Changes for 2015
All Medical Plans
- Hearing aids for children age 17 and younger will be covered every three years up to $1,250 for each hearing aid (maximum of $2,500 every three years).
IUHQP $500 Deductible Plan Replacement
- IU Health is discontinuing the IUHQP plan as of December 31, 2014, and offering instead a high deductible plan as described below—the IU Health HDHP.
- During Open Enrollment participants have the option to select the new IU Health plan or one of the other three IU PPO employee medical plans.
- Participants that do not select a medical plan will automatically be enrolled in the PPO $500 Deductible plan, effective January 1, 2015.
IU Health High Deductible Health Plan (IU Health HDHP)
This is a new plan for 2015. It is a second HDHP plan and meets IRS guidelines to allow IU and the employee to make tax-free contributions to a Health Savings Account (HSA).
- The plan uses the IU Health provider network exclusively. This is the same network as the current IUHQP plan.
- There are no out-of-network benefits with the exception of emergency and urgent care.
- Services for the dependent of an Indiana-resident employee will be covered as in-network benefits when the dependent resides out-of-state.
- The annual deductible and out-of-pocket maximums will be $2,500 for employee-only coverage and $5,000 for all other coverage levels (employee/spouse, employee child(ren), family).
- The University will contribute to the employee’s HSA $1,600 for employee-only coverage and $3,200 for all other coverage levels. The employee is responsible for covering the remaining $900 ($1,800 respectively) to meet the in-network deductible.
- The minimum annual employee contribution to the HSA is $300 ($25/month).
PPO (Anthem) High Deductible Health Plan (PPO HDHP)
- New ID cards will be issued for 2015.
- As stipulated by the IRS, the annual deductible will increase from $1,250 employee-only/$2,500 all other coverage levels to $1,300 and $2,600 respectively.
- The University’s contribution to the employee’s HSA will increase in line with the deductible to $1,300 employee-only/$2,600 for all other coverage levels.
Health Savings Account (HSA)
Eligibility and enrollment
- Both new and current participants in the HSA, must establish a new HSA during Open Enrollment in order to receive and make tax-free contributions to an HSA in 2015.
- Eligibility for the HSA now includes both those enrolled in the new IU Health HDHP plan as well as the PPO HDHP.
Change in HSA management
Due to JP Morgan Chase’s business decision to sell their HSA business, new HSA banking arrangements have been made for 2015. This change in no way affects employees’ ability to spend their Chase HSA balances in 2015 and beyond.
- Employees with an active HSA balance will want to read critical details about moving Chase HSA balance to a new Nyhart account. See further information on the HSA account transfer information web page.
- The University has engaged Nyhart to manage employee HSA accounts using Healthcare Bank.
- Using Nyhart has the advantage of a single debit card and single web account for those participating in both the HSA and TSB. New debit/Visa cards will be issued in December.
What the change to Nyhart means to you
- Online functionality such as account balance, bill pay, transfer funds, and online trades will continue.
- You will still not have to submit claim forms.
- If you don’t move a prior account balance to a new Nyhart account, you will have two separate HSA accounts.
- Account funds will not be accessible via an ATM.
- A checkbook option is not available.
PPO $900 Deductible and PPO $500 Deductible Plans
There will be an out-of-pocket maximum on the member’s cost for in-network prescriptions. Once prescription expenses reach the out-of-pocket maximum—$4,200 for employee-only coverage or $6,000 when family members are covered—the plan will pay 100% of in-network covered prescriptions for the remainder of the plan year.
Tax-Saver Benefit (TSB)
Healthcare Reimbursement Account
- New debit/Visa cards will be issued for 2015. The card can be used for both the TSB and HSA.
- TSB participants are required to complete a Direct Deposit Authorization form before reimbursements can be released from the 2015 TSB account.
- Beginning with accounts established in 2015, there will no longer be a two-month grace period (January and February) for using any account balance funds. Instead, IU will allow a carryover of up to $500 of unused TSB funds into a new account in the following plan year.
- Expenses for the 2015 plan year can only be incurred from January 1, 2015 through December 31, 2015. TSB funds at the end of the 2015 plan year in excess of the $500 carryover amount will be forfeited.
- 2014 TSB accounts can continue to use their 2014 funds during the January and February 2015 grace period.
Managing Two Accounts: HSA and TSB
End-of-year Timing is Critical
If applicable, all 2014 medical expenses eligible to be reimbursed from the 2014 TSB account must be submitted to Nyhart before December 31st, 2014, in order to be reimbursed.
If you are in both the 2014 TSB and the 2015 HSA, the TSB can only be used for dental, vision and post-2015 deductible expenses during the 2015 January and February grace period.
One Card for Both Accounts
If you enroll in both the HSA and the TSB Healthcare account for 2015, you will receive one debit/Visa card to use for both accounts. This is a ‘smart’ card and it knows whether to draw funds from the HSA or TSB.
- When used at a medical provider or a pharmacy, the card will automatically draw from the HSA account funds.
- When used at a dental or vision provider, the card will automatically draw from the TSB funds first, then from the HSA account funds if TSB funds have been spent.
To use the funds in the TSB Healthcare Account for post-deductible medical and prescription expenses, you will need to pay for the expense out-of-pocket then submit a claim for reimbursement to Nyhart.