how the cgcsc hdhp and hsa work together
Post on 11-Jan-2016
18 Views
Preview:
DESCRIPTION
TRANSCRIPT
Center Grove Community
School Corporation
October 30, 2013
How the CGCSC HDHP and HSA Work Together
How the CGCSC HDHP and HSA Work Together
Dr. Paul Gabriel, CFO
IntroductionIntroduction
• Let’s talk about our new HDHP/HSA Plan• You should first watch these videos:
– Why You Should Consider an HDHP/HSA Plan– What is an HSA?
• Go to our website for more info: www.centergrove.k12.in.us/HSA
2
Let’s Define Some TermsLet’s Define Some Terms
• High Deductible Health Plan (HDHP) – Our new health plan with a $3,000-single and $6,000-family deductible
• Health Savings Account (HSA) – A bank account you can use to pay health expenses
• HDHP/HSA – The two in combination
3
Should you choose the HDHP/HSA?Should you choose the HDHP/HSA?
Q1: What are you paying now?Q2: What will your health care costs be in 2014?Q3: What would you pay with the HDHP/HSA?
• Every employee’s situation is different, so you will have to decide for you and your family
• We are going to run through a few examples
4
Employee Expenses Old PlanHDHP/
HSA PlanHSA Account for
2014
Premium deducted from paycheck
$2,568 $1,800Deposited by
CGCSC = $1,428
FSA/HSA deducted from paycheck
$1,000 $1,572 Deposited by Employee =
$1,572 Total deducted from paycheck $3,568 $3,372
Out-of-pocket costs (Maximum minus FSA/HSA amount)
$-0- $-0-Total in account
for 2014 = $3,000
Drug co-pays $100 $-0- Balance at the end of 2014 = $-0-Total costs for the year 2014 $3,668 $3,372
Example #1 - SingleExample #1 - Single• Single employee, with ongoing health issues• On the single plan and reaches $1,000 out-of-pocket max
• How does the HDHP/HSA compare?
5
Example #1 SummaryExample #1 Summary
• If 2014 is exactly as predicted, you save $296.
• If 2014 is better than predicted and your health costs are less, you still save $296 and you will have some money left in your HSA at the end of the year.
• If 2014 is worse than predicted and your health costs are very high, you still save $296 and your HSA account will be zero at the end of the year
6
Employee Expenses Old PlanHDHP/
HSA PlanHSA Account for
2014
Premium deducted from paycheck
$6,264 (family)
$4,344 (Empl.+1)
Deposited by CGCSC = $2,827
FSA/HSA deducted from paycheck
$-0- $-0- Deposited by Employee = $-0-
Total deducted from paycheck $6,264 $4,344
Out-of-pocket costs (Maximum minus FSA/HSA amount)
$100 $-0-Total in account
for 2014 = $2,827
Drug co-pays $100 $-0- Balance at end of 2014 = $2,527Total costs for the year 2014 $6,464 $4,344
Example #2 – Employee+1Example #2 – Employee+1• Married employee (no children), with few health issues• On the family plan and uses the clinic to avoid most expenses
• How does the HDHP/HSA compare?
7
Example #2 SummaryExample #2 Summary
• If 2014 is exactly as predicted, you save $2,120 and have $2,527 in your HSA at the end of the year.
• If 2014 is better than predicted and your health costs are less, you still save $2,120 and you will have more than $2,527 in your HSA at the end of the year.
• If 2014 is worse than predicted and your health costs are very high, you will have to spend an additional $1,353, and your HSA account will be zero at the end of the year.
8
Employee Expenses Old PlanHDHP/HSA
PlanHSA Account for
2014
Premium deducted from paycheck $6,264 $4,968Deposited by CGCSC
= $2,289
FSA/HSA deducted from paycheck $2,400 $-0- Deposited by Employee = $-0- Total deducted from paycheck $8,464 $4,968
Out-of-pocket costs (Maximum minus FSA/HSA amount)
$-0- $3,711Total in account for
2014 = $2,289
Drug co-pays $500 $-0- Balance at the end of 2014 = $-0-Total costs for the year 2014 $8,964 $8,679
Example #3 - FamilyExample #3 - Family• Married employee (with kids)• On the family plan with moderate annual health expenses• Has an auto accident with major injury in 2014
• How does the HDHP/HSA compare?
9
Example #3 SummaryExample #3 Summary
• This is a worst case example, with very high health care costs in one year. You will still save $285, but will have nothing in your HSA at the end of the year.
