Download - How the CGCSC HDHP and HSA Work Together
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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
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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
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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
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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
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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?
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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
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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?
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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.
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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?
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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.
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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
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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 [email protected]– Paul Gabriel – 881-9326 [email protected] – Glennda Watson – 881-9326 [email protected]
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2014 Enrollment Form2014 Enrollment Form
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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
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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?