How the CGCSC HDHP and HSA Work Together

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

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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


$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


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• 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


$-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


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• 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

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?

Documents

How the CGCSC HDHP and HSA Work Together