• About Personal Funding Accounts

    You may qualify for, or your employer may offer a personal funding account. There are different types of personal funding accounts that allow you to use pre-tax funds to pay for certain healthcare costs.

    Learn more about personal funding accounts.

  • Health Savings Account (HSA)

    An HSA is a bank account that you can own, set up, manage, fund, and invest. It lets you set aside funds to pay for your healthcare on a tax-free basis and is made to work with an HSA-qualified high deductible health plan. Before you can open an HSA bank account, you must first be covered by a qualified high-deductible health plan.

    What are the benefits of an HSA? 

    • You are not taxed when you deposit funds or withdraw money for qualified healthcare expenses
    • Unused funds rollover from year to year and may grow tax-deferred
    • You can save your HSA funds for retirement or the future to pay for qualified healthcare expenses

    If you use your HSA to pay for an ineligible expense, you may be required to pay income and penalty taxes. 

    UMB Bank and your HSA

    We offer banking through UMB Bank n.a., a member of the (Federal Deposit Insurance Corporation) FDIC. Founded in 1913 and an industry leader in financial healthcare accounts since 1997, UMB Bank is one of the largest independent banks in America. To open and use your HSA with UMB Bank: 

    1. Complete the HSA enrollment form and mail to Premera.(We need this form to connect your account with UMB bank. You cannot set up an account directly with UMB).
    2. Next you’ll get an email from us with links to help you set up and manage your online account
    3. UMB Bank will send you a complete welcome packet

    Your UMB bank account offers:

    • No monthly service fees
    • A Visa Debit healthcare payment card
    • Online account access—a secure and convenient way to track and manage your HSA

    (You may set up your HSA account with your bank, however it will not be connected with your claims activity online.)

    Manage Your Health Savings Account Online 

    This material is not intended to be tax or legal advice. The reader should consult with his or her own tax advisor to determine the tax implications of purchasing the products discussed herein.

    Advice, if any, included in this material was not intended or written by Premera to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

    Flexible Spending Account (FSA)

    A Flexible Spending Account (FSA) is a funding account that is offered by some employers. You can use the funds in this account to pay for qualified medical or dependent care expenses on a tax-free basis. At the beginning of each plan year you decide how much money to contribute. You can contribute up to the maximum dollar amount allowed by the IRS. You can then access these funds throughout the year. There are 2 types of FSAs:

    Healthcare FSA

    A healthcare FSA can cover medical, dental or vision expenses that you would otherwise pay for out of pocket, such as:

    • Health plan deductibles, coinsurance or copayments
    • Hospital charges and lab fees
    • Prescription drugs

    Your employer may limit the expenses your plan reimburses. Please contact your Human Resources office for more information.

    Dependent Care FSA

    Your employer may also choose to offer a dependent care FSA. You can use the funds in this account to pay for the costs of taking care of dependents. Typical expenses under this account include:

    • Charges for state licensed day care
    • Pre-school
    • State licensed elder care (unless it is for medical care)

    Expenses must be for dependents under the age of 13, or those physically or mentally incapable of caring for themselves.

    What are the benefits of an FSA? 

    • You are not taxed when you deposit funds or withdraw money for qualified healthcare expenses
    • Your contributions are automatically withdrawn from each paycheck. No hassles

    An FSA is an easy way to pay for healthcare expenses 

    • Use your healthcare payment card to pay for eligible expenses at approved merchants and providers that accept debit cards
    • If you don’t pay with your healthcare payment card, you can submit a claim with receipts online and get reimbursed by check or direct deposit

    Manage Your Flexible Spending Account Online 

    This material is not intended to be tax or legal advice. The reader should consult with his or her own tax advisor to determine the tax implications of purchasing the products discussed herein.

    Advice, if any, included in this material was not intended or written by Premera to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

    Health Reimbursement Account (HRA)

    A Health Reimbursement Arrangement (HRA) is an account funded by your employer. You can use the funds in this account to help pay for your healthcare on a tax-free basis. Only your employer can contribute to your HRA. You use this money to pay for any qualified healthcare expense incurred by you or your dependents.

    There are different types of HRAs. Each type of HRA covers a different set of eligible healthcare expenses which may include:

    • Health plan deductibles, coinsurance or copayments
    • Vision care services
    • Dental care services
    • Hospital charges
    • Laboratory fees
    • Prescriptions
    • Certain over-the-counter items

    Please contact your Human Resources office to learn more about your HRA and the healthcare expenses it covers.

    What are the benefits of an HRA? 

    • Your employer funds the HRA. You can use the money in your account to help cover part of your out-of-pocket healthcare spending
    • You do not pay taxes on the money your employer puts into your account
    • You can withdraw money from this account, tax-free for qualified healthcare expenses
    • The funds in your HRA are not considered income. Therefore, they are not subject to income tax, Federal Insurance Contributions Act (FICA) or worker’s compensation deductions

    An HRA is an easy way to pay for healthcare expenses 

    • When you pay using your own out-of-pocket funds, you can easily create your claim online. Once you submit your receipts, you will be reimbursed by check or direct deposit.
    • If your HRA allows, you can use the healthcare payment card to pay for eligible expenses at approved merchants and providers that accept debit cards.

    Manage Your Health Reimbursement Account Online 

    This material is not intended to be tax or legal advice. The reader should consult with his or her own tax advisor to determine the tax implications of purchasing the products discussed herein.

    Advice, if any, included in this material was not intended or written by Premera to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.