10
Traditional PPO Plan
High Deductible HDHP Plan
CGCSC HSA Contribution
SINGLE: Payroll deduction $2,568 $1,800 $1,428
SINGLE: Deductible(in network & Out network)
$500/$750 $3,000/$6,000
SINGLE: Out-of-pocket max.(in network & out network)
$1,000/$2,600 $3,000/$6,000
EMPLOYEE+1: Payroll deduction N/A $4,344 $2,827
EMPLOYEE+1: Deductible(in network & Out network)
N/A $6,000/$12,000
EMPLOYEE+1: Out-of-pocket max.(in network & out network)
N/A $6,000/$12,000
FAMILY: Payroll deduction $6,264 $4,968 $2,289
FAMILY: Deductible(in network & Out network)
$1,000/$1,500 $6,000/$12,000
FAMILY: Out-of-pocket max.(in network & out network)
$2,000/$5,000 $6,000/$12,000
Rates That You Need to KnowRates That You Need to Know
11
What Should You Do Now?What Should You Do Now?• Attend one of the meetings:
– Oct. 30, 6:30 pm at ESC – Nov. 11, 4:15 at MGES– Nov. 12, 4:15 at MSC– Nov. 12, 6:30pm at ESC – Nov. 14, 4:15 at MSN
• Attend the open house for personal help:– Nov. 20, 11:00 am to 7:00 pm in the High Tech room at ESC
• Get more info from our website: www.centergrove.k12.in.us/HSA
• Contact us with questions:– Jessica Clayton - 260.427.7123 jessica.clayton@theHSAauthority.com– Paul Gabriel – 881-9326 gabrielp@centergrove.k12.in.us – Glennda Watson – 881-9326 watsong@centergrove.k12.in.us
12
2014 Enrollment Form2014 Enrollment Form
13
2014 HEALTH INSURANCE ELECTION FORM
NAME: SS#:
I am currently enrolled in the traditional PPO plan and I wish to make no changes. I am currently enrolled in the traditional PPO plan (single) and I wish to choose the HDHP plan (single). I am currently enrolled in the traditional PPO plan (family) and I wish to choose the HDHP plan (family). I am currently enrolled in the traditional PPO plan (family) and I wish to choose the HDHP plan (employee +1).
My signature below indicates my verification of my health insurance option for 2014 and any changes will take effect on January 1, 2014:
Employee Signature Date
HEALTH SAVINGS ACCOUNT EMPLOYEE CONTRIBUTION FORM
IRS Maximum for 2014 - Employee Only = $3300 IRS Maximum for 2014 - Employee+1 or Family = $6550
Employee Only Total 2014 Per Pay
CG's Contribution $1,428.00 *PLEASE NOTE:Your Contribution 2014 Total forTotal* Employer plus
EmployeeEmployee+1 must not exceed
Total 2014 Per Pay $3300/singleCG's Contribution $2,827.00 $6550/family Your ContributionTotal*
Family
Total 2014 Per Pay
CG's Contribution $2,289.00Your Contribution
Total* $
Age 55 and Over Catch-up Exception to the above maximums: Employees age 55 and over may make an
Total 2014 Per Pay additional catch-up contribution of up to $1000 for 2014. Catch-up contributions may
CG's Contribution $0.00 also be made pre-tax on a per-pay basis if desired.
Your Contribution $
Total* $
/ 24 = $Your Total Annual Contribution* Number of Pay Periods to be deducted Your total Per Pay Contribution**includes catch up contribution, if amount was entered above
My signature below indicates my authorization to my Employer to deduct the above per-pay HSA contribution from my paycheck beginning 1-3-14:
Employee Signature Date
PLEASE RETURN TO GLENNDA WATSON BY NOVEMBER 26, 2013
Part I - Employee Election
Part II - Health Savings Account Contributions - 2014
Part III - Employee's Total HSA Contribution Election
Sum of all Contributions
Thank You !Thank You !
• Fill out the health insurance election form and return it to Glennda- Everyone must do this, even if they choose to not make any change - Forms will be handed out at every meeting, or - Print one from: www.centergrove.k12.in.us/HSA under “Next Steps”
• Go online to enroll in an HSA account if you choose that option:- Follow the link at www.centergrove.k12.in.us/HSA under “Next Steps”
How Do You Sign Up?How Do You Sign Up?
top related