This qualified high-deductible health plan has the lowest monthly premiums of all the medical plans. It includes a Health Savings Account (HSA)—a tax-advantaged account with contributions made by The University.
Here’s how the plan works:
- Until you meet the deductible, you pay for all medical expenses, including prescription drugs, yourself or with money from your HSA. There are no copays.
- Once you meet the deductible, you and the Plan share the cost of covered medical and prescription drug expenses through coinsurance.
- If you reach the medical out-of-pocket maximum, the Plan pays 100% of all eligible expenses for the rest of the Plan Year.
- You have the option to see an out-of-network provider, but you will pay more for your care. See Out-Of-Network Benefits for details.
Health Savings Plan Highlights
| In-Network Benefits | |
|---|---|
| University Contribution to Health Savings Account | $420 individual/$840 family |
| Preventive Care | No cost |
| Deductible | $2,700 individual/$5,400 family |
| Annual Out-of-Pocket Maximums | $6,650 individual/$13,300 family |
| Office Visits, Other Medical Services & Prescription Drugs | 10% after deductible is met |
Understanding the Health Savings Account
How an HSA Can Benefit You
Once you’re enrolled in the Health Savings Plan, you will open a Health Savings Account with Optum Bank. You’ll receive a debit card to pay for your eligible health care expenses, along with detailed information about your account. You must accept the terms of an HSA through Optum Bank.
University Contributions
The University will contribute up to $420 (for individual coverage) or up to $840 (for family coverage) to your HSA. Half of The University’s contributions will be deposited into your HSA in January and half will be deposited in September. Contributions for new hires will be pro-rated based on your benefits start date.
Your Own Contributions
You can have pre-tax contributions deducted from your paycheck and deposited directly into your HSA. However, your contributions cannot exceed the Internal Revenue Service (IRS) annual contribution maximum.
Variety of Health Care Expenses
You can use your HSA to pay eligible medical, dental, vision and prescription expenses. For a full list of qualified expenses, visit IRS.gov.
It’s Your Money
Money in your HSA is always yours—if you don’t use your entire account balance, it will roll over to the next year.
Also, if you leave The University or retire, you can take the account with you.
Account Growth
Your HSA grows through:
- contributions made by The University,
- optional pre-tax (payroll deducted) and post-tax contributions made by you,
- transfers from any existing HSAs that you have, and
- interest and investment earnings once your account reaches a certain
Important HSA Rules
HSA Yearly Contribution Maximum (including University contributions and your optional payroll deducted pre-tax contributions):
- Individual: $3,450 (2018) pre-tax
- Family: $6,900 (2018) pre-tax
- $1,000 additional catch-up contribution allowed if you are 55 or
The IRS requires the following in order for you to enroll in an HSA:
- You must be enrolled in the new Health Savings Plan.
- You can’t have other health coverage that pays for out-of-pocket health care expenses before you meet your plan deductible.
- You can’t be eligible for or enrolled in Medicare, covered by TRICARE, or have received Veterans Administration (VA) health benefits in the previous three months.
- You can’t be claimed as a dependent by someone else.
- You or your spouse can’t have a Healthcare Flexible Spending Account (FSA) or Health Reimbursement Account in the same year that you have an HSA. If you are currently enrolled in The University of Arkansas Healthcare FSA, you must use your funds by December 31. You will have the option of waiving the automatic rollover of any remaining FSA funds, so that you can still have an HSA.
You may want to consult a tax advisor to discuss your unique circumstances.
What’s Right for Me—FSA versus HSA
If you elect the Health Savings Plan with HSA, you will not be eligible to contribute to a Healthcare FSA. Consider which savings account is right for you and your family before making the switch.
| Healthcare Flexible Spending Account | Health Savings Account | |
|---|---|---|
| 2018 Contribution Maximum | $2,600 pre-tax Elect contribution amount for the year at Open Enrollment; no changes allowed during the year except for a qualifying event | Individual: $3,450 pre-tax Family: $6,900 pre-tax (Includes University contributions) $1,000 additional catch-up contribution allowed if you are 55 or older. |
| Plan Year Rollover | Any amount over $50 and up to $500 | Any amount |
| Account Ownership | Account is owned by The University. If you leave, you can continue to use it through COBRA; once COBRA ends account balance is forfeited | You own the account. You can take it with you if you leave The University or retire |
| Account Growth | Your contributions | • Your contributions • Contributions from The University • Transfers • Interest • Investment income |
| Access to Funds | Full yearly contribution at the beginning of the Plan Year | Only the funds already deposited in the account |
| Reimbursement | File eligible claims for the Plan Year by March 31 of the following year | Access HSA funds to pay for services incurred on January 1, 2018 or later |
| Eligible Expenses | Copays or deductibles, dental care, vision care Qualifying prescriptions, certain medical equipment | Copays or deductibles, dental care, vision care Qualifying prescriptions, certain medical equipment |