Overview

Save money by paying for eligible health care and dependent care expenses with savings and spending accounts. Chubb offers you several types of accounts through Mercer that lower your taxes.

2019 accounts

  • Health Savings Account (HSA): Available only to employees who enroll in the $1,850 or $2,850 Deductible Plans.
  • Flexible Spending Accounts (FSAs):
    • Health Care FSA: Available to employees who do not enroll in an HSA, or do not elect medical coverage through Chubb.
    • Limited Purpose FSA: Available to employees who are enrolled in the HSA.
    • Dependent Care FSA: Available to all employees.

Key features

  • Tax-free money – Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.
  • One debit card – Use your Mercer Marketplace debit card to spend your HSA, FSA, and TRIP money, or log in to your account to request reimbursement.
  • Convenient paycheck deductions – Contribute to your accounts easily.

Note: You must enroll in these accounts on the Chubb Benefits Marketplace each Annual Enrollment if you want to contribute the next year, even if you currently participate. Also, if you are currently enrolled in the Health Care FSA or Limited Purpose FSA and you want to roll over up to $500 to spend next year, you must re-enroll in the FSA for next year to receive your rollover dollars.

*Contributions are not subject to federal tax. However, they are currently subject to state tax in AL, CA, and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.

How much could you save?

Take a look at this example to see how much contributing to an HSA or FSA could save you.

Tax-advantaged accounts make a difference!

See how much contributing to an HSA or FSA could save you over the course of a year.

Tax savings on $2,000 contribution to HSA or FSA
24% in federal income tax $480
5% in state income tax $100
7.65% in payroll tax $153
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.

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Access all your tax-free accounts

To manage your HSA, FSA, and TRIP benefits, log in to your Mercer account.

Health Savings Account

With the $1,850 Deductible Plan or $2,850 Deductible Plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Mercer. 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 triple tax advantages with an HSA

Put money in tax-free.
  • Contribute to your HSA through before-tax paycheck deductions (up to IRS annual limits).
  • Change your contribution amount anytime.
With the $1,850 Deductible Plan, you also get company contributions!
Pay for care tax-free.*
Grow money for the future tax-free.
  • All the money in your HSA is yours to keep; year-end balances roll over year after year.
  • Build up savings to pay for future health care expenses. You can even invest your money once it reaches a balance of $1,000, which gives you the potential for tax-free earnings growth and a simple way to save for health care costs in retirement.

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65

Prorated company HSA contribution for new hires

If you are a newly hired employee enrolling in the $1,850 Deductible Plan with HSA, you’ll receive a company contribution based on:

  • When you become eligible – this is the first of the month following your HSA enrollment
  • The date of Chubb’s next quarterly HSA contribution

Example:

You are hired in May. That same month, you enroll in employee-only coverage under the $1,850 Deductible Plan along with the HSA. Your HSA effective date will be June 1, and Chubb will make a $125 contribution to your HSA in July and October.

Contribution limits

The IRS sets annual limits on the total amount of money that can be contributed to your HSA. In 2019, the limits on contributions (from both you and Chubb) are:

  • $3,500 for employee-only coverage
  • $7,000 if you cover dependents

Add $1,000 to these limits if you’re age 55 or older, or if you will be turning age 55 this year.

iconWho's eligible for an HSA?

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

  • Must be enrolled in the $1,850 or $2,850 Deductible Plan.
  • Cannot simultaneously participate in the Health Care FSA (but participation in a Limited Purpose FSA is allowed) in a single tax year.
  • 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.
  • Cannot be enrolled in TRICARE or any other medical plan that is not HSA-compatible.

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. 

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.

Health Care FSA

Available to employees who do not enroll in an HSA, or do not elect Chubb medical coverage

Contribute up to $2,700 for the year through before-tax paycheck deductions to help cover eligible medical, prescription, dental, and vision expenses.

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Choose

Pick a contribution amount when you enroll. You may only change it during the year if you experience a qualifying life event, so estimate carefully.

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Contribute

Your annual contribution will be divided into equal paycheck 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 your Mercer account to request reimbursement for payments you’ve made.

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Use It Up

Up to $500 of unused money may be carried over to the next year; amounts above $500 will be forfeited, so be sure to use it up!

Limited Purpose FSA

Available only to employees who enroll in the Health Savings Account (HSA) to offer additional tax-saving opportunities

Contribute up to $2,700 for the year through before-tax paycheck deductions. Note that only dental and vision expenses are allowed until you meet the IRS-required medical deductible of $1,350/individual and $2,700/family, then eligible medical and prescription drug expenses are also allowed. See a complete list of eligible expenses.

If you enroll in a Limited Purpose FSA, you must complete and submit the Deductible Verification Form in the Tools and resources section so you can be reimbursed for eligible medical expenses.

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Choose

Pick a contribution amount when you enroll. You may only change it during the year if you experience a qualifying life event, so estimate carefully.

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Contribute

Your annual contribution will be divided into equal paycheck 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 your Mercer account to request reimbursement for payments you’ve made.

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Use It Up

Up to $500 of unused money may be carried over to the next year; amounts above $500 will be forfeited, so be sure to use it up!

Dependent Care FSA

Available to all employees

Contribute up to $5,000 for the year through before-tax paycheck deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders. This account is not for health care expenses.

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Choose

Pick a contribution amount when you enroll. You may only change it during the year if you experience a qualifying life event, so estimate carefully.

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Contribute

Your annual contribution will be divided into equal deductions from each paycheck. You only have access to money that has actually been deposited into your account.

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Spend

Spend your money by using your FSA debit card, or log in to your Mercer account 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! Be sure to use it up.

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File your claims by the deadline

Be sure to submit your FSA claims by March of 2020 with the appropriate documentation. If you don’t, your claim amounts will be treated as taxable income by the IRS. See claim-filing instructions.

Compare accounts

HSA Limited Purpose FSA Health Care FSA Dependent Care FSA
Available with –$1,850 Deductible Plan
–$2,850 Deductible Plan
–$1,850 Deductible Plan
–$2,850 Deductible Plan
–$400 Deductible Plan
–$900 Deductible Plan
–Other plans*
N/A (not tied to medical plan enrollment)
Receive company contribution Yes, if you enroll in the $1,850 Deductible Plan No No No
Change your contribution amount anytime Yes No No No
Access your entire annual contribution amount at the beginning of the year No Yes Yes No
Access only funds that have been deposited Yes No No Yes
Use the money for All eligible health care expenses Only dental and vision expenses until you meet the IRS-required deductible, then use for all eligible health expenses All eligible health care expenses Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders – cannot be used for health care expenses
“Use it or lose it” at year-end No Yes (carry over up to $500) Yes (carry over up to $500) Yes
Money is always yours to keep Yes No No No

* Also available if you waive medical coverage or if you’re enrolled in the $1,850 Deductible Plan or the $2,850 Deductible Plan but did not enroll in the HSA in the same year.