You can save money on eligible health care by paying for them with tax-advantaged accounts.

 

Overview

Mercury offers you the following accounts and encourages you to take full advantage of their money-saving potential. You can enroll in them on the UltiPro website as a new hire, during Open Enrollment, or if you have a qualifying life event. Note: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already participate.

2021 tax-advantaged accounts

Health Savings Account (HSA)

Administered by: HealthEquity

Available only to employees who enroll in the Cigna OAP $aver plan or Cigna OAP Super $aver plan.

Health Care Flexible Spending Account (FSA)

Administered by: PayFlex

Available to employees who enroll in the Kaiser Permanente HMO1, Kaiser Permanente Deductible HMO1, Cigna HMO1, Cigna HMO Select2,  Cigna OAP No Deductible3 or do not elect medical coverage through Mercury.

1 Available in California only  

2 Available in Southern California only  

3 Available outside California only

Key features at a glance
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  • Tax-free money. Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.
  • Convenient payroll deductions. Contribute to your accounts easily and effortlessly.
  • Helpful budgeting tool. Plan for upcoming expenses by setting aside money each paycheck.

* Contributions are not subject to federal tax. Exceptions include California and New Jersey, where you’ll pay state tax on HSA contributions, and New Hampshire and Tennessee where state taxes apply to tax dividend and interest earnings after a certain dollar amount. In New Jersey, FSA contributions are also subject to state tax. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA or FSA.

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Compare the accounts

HSA vs. FSAs

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Access your account
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Eligible expenses
How much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.

Without an HSA or FSA, Tom would pay … Savings
24% in federal income tax $480
5% in state income tax* $100
7.65% in payroll tax $153
His total tax savings for the year with an HSA or FSA $733

This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.

* Contributions are not subject to federal tax. Exceptions include California and New Jersey, where you’ll pay state tax on HSA contributions, and New Hampshire and Tennessee where state taxes apply to tax dividend and interest earnings after a certain dollar amount. In New Jersey, FSA contributions are also subject to state tax. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA or FSA.

 

Health Savings Account

With the Cigna OAP $aver plan and Cigna OAP Super $aver plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.

Get unbeatable advantages with an HSA

The HSA has a triple-tax advantage that beats even a 401(k) or Roth IRA. And, Mercury will contribute to your account, too!

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Put money in tax-free

You contribute to your HSA through pre-tax payroll deductions.

If you need to, you can change your contribution amount anytime.

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Get company contributions

Mercury will contribute $600 if you have team member-only medical plan coverage, $950 if you have team member + 1 medical plan coverage, or $1,200 if you have family medical plan coverage.

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Pay for care tax-free*

Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card (provided sufficient funds are in your account).

Track your spending, check your balance, reimburse yourself, and more on HealthEquity.

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Grow money for the future tax-free

All the money in your HSA is yours to keep, year after year.

You can build up savings through tax-free interest and even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead.

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2021 contribution limits

Keep in mind, the maximum amount you and Mercury can contribute to your HSA is determined by annual limits that the IRS sets. In 2021, the total contribution limits are:

  • $3,600 if you have team member-only medical plan coverage
  • $7,200 if you cover dependents.

Add $1,000 to these limits if you’re age 55 or older.

Who’s eligible for an HSA?

In order to establish and contribute to an HSA, you:

  • Must be enrolled in the Cigna OAP $aver plan, Cigna OAP Super $aver plan, or another qualified high-deductible medical plan.
  • Cannot simultaneously participate in the Health Care FSA
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.
  • Must be a U.S. resident
  • Cannot be a veteran who has received veterans’ benefits within the last three months
  • Cannot be active military

You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.

Getting started

To contribute to an HSA, you must be enrolled in the Cigna OAP $aver plan or Cigna OAP Super $aver plan. If you’re enrolled and haven’t opened your HSA yet, visit HealthEquity to open your account. If you’re not enrolled in the Cigna OAP $aver plan or Cigna OAP Super $aver plan, you may enroll during the next Open Enrollment period.

As you start using your account, keep in mind that you can only spend money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.

 

Flexible Spending Accounts

Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for health care and dependent care. Our FSAs are administered by PayFlex.

Use your money!

With FSA money, you “use it or lose it.” If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on PayFlex.

Health Care FSA

A Health Care FSA is available to employees who enroll in the Kaiser Permanente HMO1, Kaiser Permanente Deductible HMO1, Cigna HMO1, Cigna HMO Select2, or Cigna OAP No Deductible3 or who don’t elect medical coverage. You can contribute up to $2,750 for the year through pre-tax payroll deductions to help cover eligible medical, dental, and vision expenses.

Available in California only

Available in Southern California only

Available outside California only

How the Health Care FSA works
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Choose

Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes, so estimate carefully.

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Contribute

Your annual contribution will be divided into equal payroll deductions, but the entire amount is available to you from the beginning of the plan year.

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Spend

Spend your money by using your FSA debit card, or log in to PayFlex to request reimbursement for payments you’ve made.

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Use It Up

Unused money does not carry over at the end of each year — use it or lose it!

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Compare Accounts

  HSA Health Care FSA
Available with …
Cigna OAP $aver plan
Cigna OAP Super $aver plan
Kaiser Permanente HMO1
Kaiser Permanente Deductible HMO1
Cigna HMO1
Cigna HMO Select2
Cigna OAP No Deductible3
(Also available if you waive medical coverage)
Receive company contribution Yes No
Change your contribution amount anytime Yes No
Access your entire annual contribution amount as needed No Yes
Access only funds that have been deposited Yes No
Use account money for All eligible health care expenses All eligible health care expenses
“Use it or lose it” at year-end No Yes
Money is always yours to keep Yes No

Available in California only

Available in Southern California only

Available outside California only

Use your HSA/FSA tools

Visit your tax-advantaged account websites to manage your HSA or FSA accounts online, use calculators, and more.