HSAs and the Changing Health Insurance Landscape

Transcription

1 HSAs and the Changing Health Insurance Landscape Wednesday, April 2, :45 AM 9:45 AM Mark W. Altmayer, CFO/Treasurer, Huntley CSD 158 Stefanie L. Croix, Asst. Busn. Mgr., Lockport Twp HSD 205 Audra Scharf, VP PMA Financial Network, Inc. Todd C. Sholeen, VP FirstMerit Bank

2 Health Savings Accounts Qualifying for an HSA You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. You have no other health coverage except what is permitted under other health coverage. You are not enrolled in Medicare. You cannot be claimed as a dependent on someone else's 2013 tax return.

3 Health Savings Accounts Self-only coverage Family coverage Minimum annual deductible Maximum annual deductible and other out-of-pocket expenses* $1,250 $2,500 $6,250 $12,500

4 Health Savings Accounts For 2014, if you have self-only HDHP coverage, you can contribute up to $3,300. If you have family HDHP coverage you can contribute up to $6,550. A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit.

5 Health Savings Accounts If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. You may have to pay an additional 20% tax on your taxable distribution.

6 Health Savings Accounts Account Set Up Checking Account Debit Card Online Access Bill Payment Service Monthly Statements Annual Statements (1099S, 5499SA to file 8889) Direct Deposit (Employee and/or Employer contributions)

7 Health Savings Accounts Individual Accounts or Group Accounts Other Investments with higher return Educational Portals Fee structure (monthly, etc.)

8 Health Savings Accounts QUESTIONS??? Todd Sholeen Vice President, FirstMerit Bank Direct: Cell: North LaSalle Street, 12 th floor, CHI902 Chicago, IL 60601

9 HSAs and the Changing Health Insurance Landscape Lockport Township High School District 205 s Experience Wednesday, April 2, :45 AM 9:45 AM

10 LTHS District 205 s HSA Experience LTHS s High Deductible HSA Plan Highlights There are NO copays on this plan. ALL Medical and Rx Services apply to the deductible (except Preventive Care). Preventive Care is covered at 100% In-Network and is not subject to deductible. Members pay 100% of the cost of the service or prescription (after the BCBS provider discount is applied). Deductible: $2,500 Single/$5,000 Family Once the Deductible is met, ALL covered/approved services are covered at 100% in-network (80% out-of-network).

11 LTHS District 205 s HSA Experience 1/1/2012 LTHS added a Qualified High Deductible PPO plan with a Health Savings Account 7/1/2012 As a result of collective bargaining, LTHS began making employer contributions to employees HSA accounts LTHS changed eligibility so that new hires had to take the High Deductible HSA plan for the first 5 years of employment

12 LTHS District 205 s HSA Experience Excerpt from LTHS Teacher Contract: H. GROUP HEALTH INSURANCE 2. A full, comprehensive PPO and HSA health insurance plan including physician services and prescription drug services will be provided by the Board of Education. The Board will pay 90% of the premium of either the PPO or HSA plan for either single coverage or family coverage. The employee will pay 10% of the premium for either single or family coverage. 3. Employees hired for the first time for school year and thereafter will only be eligible for the HSA plan. Beginning in the sixth year of consecutive full-time employment in District 205, the employee is then eligible for either the HSA plan or the PPO plan. 4. Beginning with the school year and thereafter, for employees that enroll into the HSA plan, the Board will contribute to the employee s HSA account an amount equal to 50 per cent of the difference in Board contribution between the PPO plan and HSA plan.

13 LTHS District 205 s HSA Experience FY 2014 Health Insurance Premiums - LTHS District Certified Staff Plan Annual Premium Annual Employer Contribution Employer Contribution Per Check Standard PPO Single $7,236 $6, $ High Deductible PPO Single $6,636 $5, $ HSA Employer Contribution Single $ $10.38 Standard PPO Family $20,700 $20,700 $ High Deductible PPO Family $18,984 $18,984 $ HSA Employer Contribution Family $ $29.70

14 LTHS District 205 s HSA Experience SelectAccount- Low fees (3 different plans) Debit cards for employees District Online Access Add new members/inactivate terminated members Process employer and employee contributions View reports and invoices Employee Online Access View account balance and review account history debit card transactions Submit claims to pay health care providers directly Option to invest HSA funds through Charles Schwab & Co., Inc.

15 LTHS District 205 s HSA Experience Statistics Upon initial enrollment for 1/1/2012 only 5 employees opted to move from the Standard PPO plan to the High Deductible HSA plan Of those 5 employees, 2 were the Director of Business Services and myself As of 2/28/2014, LTHS has 29 employees enrolled in the High Deductible HSA plan Of those 29 employees, 3 are contributing the maximum amount to their HSA account Of those 29 employee, 10 are making contributions to their HSA account through pre-tax deductions from their paychecks For the 2013 Plan Year, 62% of Standard PPO plan participants spent less than $750 out of pocket

16 LTHS District 205 s HSA Experience QUESTIONS??? Stefanie L. Croix, Assistant Business Manager Lockport Township High School District 205 Phone: (815) Fax: (815) scroix@lths.org LOCKPORT TOWNSHIP HIGH SCHOOL DISTRICT 205 Inspiring, guiding, and preparing students for life-long learning

17 HSAs and the Changing Health Insurance Landscape Huntley School District 158 s HSA Experience and other Cost Containment Options Wednesday, April 2, :45 AM 9:45 AM

18 Rising Costs of Employee Benefits in Illinois Schools

19 Huntley 158 s HSA Experience Huntley s High Deductible HSA Plan Experience Over a two year period, Administration and well as the District s Broker held numerous training sessions regarding the benefits of Health Savings Accounts. After these sessions, employees shared their concerns with the Union and as a result, in both years, the HSA Benefit Plan was not rolled out. The District continues to try and educate the staff on the benefits of implementing a HSA.

20 What are other District s Doing?

21 What are other District s Doing?

22 QUESTIONS? Mark W. Altmayer CFO/Treasurer, Huntley CSD 158 Phone: (847) Audra F. Scharf Vice President, PMA Financial Network, Inc. Phone: (630) Tony Jerisha Customer Success Manager, Forecast5 Analytics, Inc. Phone: (630)