Your Optum Migration Guide: Facts, FAQs, and more!

This resource only applies to worksite employees and employers whose HSAs, FSAs, or OCBs are migrating from WageWorks to Optum.

 

Key Facts


You deserve the best! That’s why ADP TotalSource® is adopting Optum as its new Spending Accounts vendor—which will elevate the experience for employees with Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and Online Commuter Benefits (OCB). Read on to find out everything you need to know about the change.

 

What:

  • ADP TotalSource will use Optum (instead of WageWorks) as its Spending Accounts vendor.
  • Spending Accounts include FSAs, HSAs, and OCBs.

Why:

  • It’s simple: we’re always looking for ways to improve our offerings! This switch will give you access to a state-of-the-art product from a vendor that’s laser-focused on market research, continuous improvement, and unbeatable service.
  • Many of our worksite employees are already using the Optum product, so we decided it was time to adopt on a larger scale. (Onward and upward!)

When:

  • The change will go into effect on November 1, 2018.
  • After November 1, all deductions will flow through to Optum, and all claims will be sent to Optum.
  • Optum Payment Cards should arrive on or around November 1, depending on when you enrolled.
  • For HSA and OCB participants, you may want to take action.

 

Action Required


First and foremost, you don’t have to do anything. While you will likely want to open an HSA, we will copy your existing FSA and OCB elections to Optum, effective November 1. If you would like to make changes, you will have that ability too.

 

FSA

  • Woohoo! You don’t have to do anything for now.
  • Please note for your records: there will be a brief blackout period from October 13 – 31 when you’ll be unable to submit claims.
  • If you have an HSA, you can still use your card for eligible HSA expenses during the FSA blackout.
  • Your goal election, year-to-date contributions, and year-to-date claims will automatically transfer to Optum. (Cue sigh of relief.)

HSA

  • If you want to continue HSA contributions, you’ll need to enroll in an Optum HSA once the window opens on October.
  • You are not required to take action, and ADP is not mandating that you move any funds to Optum.

How do I enroll?

After enrollment opens on October 8, you’re just a few clicks away:

1. Simply log in to ADP TotalSource®
2. Select Myself / Benefits / Optum Health Savings Account (HSA)
3. Elect a contribution amount

If you want to open an HSA to receive employer contributions but don’t wish to contribute, you can elect a $0 contribution amount.

OCB

  • We will copy over any existing Parking or Transit election to Optum from WageWorks, for deductions starting November 1.
  • Between October 8 and 20, you may adjust your election. Going forward, you can change your election by the 20th of the month prior to your elected benefit month.

How do I manage my election?

After enrollment opens on October 8, you’re just a few clicks away:

1. Simply log in to ADP TotalSource®
2. Select Myself / Benefits / Optum Online Commuter Benefits
3. Elect a contribution amount for Transit and/or Parking

 

Communications History


Employees Email 1 – August 28 communication announcing the change
Employees Email 2 – October 3 communication laying out action items
Employer Email – October 1 communication giving clients a heads up
Client Webinar – September 27 recording

 

Frequently Asked Questions (FAQs)


 

Health Savings Accounts (HSA)

How do I open an Optum HSA?
  1. Simply log in to ADP TotalSource®
  2. Select Myself / Benefits / Optum Health Savings Account (HSA)
  3. Elect a contribution amount

If you want to open an HSA to receive employer contributions but don’t wish to contribute, you can elect a $0 contribution amount.

What changes can I expect?

Starting with November pay periods, all paycheck deductions and employer contributions will flow through to Optum, rather than UMB.

If you’re not enrolled with Optum, you won’t be eligible to receive employer contributions or pre-tax payroll contributions.

You’ll be able to access your account information by registering and logging into www.optumbank.com. After November 1, you will be able to navigate directly to Optum’s website via MyTotalSource by clicking the Optum Spending Accounts link.

How will I access my Optum HSA balance?

You’ll be able to log into your Optum HSA via www.optumbank.com, using your personal information. You will also be able to access the Optum website by clicking the Optum Spending Accounts link on the MyTotalSource site.

What if I miss the enrollment deadline?

Don’t worry: you can enroll in an Optum HSA any time after the window opens, as long as you’re already participating in an eligible High Deductible Health Plan (HDHP).

Note that you forfeit any employer contributions for months during which you don’t have an open HSA through Optum once November starts – so make sure to enroll!

What are the HSA investment options with Optum?

With Optum, you’ll be able to invest HSA funds over $2,000, and you’ll have access to a number of mutual fund options.

To find out more, explore Optum’s investment page: https://www.optumbank.com/all-products/hsa/investment-services.html

How can I move funds from my UMB HSA to my Optum HSA?

After you open your Optum HSA – and remember the earliest is November 1 – you can complete a Trustee-to-Trustee Transfer form to move your funds.

