Participant Rights and Responsibilities Upon Transfer or Termination
IU HDHP PPO & Health Savings Account
Employees who are enrolled in the IU HDHP PPO & Health Savings Account have two benefits:
- The IU HDHP PPO, a comprehensive medical plan; and
- an IRS-qualified Health Savings Account (HSA).
Both the university and employee contribute to the Health Savings Account while the employee is participating. The Health Savings Account can be used for current health care expenses or saved for future expenses, even after IU employment terminates or transfer to an ineligible position for IU health plan coverage.
All full-time Academic and Staff employees who meet the IRS requirements as stated in IRS Publication 969 are eligible to participate in the IU HDHP PPO & Health Savings Account. Spouses/domestic partners and children who meet the definition of eligible dependents may also be covered by health plans.
Participation by the employee in an IU-sponsored health care plan ends on the date that the employee:
- terminates from the university; or
- ceases to be a member of the eligible class for coverage; or
- fails to make required contributions if prior to the date of termination.
A dependent's coverage will terminate on the date of the earliest of the following occurrences:
- the covered dependent ceases to meet the definition of dependent,
- the employee’s coverage terminates,
- all dependent coverage is discontinued under the plan,
- the employee ceases to be in the eligible class,
- a dependent becomes eligible for employee coverage, or
- the employee fails to make required contributions if prior to the date of termination.
University-sponsored participation in the HSA terminates when the employee's participation in the HDHP PPO plan is discontinued and University contributions end.
When the employee becomes ineligible for the IU HPHP PPO & Health Savings Account, the employee and covered dependents have the same rights and privileges for continuation of coverage as for other IU-sponsored medical plans described in Section II. Employees are no longer eligible to make payroll contributions or receive any IU contributions to the Health Savings Account as of the date of termination of employment or transfer to an ineligible position. Upon termination of IU eligibility, the Health Savings Account (HSA) custodian will notify the participant of options for transferring funds/investments to a personal HSA not associated with the university, or other options provided for by IRS Code. Information on using funds in a personal HSA and associated tax reporting requirements can be found in IRS Publication 969 which is available at www.irs.gov.
IU HDHP PPO
- Notify the university within 30 days of a "change in status," such as divorce, or when a child loses eligibility (e.g., due to marriage, or the child is no longer a full-time student).
- Notify the university if termination is for military service.
- Submit an application to elect COBRA within 60 days of:
- the date coverage ended; or
- the date of the COBRA offer letter, whichever is later.
- Pay initial COBRA premiums to-date within 45 days of electing COBRA.
- Pay monthly COBRA premiums on time.
- During COBRA coverage, notify the university of changes that will affect communications or eligibility, including:
- address changes;
- changes in marital status;
- changes in disability status;
- entitlement under Medicare; or
- coverage under another group health plan.
Health Savings Account
- Work directly with the account custodian to convert any remaining HSA balance to a personal account, or to elect other options allowed by the IRS.
- Understand the IRS regulations for reporting requirements and use of an HSA by reading IRS Publication 969 or consulting a tax advisor.
- If terminating mid-year and not continuing HDHP coverage, either through the COBRA or another HDHP plan, confirm you have not made contributions in excess of the IRS prorated maximum. If your contributions have exceeded the IRS prorated maximum, work with the account custodian and the university to resolve the excess contribution issue. Understand the IRS reporting requirements for excess contributions as detailed in IRS Instructions for Form 8889.
Questions about initiating COBRA coverage may be directed to the University Human Resource Services office at (812) 855-2334. For medical claim questions, call Anthem at (800) 345-2460.
For questions regarding the Health Savings Account, contact The Nyhart Company at (800) 284-8412.