HR, Payroll and Benefits News
HDHP/HSA: New Type of Health Insurance Offered for 2015
September 5, 2014
The Annual Benefit Enrollment (ABE) period begins October 6 and ends on October 31, 2014 for participating plans.
The big news for 2015 is that a new type of health insurance plan will be available as an option for most employees who participate in the Wisconsin Retirement System (WRS). The new plan is a high deductible health plan (HDHP) with a health savings account (HSA). The HDHP/HSA will be offered in addition to the current type of health plans.
You are NOT required to enroll in a HDHP/HSA – it will just be an option available to you.
Eligibility Basics
The new HDHP/HSA option is available to employees who:
- Participate in the Wisconsin Retirement System (WRS); and
- Are not enrolled in Medicare or Tricare; and
- Are not covered under another health insurance plan.
Employees who are eligible for the graduate assistant/short term academic staff benefits package are not in the WRS and are not eligible to enroll in the HDHP/HSA option.
High-Deductible Health Plan (HDHP) Basics
- If you decide to enroll in the HDHP for 2015, you will choose a health plan just as you do now (for example, Physicians Plus HDHP or Humana HDHP).
- If you choose to enroll in an HDHP, you will pay a lower monthly premium but will need to pay an annual deductible before benefits are payable. An annual deductible is the amount that you will pay out-of-pocket before benefits are payable by the health plan.
- The annual deductible will be $1,500 for single coverage and $3,000 for family coverage. The deductible applies to eligible medical, prescription and dental expenses.
- Once the deductible is met, benefits are payable like they are under the current health plans. See a summary of out-of-pocket costs for the current health plans.
- There are some preventive services that are covered in full whether or not you have the HDHP.
Health Savings Account (HSA) Basics
- If you enroll in a HDHP, you are also enrolledin the state-sponsored HSA. The HDHP and HSA are mutually required.
- An HSA allows you to set aside money on a pre-tax basis to pay for eligible medical, dental and prescription drug expenses, including those expenses that apply to your deductible under the HDHP.
- Monies in your HSA do not expire and roll over from year to year. Can be used as a tool for saving for future medical expenses.
- The UW will make an annual contribution to your HSA account (the amount is determined by the Office of State Employment Relations).
- The HSA is an account that belongs to you, even if you leave employment with the UW.
The ABE website (www.uwsa.edu/abe) will be available in early October where you will find more information about the HDHP/HSA option, such as the employee premium cost of the HDHP, how much the employer will contribute to the HSA and how to determine if an HDHP/HSA is a good option for you and your family.
Source: UW System Administration
Categories: Insurance