UMB will administer a $25 closure and transfer fee during this process, taken out of the funds transferred. If your account has a balance greater than $500, Optum will reimburse your account for that $25 charge.

You must liquidate all HSA investments before you’re able to transfer your HSA balance to another trustee, so we encourage you to review your active investments today.

We will be sending detailed instructions on this process in early November.

What if I want to keep my UMB HSA?

If you want to keep your UMB HSA, you can keep your UMB HSA! We are not mandating that you close your account with UMB.

An HSA is a personal savings account, so you are the account owner. Regardless of ADP’s switch to Optum, you can choose to keep the UMB account and use it however you’d like.

Starting in February 2019, UMB will begin administering a monthly administrative fee of $2.95, taken out of your HSA balance.

What if I don’t want to open an Optum HSA?

You’re not required to open an Optum HSA. However, you must have an Optum HSA to receive employer HSA contributions and pre-tax payroll contributions after November 1.

How will I access my UMB HSA?

After the official transition in November, you’ll need to visit UMB directly via hsa.umb.com to view and manage your account. 

When will funds stop posting to my UMB HSA?

After your last paycheck for the month of October, ADP will not send any employee or employer funds to UMB.

Can I still use a card to access my UMB HSA funds?

For UMB, you can continue to use your WageWorks/ADP payment card for HSA-eligible expenses through December 30. You’ll receive a non-ADP debit card from the bank sometime in January, which you can use to access your HSA funds.

What if I already have an Optum HSA?

You will need to open an additional Optum HSA through ADP TotalSource in order to receive employer pre-tax payroll contributions. You can easily merge your two Optum HSAs at no cost by calling Optum after both accounts are established.

I don’t have an HSA with UMB – can I sign up for Optum?

You can open an HSA at any point in the year, so long as you are eligible to open one. You do not need to wait for open enrollment season to open an HSA – it’s a personal bank account!

I have an HSA with UMB, but am not currently eligible to contribute. Can I open an HSA with Optum?

You must be eligible to open an HSA at the time of your election to open an HSA with Optum. Until then, you are able to use your UMB HSA funds on eligible expenses. If you elect a High Deductible Health Plan in the future, then you can open a new HSA with Optum.

 

Flexible Spending Accounts (FSA)

How do I manage my Optum account?

You will be able to navigate directly to Optum by following the Optum Spending Accounts link on MyTotalSource, after November 1.

You can also navigate directly to Optum at www.optumbank.com. After registering, you can follow the “I Want To” instructions at the top of the website to review how to reimburse yourself for eligible expenses.

You can also use the Optum Bank® Mobile App to review your balance and upload any claims for reimbursement.

How do I open an Optum FSA?

Good news: there’s no need! ADP will automatically transfer your current plan year election, contributions and claims paid to Optum, effective November 1. (Three cheers for one less item on your to-do list!)

When is the FSA Claims blackout?

Grab the flashlight. There’s a blackout period from October 13 to October 31, 2018.

What does this mean? During the blackout period, you won’t be able to use your card for FSA expenses nor submit claims to WageWorks OR Optum—so save your receipts for all eligible expenses. You can reimburse yourself directly through Optum once your account goes active on November 1.

Where do I submit my claims?

After the blackout ends on November 1, you’ll be able to submit claims directly to Optum for all eligible plan year services.

Note: Even if you terminated employment before the transition, you would submit claims to Optum after November 1 for eligible service dates.

What if I submitted a Dependent Care FSA claim that hasn’t been fully paid out?

Starting November 1, you can submit a claim to Optum for the unpaid portion. (For example: If you’d filed a $1,000 claim and $700 had been paid to-date, you could submit a claim to Optum for the remaining $300 in November.)

How do I submit claims to Optum?

It’s easy! You can submit claims directly to Optum via their website or mobile app.

You can also submit a paper claim reimbursement form via fax or mail. The instructions on the claim form, found on Optum’s website, provide all of the details.

Can I still use a card for eligible expenses?

Absolutely. You’ll receive two identical cards from Optum that can be used for your HSA, FSA and Online Commuter Benefits. (You can do whatever you want with your second card—keep it as a backup, give it to a dependent, or throw it away!)

Note that the Optum card can be used for eligible Dependent Care FSA expenses, provided the merchant is able to accept card swipes.

 

Online Commuter Benefits (OCB)

What changes can I expect?

The biggest change? You’ll be able to make next month’s election through the 20th of the current month. (So say goodbye to ordering two months in advance!)

You’ll now build up funds, rather than having them deducted in advance and made available on the first of the month. Because of this new process, you may need to wait a month to make sure you accrue enough funds to purchase your first transit pass.

