Why choose an HSA Plan?

With either HSA plan, you pay less in monthly premiums to participate in the plan than you would in the PPO. No matter which plan you choose, you have access to the same network of United Healthcare doctors. But when you go see the doctor under the HSA plans, you’ll pay the negotiated cost of care until you reach your deductible instead of the copay you would have paid under the PPO.

What really sets the HSA plans apart is the savings account. This is where both you and Transocean set aside dollars on a pre-tax basis to help pay for qualified medical expenses. These dollars go into your account tax-free and can grow and be spent tax-free too. And the dollars in your account are always yours, even if you leave Transocean or retire.

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How does the HSA account work?

A Health Savings Account is a tax-favored savings account created to help you pay for eligible medical expenses. Here are the advantages of the HSA:

  • Tax-deductible — Contributions you make to the HSA are 100% tax deductible (up to the IRS limit) just like a 401(k) or IRA.
  • Tax-free — If used on qualified medical expenses, any money you take out of your account is never taxed.
  • Tax-deferred — Interest and investment growth earnings on your account are not taxed until you use them. If used to pay for qualified medical expenses, they are tax-free.
  • Less like an FSA, more like a 401(k) — Unlike an FSA, any contributions to your account (both yours and Transocean’s) are never forfeited at the end of the year. So, dollars left in your account continue to accumulate. They can also be invested and grow over time, just like a 401(k).
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If I pick the HSA Plus or HSA Basic, will I need to change doctors?

The PPO, HSA Plus and HSA Basic are all United Healthcare medical plans, so they all use the same network of doctors. If you switch between plans in any way, the only thing you’ll need to change is when you pay for care and how much you pay at the time of service.

One big difference between the three plan options is how much you pay in premiums each month. It’s a good idea to look at all of the costs, premiums, out-of-pocket costs and even the Transocean contribution, so you get a complete picture of your overall health care spend. Try a few of the Real Life Examples to see what spending looks like for some sample individuals and families. You may be surprised at which plan costs less in the long run.

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How much money can I put into my health savings account?

Each year the IRS determines the maximum you can contribute to an HSA plan savings account. For 2020, the maximums are:

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How do I set up my health savings account?

If this is your first time to have a health savings account during annual enrollment, you will need to create an account with Fidelity after December 2, 2019.  You will receive an email from Fidelity when it’s time to open your account. If you’re enrolling as a new hire mid-hear, you can set up your health savings account one week after you make your Benefits Elections.

Visit YourTransoceanBenefits.com and select Log InTo My Savings Account. Click Fidelity Netbenefits.com and login to your account (the same account you use for your 401(k)). Then, click the Open HSA button to begin. If you don’t have a Fidelity account, just select Register as a New User.

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What happens if I choose an HSA Plan and don’t set up my Health Savings Account?

You must have a destination for contributions – both yours and Transocean’s— so we know where to transfer the funds. If you don’t set up an account, Transocean will not be able to transfer funds and you will not have HSA dollars when you need care. So if you’re new to the HSA Plans, it’s important to set up your account as soon as possible (after December 2, 2019 if you enroll this year during annual enrollment). Setting up a Health Savings Account is easy. Just Visit YourTransoceanBenefits.com and select Log InTo My Savings Account. Click Fidelity Netbenefits.com and login to your account (the same account you use for your 401(k)).  Then, click the Open HSA button to begin. If you don’t have a Fidelity account, just select Register as a New User.

If you already have a Transocean Health Savings Account with Fidelity, you don’t need to do anything. You can continue to use the same account you’ve used in previous years. You can even keep this same account through retirement.

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How do I know how much money is in my account and how much has been spent?

Just like your 401(k), you can view your Health Savings Account online at Netbenefits.com. This way you can see all of your savings — both in your Health Savings Account and in your 401(k) in one place. All account transactions are available once you log in to your account and select HSA.

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What happens when I spend all of the money in my HSA?

Once all funds in your HSA have been spent on eligible health care costs, you will need to cover any additional costs on your own until you reach the plan’s out-of-pocket maximum. This is the most you will pay in one plan year to cover qualified medical expenses. At that point, the plan will pay 100% of your costs.

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Can I increase my HSA contributions after enrollment elections are complete?

Yes. Just like your 401(k), you have complete control over how much money you contribute to your account, including increasing or decreasing your contributions at any time.

If you want to change your health saving selections at any time during the year, just visit YourTransoceanBenefits.com, select My Benefits Account and log into the benefits site. Once there, select Life Changes from the menu and then select the HSA Contribution Change tile. All HSA contributions are effective the first of the following month, so plan ahead if you need to make changes.

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Can I have a Health Savings Account under the PPO?

The Transocean PPO is not considered an HSA qualified plan. Because there are tax advantages to having a Health Savings Account, you must enroll in a qualified plan.

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Is the Transocean contribution to my HSA account enough to cover my medical expenses?

It depends on your typical health care spend.

However, in general, it’s a good idea to make your own contributions to your HSA account. This way, if you do have unexpected medical expenses, the money is there when you need it. Plus, if you put more money in your account than you need, it’s still yours to help cover future health care costs. It just rolls over to the next year. Plus, you can even take it with you if you leave Transocean, like at retirement.

If you want to see how saving in the HSA works and how adding more could really pay off, check out the HSA video.

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When can I start using the funds in my Health Savings Account?

First year in an HSA plan?

