November Open Enrollment – Consumer-Directed Health Plans with a Health Savings Account (HSA) for 2016

To Employees receiving PEBB Benefits:

Consumer-Directed Health Plans (CDHP) with a Health Savings Account (HSA) for 2016

The PEBB Program offers CDHP plans with a health savings account (HSA) through Group Health and Uniform Medical Plan (UMP). If you are currently enrolled in a CDHP or are considering enrolling in a CDHP for 2016, here are a few reminders:

The CDHP has a lower monthly premium balanced with higher annual deductibles and higher out-of-pocket maximums.

To enroll in a CDHP, you must meet the eligibility requirements of the Health Savings Account (HSA).

The maximum contribution to the HSA for 2016 is $3,350 for an individual and $6,750 for an employee with one or more family members enrolled on the account. Employees age 55 or older may contribute up to $1,000 more annually.

Your employer contributes $58.34 per month ($700.08 per year) if you are enrolled as an individual and $116.67 per month ($1,400.04 per year) if you are enrolled with one or more family members. The contributions go into the HSA in equal installments over the year. The entire amount is not deposited in your HSA on January 1, 2016. HSA funds are not available until deposited.

You may also make contributions through payroll deduction (if your employer offers payroll deduction) or you may make deposits directly to your HSA through HealthEquity.

If you earned the SmartHealth wellness incentive for 2016, $125 will be deposited into your HSA with the January employer contribution, at the end of January.

When calculating your contribution for the year, include the employer contributions, the $125 SmartHealth wellness incentive (if you earned it for 2016) and your individual contributions. It is your responsibility not to exceed the maximum annual contributions allowed under the Internal Revenue Service rules. The Employee Authorization for Payroll Deduction to Health Savings Account form can help with your calculations.

The HSA funds are yours to use to help pay for IRS-qualified out-of-pocket expenses. The funds carry over from year-to-year and remain yours even if you are no longer enrolled in the CDHP, leave your job or retire.

More information about the CDHP and the HSA are available on the PEBB website.