-Free Solurion <br />7 <br />What are. eligible health <br />care expenses? <br />F~ligible expenses are those which are. <br />deductible for federal income tax purposes. <br />Some. of the mire commpn expenses <br />reimbursed b}, HC5P include: <br />• Premiums for medical, dental and <br />long-term care insurance <br />1bledicare Part B and D premiums. <br />• Insurance deductibles and co=pays <br />• I'rescription drug co-.pays <br />• Many over-.the-counter drugs: <br />lye care expenses <br />• Haring aids:and batteries <br />.For m~xe examples oEeligible health care <br />,~penscs; visitwwwtnsrsstate.mn.us, <br />Fr~r a Uomplete list ofeligible-expenses, <br />ceter to IRS Publication. 502 which can <br />be 1'uund arwww irs.gov. <br />Accessingyour account online <br />1q ft~ 1YISRSprocesses yorr• first <br />corrtnbution, yorr mill receive a letter:uith <br />your Personallrlenti, fzcation Number <br />~ pjl~l). Use your PIN to lug on to the <br />plltn website at wruw.msrs.state.mn.us. <br />Thefirst time yorr log on, you will be <br />promp1e~ to change your PIN. The <br />website allowsyourr to monitor your <br />inves~~tPerfo»nance, change your <br />investment allocation arrd transfer <br />rnaney betrveerr inrestnrent options. <br />