|
This is the seventh of ten messages Outreach and Training will send related to the SEBB Program’s annual open enrollment.
We ask that you share these messages with employees according to the recommended schedule. Please do not forward this email directly to employees. Instead, copy and paste the message included below into your regular means of communication to distribute to employees.
Thank you in advance for your time and effort to share these messages. If you have comments or suggestions, contact us through HCA Support.
Recommendation: Share this message with employees on 11.10.2023.
High-deductible health plans with health savings accounts
UMP High Deductible is the SEBB Program’s high-deductible health plan (HDHP) with a health savings account (HSA). HDHPs typically offer lower monthly premiums, a higher annual deductible, and a higher annual out-of-pocket limit than most medical plans.
For 2024, the IRS raised the minimum deductible for HDHPs to $1,600 for single subscribers and $3,200 for families.
An HSA is a tax-exempt account that anyone can deposit funds on your behalf. You can use your HSA to pay for IRS-qualified out-of-pocket expenses (like deductibles, copays, and coinsurance), including some expenses and services that your health plan may not cover.
Generally, HDHPs work well for people who:
- Can meet the eligibility requirements
- Prefer a lower monthly premium
- Want to save on taxes by contributing to an HSA through pre-tax payroll deductions
- Are willing to check which services and supplies are qualified expenses
- Can keep track of HSA expenses in case of an IRS audit
HDHPs can encourage you to make informed decisions about your health care and spend HSA funds wisely. Those who choose to enroll in UMP High Deductible should prepare to invest time and energy in seeking qualified HSA expenses from network providers.
Eligibility
You must meet certain eligibility requirements to enroll in UMP High Deductible. If you are not eligible for the HSA and enroll, you may be liable for tax penalties.
To be eligible to enroll in UMP High Deductible, you cannot be enrolled in:
- Medicare Part A or Part B
- Medicaid (called Apple Health in Washington State)
- Another comprehensive medical plan
- VEBA, unless you convert it to limited-purpose HRA coverage
- TRICARE
- Medical flexible spending arrangement (FSA) or Health Reimbursement Arrangement (HRA) Note: You may enroll in a Limited Purpose FSA.
Other exclusions apply. Check the IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans, contact your tax advisor or call HealthEquity (the HSA Administrator) toll-free at 1-844-351-6853 to verify whether you qualify. See the Complete HSA Guidebook for full details.
Contributions
When you enroll in UMP High Deductible, your district will contribute $375 per year ($31.25 per month) to your HSA for enrollment as a single subscriber or $750 per year ($62.50 per month) for enrollment for you and at least one other family member.
You can choose to contribute to your HSA as well. The maximum HSA contribution from all sources for a single subscriber for 2024 is $4,150 and $8,300 for a family. Employees age 55 and up can contribute up to $1,000 more per year.
Learn more on the SEBB Program’s Health Savings Accounts (HSAs) webpage.
|
