# How the CGCSC HDHP and HSA Work Together

## Presentation on theme: "How the CGCSC HDHP and HSA Work Together"— Presentation transcript:

How the CGCSC HDHP and HSA Work Together
Center Grove Community School Corporation October 30, 2013 Dr. Paul Gabriel, CFO

Introduction 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:

Let’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

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

Deposited by Employee = \$1,572
Example #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? Employee Expenses Old Plan HDHP/ HSA Plan HSA Account for 2014 Premium deducted from paycheck \$2,568 \$1,800 Deposited 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- Total in account for 2014 = \$3,000 Drug co-pays \$100 Balance at the end of 2014 = \$-0- Total costs for the year 2014 \$3,668

Example #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

Deposited by Employee = \$-0-
Example #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? Employee Expenses Old Plan HDHP/ HSA Plan HSA 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- Deposited by Employee = \$-0- Total deducted from paycheck \$6,264 \$4,344 Out-of-pocket costs (Maximum minus FSA/HSA amount) \$100 Total in account for 2014 = \$2,827 Drug co-pays Balance at end of 2014 = \$2,527 Total costs for the year 2014 \$6,464

Example #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.

Deposited by Employee = \$-0-
Example #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? Employee Expenses Old Plan HDHP/HSA Plan HSA Account for 2014 Premium deducted from paycheck \$6,264 \$4,968 Deposited by CGCSC = \$2,289 FSA/HSA deducted from paycheck \$2,400 \$-0- Deposited by Employee = \$-0- Total deducted from paycheck \$8,464 Out-of-pocket costs (Maximum minus FSA/HSA amount) \$3,711 Total in account for 2014 = \$2,289 Drug co-pays \$500 Balance at the end of 2014 = \$-0- Total costs for the year 2014 \$8,964 \$8,679

Example #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.

Rates That You Need to Know
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 EMPLOYEE+1: Payroll deduction N/A \$4,344 \$2,827 EMPLOYEE+1: Deductible \$6,000/\$12,000 EMPLOYEE+1: Out-of-pocket max. FAMILY: Payroll deduction \$6,264 \$4,968 \$2,289 FAMILY: Deductible \$1,000/\$1,500 FAMILY: Out-of-pocket max. \$2,000/\$5,000

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: Contact us with questions: Jessica Clayton Paul Gabriel – Glennda Watson –

2014 Enrollment Form

How Do You Sign Up? 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: under “Next Steps” Go online to enroll in an HSA account if you choose that option: - Follow the link at under “Next Steps” Thank You !

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