If you have never used a High Deductible Health Plan (HDHP) before, it may appear out of your comfort zone. Unfortunately, people often just see the higher deductible than the other plans and immediately dismiss it without looking further into the plan. The HDHP comes with a Health Savings Account (HSA) and actually boasts many benefits which may be a better plan for you and your family. Now that it's time to make elections for your 2020 benefits, take a moment to read why the HDHP could keep more money in your pocket while providing the same amount of coverage as you could receive in any of the other two health plans.
A HDHP is a type of health plan that gives you more control of your health care expenses. It is designed primarily for people who are relatively healthy and don't plan to make many trips to the doctors office besides basic preventative checkups. However, others can benefit from this type of plan as well. A person who chooses this type of plan will pay a lower premium than they would with the HRA or POS plans. However, since the premiums are lower, the deductible is higher than the other two plans. In order to help offset the higher deductible, this plan comes with an attached Health Savings Account (HSA) where you can contribute funds on a pre-tax basis to pay for your health expenses. Employees will also be eligible to receive cash contribution from Tulane pending completion of wellness activities.
To compare all three plans visit the Plan Comparison Tool & Provider Search page or for more information see guide. If you have questions about this plan, email the benefits team at 2020HealthPlans@tulane.edu.
A HSA is a tax-advantages account created for individuals who are covered under high-deductible health plans (HDHPs), intended to help people save for medical expenses that HDHPs do not cover. The funds in this account are triple-tax-advantaged since the money goes into the account tax-free, comes out tax free, and earns interest tax free. Contributions to this account are deducted from your paycheck on a pre-tax basis and available for use only when money is contributed. The funds will roll over from year to year and grow over time, unlike FSAs where the unused money you contribute expires at the end of plan year. Your HSA is yours to keep even if you retire or leave Tulane. Also, the funds are available conveniently through a debit card as well.
You cannot be enrolled in a HSA and Healthcare FSA at the same time but you may enroll in the Dependent Care FSA.
Starting January 1, 2020 Accrue Health will be administering the HSAs and FSAs for Tulane.
Health Plan Coverage - Preventative services are covered in full, while other services require employees to pay a deductible and coinsurance.
Employee Responsibility - Employees are responsible for paying the deductible up to a certain amount, as well as a percentage of cost, called coinsurance but are protected by an out-of-pocket maximum.
Funding Account - The employee funding account, which may be funded by the employee with tax-free dollars, Tulane, or both helps reduce out-of -pocket expenses for the employee.
Greater Control - Employees have more control over how their account dollars are spent with a wide range of qualified medical expenses (link).
Note: If your visit is for preventative care, remind your health care provider to code the visit correctly so that you're not charged for care. Also, you can fill prescriptions at a pharmacy or by mail order.
All benefits eligible employees are able to enroll in the HDHP & HSA but please be aware of the following: