HR, Payroll and Benefits News
Choosing Between a High Deductible Health Plan Versus Non-HDHP
September 15, 2022
The Annual Benefits Enrollment (ABE) period is September 26-October 21, 2022. ABE gives you the opportunity to enroll in or make changes to most benefits for coverage effective January 1, 2023. It is important to select the health insurance plan design and health insurance carrier that best fits your needs.
To help you prepare for ABE, the following information highlights the similarities and differences of the High-Deductible Health Plan (HDHP) and Non-HDHP.
Similarities between the HDHP and Non-HDHP
- In-network preventive services are covered at 100 percent.
- Federally required preventive drugs are covered at 100 percent.
- Both have a deductible.
- In-network coinsurance is 10 percent (the amount you pay after the deductible for specific services; the plan pays the remaining 90 percent).
- In-network providers will provide lower out-of-pocket expenses than out-of-network providers.
- Both allow participation in the Well Wisconsin program to earn a $150 wellness incentive.
- Both provide an opportunity to include coverage for preventive dental services.
- Both offer nationwide out-of-network coverage through the Access plans.
Differences between the HDHP and Non-HDHP
- HDHPs have lower premiums (the amount deducted from your paycheck).
- HDHPs include a tax-deductible Health Savings Account (HSA) for you to contribute to, to help you prepare for out-of-pocket expenses.
- HDHPs include an employer contribution to the HSA (up to $750 for single coverage, $1,500 for family coverage).
- Non-HDHPs have lower deductibles.
- Non-HDHPs have a deductible for medical services and a separate deductible for pharmacy benefits. HDHPs have a deductible that includes medical services and pharmacy benefits.
- Non-HDHPs have an out-of-pocket limit for medical services and a separate out-of-pocket limit for pharmacy benefits. HDHPs have a combined out-of-pocket limit that includes medical services and pharmacy benefits.
For more information, review the UW System Employee Benefits website.
Source: UW System Human Resources
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