You also won’t have to order passes through a third-party vendor anymore. Funds will be posted directly to your Optum account and made available on your card. You can then use these funds to purchase an eligible transit pass—up to the pre-tax monthly limit of $260.

How does the new Commuter Benefits product work?

Optum has created a new offering for ADP, based on feedback from millions of worksite employees.

In the past, Wired Commute required you to order your product two months in advance, and took deductions out of your account the month before you received your order.

Moving forward, this process will be much simpler. You’ll accrue funds through deductions and, using the Optum card, swipe for eligible expenses.

You’ll get up to $260 per month for transit and parking, respectively—or your available balance, whichever is lower. Also, you won’t need to order two months in advance. You’ll be able to change your election through the 20th of the month prior.

For example: If you elect to contribute $200 in the month of December, you can make that election through the last day of November. ADP will deduct $200 from you in December, broken up across that month’s paychecks. Those funds will be made available on your card shortly after they’re deducted.

For parking expenses, you can also file a paper or online claim reimbursement form.

If you use your pre-tax commuter funds to purchase a pass that costs more than the monthly $260 pre-tax limit, then you’ll need to add a second card and process a split payment directly with the transit authority.

For example: In the New York City area, it’s very easy to add a second card to the eTix mobile app when ordering passes for Long Island Rail Road or Metro North.

How do I enroll?

You’ll place your last order with Wired Commute by September 20. ADP will take the deduction in October and make the order available to you in November.

In October, we will copy your enrollment into Optum, effective November 1. At this time, you’ll be able to edit the amount you wish to contribute to Optum in November—up to $260 for Parking and Transit, respectively. Keep an eye on this document and your email for more details in the coming weeks.
This contribution will continue each month until you (1) make changes in MyTotalSource or (2) ask your MyLife Advisor to change it for you.

What can I expect during the transition period from Wired Commute to Optum?

If you placed a Commuter Benefits order with Wired Commute in September, you’ll receive this last order in November. This is also when you’ll be deducted for your first Optum commuter election.

Note: Do not use your Optum balance in November if you are receiving a Wired Commute order! Spending over $260 in a given month is not compliant with IRS regulations.

Any funds you accrue through Optum in November are funds that you can start using for eligible expenses on December 1.

What happens to my funds with Wired Commute?

You’ll get them back! ADP will review your final balance with Wired Commute and make any remaining funds available on Optum by the end of January. There are several audits required to complete this process, so please be patient.

I used to order a local transit pass and have it delivered every month/year. What do I do now?

In most cases, you can still order the pass; however, you will need to order it directly. All you will need to do is place an order directly with your transit authority, using your Optum Payment Card to cover up to $260 of the monthly cost of the pass. If the cost is greater than the monthly limit, then you should be able to add a second card to cover additional costs.

If you need help understanding how to use the card to purchase your pass, please contact a MyLife Advisor and we can assist.

Example: Long Island Rail Road’s “Mail and Ride” program allows for two (2) credit cards to be placed on a monthly order. If your pass cost $280, you would put $260 on your Optum card and $20 on a personal card.

Why is there a monthly limit of $260?

This is a limit set by the Internal Revenue Service (IRS), limiting monthly expenditures for Transit and Parking pre-tax expenses to $260 each.   

 

I’m an employer. What else do I need to know?


In addition to the information above, here are a few things you might want to consider:

 

One-Time HSA contributions

We will no longer offer the ability for employers to contribute directly to their employees’ HSAs via a lockbox. Instead, you will need to contact your Human Resources Business Partner (HRBP) or Benefits Service Specialist (BSS) to request adjustments for employer contributions, which will be billed on a future benefits invoice.

This will help to maintain contribution compliance and avoid potential discrimination scenarios.

 

Want a Progress Update?

Your HRBP or BSS can help verify who has opened an HSA or elected commuter benefits with Optum. Please reach out to them if you want an update. They are also able to work with Optum to provide you a report of cards that have been mailed out.

 

Commuter Benefits billing

ADP will no longer bill you for commuter benefits elections. Instead, these elections will be processed directly via your employees’ payroll deductions.
This will remove the risk of insufficient reimbursement for a worksite employee’s order due to employee termination or payroll error.

New Hires

Since we’re transferring to a new HSA vendor in November—and there’s a $25 transfer and closure fee to move funds— new hires may want to wait until November to open an HSA.

For FSAs and Commuter Benefits, on the other hand, any election will be transferred seamlessly to Optum.

We recommend sharing this online FAQ with new hires to help them understand their options!

 

 

 

If you have any questions about the Optum products, call 1-800-243-5543 from 8 a.m. to 8 p.m. ET to reach the Optum Call Center.

 

For questions on the transition to Optum, please reach out to a MyLife Advisor at 1-800-554-1802 or MyLifeAdvisorTS@ADP.com.

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