Once a year, full-time employees have the opportunity to make changes in medical, dental, and Personal Accident Insurance coverages and to enroll in Tax Saver Benefit (TSB) pre-tax reimbursement accounts.
If an employee does not make enrollment changes during Open Enrollment, participation in medical, dental, and Personal Accident Insurance will remain the same but at the 2013 contribution rates.
Continuation or new enrollment in the tobacco-free reduction and TSB is required annually.
- To continue (or start) receiving the tobacco-free premium reduction, completion of a new affidavit is required.
- To continue (or start) participating in the TSB reimbursement account, completion of a salary reduction for 2013 is required.
- The tobacco-free premium reduction and TSB salary reduction can be processed in the online Open Enrollment section of OneStart.
The Open Enrollment period takes place during November of each year, with enrollment changes becoming effective on January 1. This is an opportunity to:
- Enroll in or drop medical and/or dental coverage.
- Add or drop dependents.
- Add, drop, or change Personal Accident Insurance.
- Allocate contributions for pre-tax reimbursement of health and/or dependent care expenses (TSB).
- Change contributions to the HDHP PPO Health Savings Account. (Can also be done during the plan year.)
- Complete the tobacco-free affidavit to receive a premium reduction.
An Open Enrollment packet with additional enrollment instructions will be sent to employees in the next week through campus mail. Employees are to use Benefits Self Service in OneStart to initiate or change enrollments and to complete the tobacco-free affidavit. The deadline is November 16, 2012.
Eligibility rules for enrolling dependents in IU-sponsored medical and dental plans are available at hr.iu.edu/benefits/needknow.html.
Four years ago, the University introduced a new medical plan called the High Deductible Health Plan (HDHP) PPO and Health Savings Account. This plan includes a unique account with significant preferential treatment of taxes. Over 8,000 IU employees and their families are now taking advantage of this plan.
Triple Tax Savings
The HSA offers substantial tax savings:
- The employee's and IU's contributions to the HSA are not subject to taxes.
- Money withdrawn is not subject to taxes as long as it is used to pay for eligible healthcare expenses.
- Earnings on the HSA are not subject to taxes.
For 2013, IU's contribution to the Health Savings Account (HSA) will increase to be equal to the deductible—$1,250 for employee-only coverage and $2,500 for family.
Flexibility of Health Savings Account
The employee and IU both contribute to the HSA. IU's contribution is made to the employee's account in early January, so the funds can be used immediately if needed.
- HSA contributions can be used to pay the deductible, as well as other healthcare expenses like dental and vision care.
- Employees can change HSA contributions at any time—even after Open Enrollment.
- The account balance carries over to future years, even into retirement.
- When the account balance reaches $1,000, it can be invested in a variety of mutual funds.
- The account balance can be used by the spouse in the event of the employee's death.
About the Plan
The IU HDHP PPO and HSA:
- Uses Anthem/BCBS networks and covers the same services (office visits, hospitalization, emergency room, etc.) as other IU plans.
- Has the lowest employee premium of the four medical plan options.
- Preventive medical services and some prescriptions have no co-pay.
- The out-of-pocket maximum provides protection in case of high medical expenses.
- The HSA comes with a convenient debit card to pay for healthcare services and online banking that allows transfer money to a checking or other account.
The HDHP PPO & HSA has a higher deductible than other plans. This is required by the IRS to obtain the preferential tax treatment of the HSA.
Across All Medical Plan Options
- Women's contraceptive services coverage will be enhanced to include 100% coverage for generic oral birth control pills, IUDs, contraceptive hormone implants and injections, and sterilization procedures.
- Walgreens retail pharmacies will be excluded from the Medco Prescription Benefit Manager (PBM) pharmacy network.
- Medco, which has been purchased by ExpressScripts, will change its name to ExpressScripts. Benefits will remain the same.
- When both spouses are eligible for their own IU-sponsored medical plan they have two options: 1) each enroll as employee-only or employee/children coverage, or 2) enroll jointly as employee/spouse or family at the salary band of the higher compensated spouse.
IU Tax Saver Benefit Plan
The IU TSB Plan is designed to save tax dollars when a participant pays for IRS-eligible expenses. The two healthcare reimbursement accounts are for healthcare and dependent care expenses. Employees may enroll in one or both accounts.
- For January 1, 2013, the maximum annual contribution for the healthcare account will be decreased to $2,500, as required by U. S. Healthcare Reform. (The dependent account maximum will remain the same at $5,000.)
HDHP PPO & Health Savings Account (HSA) Plan
- Deductibles will increase to $1,250 employee-only and $2,500 when family members are covered, as set by IRS.
- IU contributions to the HSA feature will increase to $1,250 annually for employee only and $2,500 for family. (Current amounts are $1,200 and $2,400 respectively.)
- HSA annual contribution limits will increase to $3,250 for employee only and to $6,450 for family, as set by IRS.
PPO $400 Deductible Plan
- No changes
IU PPO $900 Deductible Plan
- No changes
IU Health Quality Partners Plan
- A $400 deducible will be added.
- Co-pays will change to 20%; co-pays and other cost sharing provisions will be the same as PPO $400 Deductible plan.
IU Dental Plan
- No changes
Tobacco use remains the single largest preventable cause of disease, disability, and death in the U.S. yet millions of people smoke. Almost 1 in 5 adults smoke.
- Each cigarette smoked damages lungs, blood vessels, and cells throughout the body.
- 443,000 Americans die of smoking or exposure to secondhand smoke each year.
- For every smoking-related death, another 20 people suffer with a smoking-related disease.
- Smoking costs the US about $96 billion each year in direct medical costs.
Reducing tobacco use is a public health priority with known, effective actions for success and saved lives.
Centers for Disease Control and Prevention