HR, Payroll and Benefits News

HDHP/HSA: New Type of Health Insurance Offered for 2015
September 15, 2014

The open enrollment period will be October 6 - 31 for all participating plans.  The big news for 2015 is that a new type of health insurance plan will be available as an option to most employees who participate in the Wisconsin Retirement System (WRS).  The new plan is in addition to the health insurance plans currently offered.

High Deductible Health Plan (HDHP) Basics

• The new plan is a high deductible health plan (HDHP) with a health savings account (HSA). 
• If you choose to enroll in an HDHP, you will pay a lower monthly premium but will need to satisfy an annual deductible before benefits are payable. 
• The deductible for single coverage will be $1,500 per year and $3,000 per year for family coverage. 
• Eligible medical, prescription and dental expenses will apply to the deductible.
• Some preventive services are covered in full whether or not you have met the annual deductible.

Health Savings Account (HSA) Basics

• Along with enrolling in the HDHP, you will set up a State of WI HSA. 
• The HSA is a tax-advantaged savings account that you will establish to help you pay for medical expenses you incur before you meet the annual deductible.
• The UW will make an annual contribution to your HSA account. 
• The HSA account is only available if you enroll in an HDHP. 

The open enrollment period website will be available in early October where you will find more information about the HDHP/HSA option, such as eligibility to participate, the employee premium cost of the HDHP, how much the employer will contribute to the HSA and how to determine if the new plan is a good option for you and your family. 

Source: UW Service Center
Categories: Insurance