You’ll first need to set up a Health Savings Account with Fidelity, which you can do by going to Netbenefits.com after December 2, 2019. New participants can access HSA dollars beginning in January of the coming plan year. Transocean’s contribution will be included on the January 15th paycheck and will be available at Fidelity a few days after that paycheck.   Your contributions are available after payroll deductions have been made. If you get into the plan year and feel you need more dollars in your HSA, you can change your contribution amount at any time. Remember, the adjustment is effective the first of the month after you make the change, so be sure to leave a little extra time for payroll adjustment processing. 

Been in the HSA for a year or more?

Once your account is established, you can use the funds available in your HSA account at any time. If your 2019 account is empty, you’ll need to wait until a few days after the January 15, 2020 to access Transocean’s contribution or any additional contributions you have elected for the coming year.

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What will I be responsible for paying when I go to the doctor under the HSA plans?

Just like the PPO, all preventive visits are 100% covered, so you’ll never pay out of pocket for those visits. But when you do go to the doctor for other reasons, like when you’re sick, you’ll pay the United Healthcare negotiated rate for that service until you meet your deductible.

To help keep your out-of-pocket costs as low as possible, United Healthcare has an agreement with in-network doctors on the fees they can charge for specific services. These fees are generally more than the PPO’s $25 copay but less than what you would pay if you had no insurance or if you go out of network. This is why it’s important to stay in network when you receive care.

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How do I pay for medical costs in the HSA?

Under a PPO, you would pay a copay at the time of service. But, with an HSA plan, your doctor's office files your claim and United Healthcare processes it. If you are still working toward meeting your deductible, your doctor's office may collect from you at the time of the visit or will send you a bill. If you have money in your HSA, you can just use your debit card to pay when you receive service or the bill. Or you can continue to save your HSA dollars and pay out of pocket.

At first, it may feel like you’re paying more under the HSA plans. But remember, you don’t pay as much each month in medical premiums. Plus, Transocean is helping you out by contributing some dollars added to your HSA account.

Want to see some examples of how you pay for medical costs under all three plans? Check out the Real Life Examples.

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What’s the difference between the negotiated rate, the deductible and the out of pocket maximum?

These are the three different stages of how you’ll pay for care under an HSA plan. They go in this order.

1.    Negotiated rate — To help keep your out-of-pocket costs as low as possible, United Healthcare has an agreement within-network doctors on the fees they can charge for specific services. You pay these costs first.

2.    Deductible — Once you have spent the amount on the chart below, the plan begins to pay more for your care. In the HSA Plus, the plan pays 90% of your eligible in-network costs or 80% for the HSA Basic. In either plan, you pay more if you go out of network because the plan only covers 60% of the eligible cost.

3.    Out-of-pocket maximum — This is the most you’ll pay for health care in a single plan year — January 1–December 31. Although few people ever reach the out-of-pocket maximum, when they do reach it, the plan pays 100% of eligible medical expenses for the rest of the plan year.

As you can see, the deductibles and out-of-pocket maximums are higher for the HSA Basic. That’s because the monthly premiums for that plan option are lower.

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What is considered a qualified medical expense?

A qualified medical expense is one that has been identified by the IRS Code section 213(d). These expenses must be primarily to alleviate or prevent a physical or mental defect or illness and include dental and vision costs. Most medical expenses will fall under the IRS Code and be considered a qualified medical expense.

Some examples of non-qualified expenses are:

  • Cosmetic surgery
  • Health club dues
  • Maternity clothes
  • Toothpaste, toiletries and cosmetics

For more details see the official IRS publication 502.

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Can I use my Health Savings Account to pay for my medical premiums?

No. Premiums are considered a nonmedical withdrawal, so they would be subject to taxes and penalties.

There are exceptions to this rule if you use your health savings account to pay for

  1. Qualified long-term care insurance
  2. Health insurance while you receive unemployment compensation
  3. Paying for COBRA
  4. Medicare premiums

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Can I invest my Health Savings Account dollars?

Yes, you can choose to invest your Health Savings Account dollars once the funds in your account reach $500 or more. Any investment growth you achieve is tax-deferred, which means you don’t pay taxes on that growth until you use it. However, if you spend all of your dollars on qualified medical expenses, you’ll never pay taxes—even on the investment growth.

Of course, you can’t grow what you don’t have. If you spend your Health Savings Account down to $0 each year, you’ll miss out on the savings and investment benefits of the HSA. So, it’s a good idea to make additional contributions to your HSA each year to keep growing the balance and take advantage of this additional savings and investment tool.

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Why would I want to grow my Health Savings Account?

We’re all getting older and will eventually need more health care as we age—especially in retirement. Having more money set aside to cover those expenses is always a great idea. Think of the Health Savings Account as a great tax-advantaged companion to the 401(k).

You can save for medical costs WITH your Health Savings Account and save for the rest of life’s expenses in your 401(k). And, if you’re already maxing out your 401(k) contributions, you now have one more way to lower your taxable income while saving for the future, so Uncle Sam takes less and you save more.

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Who administers the Health Savings Account?

Transocean has selected Fidelity to administer you’re the Health Savings Accounts associated with our plans. This way you can view and manage all of your savings and investment dollars in one place.

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Questions?

Get answers from the Transocean Benefits Center by logging into your account and selecting Need Help Now, or by telephone at 1 855 RIG 5005 or +1 646 259 0401.