Health Savings Plan
The Health Savings Plan is a high-deductible PPO plan paired with a Health Savings Account (HSA). The PPO plan allows you to receive care from any of the physicians and hospitals within the plan’s network, as well as outside of the network for covered services.
If maintaining a relationship with your current doctor is important to you, the Health Savings Plan allows you to continue seeing your current doctor for most covered services, even if your doctor isn’t part of the plan’s provider network. Keep in mind that if your physician is not part of the plan’s PPO network, you will have to pay more for service.
The Health Savings Account (HSA)* is a tax-free† savings account, administered by HealthEquity‡, that works with the Health Savings Plan and can be used to help you pay your insurance deductible and qualified out-of-pocket medical expenses. You can also save it and let it grow from year to year.
For the 2015 calendar year, the University of California will contribute the following amounts to your HSA: up to $500 per individual coverage or up to $1,000 per family coverage. If you enroll in the Health Savings Plan anytime after January, your HSA will be prorated for the calendar year. As an employee, you can also contribute pre-tax† dollars from your paycheck or make post-tax contributions directly to HealthEquity. You are responsible for monitoring the HSA contributions you make or receive to ensure they stay within the IRS limits.
Other advantages of the HSA include:
- You can keep the HSA, including all the money you contribute, even if you don’t spend it, change jobs, retire, or leave the health plan.
- You will not lose your HSA if you do not spend it, change jobs, retire, or leave the health plan.
- You never pay Federal taxes on withdrawals for qualified medical expenses.†
- Your money earns interest and you do not pay Federal taxes on the interest earned.†
- Once your HSA balance accrues more than $2,000, you can invest any dollar amount above $2,000 into a mutual fund associated with your HSA.
For more information on the HSA, go to healthequity.com/ed/uc.
If you had a health reimbursement account (HRA) through the UC Anthem Lumenos PPO Plan in 2013, and you enrolled in the Health Savings Plan effective January 1, 2014, your unused HRA dollars were transferred to a post-deductible HRA (PDHRA) administered by HealthEquity‡. You can use the money in your PDHRA to pay for out of pocket expenses after the Health Savings Plan deductible has been satisfied. To learn more about the PDHRA and how it works, go to healthequity.com/ed/uc.
To learn more about the Health Savings Plan behavioral health benefits, visit Behavioral Health Benefits.
For information about your prescription drug coverage, visit Non-Medicare Pharmacy Benefits.
The BlueCard Program gives Health Savings Plan members access to care across the United States and only urgent and emergency services around the world. You are not required to use a BlueCard provider; however, it’s in your best interest to use a BlueCard provider to keep your costs down. You can locate a BlueCard provider at any time by calling (800) 810-BLUE or by going to Find a Provider.
* Although most individuals who enroll in an HSA-compatible high-deductible health plan (HDHP) are eligible to open a Health Savings Account (HSA), you should consult with a financial adviser to determine if the Health Savings Plan with HSA is a good financial fit for you. Blue Shield does not offer tax advice for HSAs, as HSAs are offered through financial institutions.
† Under federal law and most state laws. Currently, for residents of California, Alabama and New Jersey, HSA contributions are only excluded from federal income tax. For more information, please consult your tax adviser.
‡ The HSA and PDHRA are offered through HealthEquity an independent company from Blue Shield of California. Blue Shield does not offer tax advice for HRAs or PDHRAs, as HRAs and PDHRAs are offered through financial institutions. For more information about HSAs or PDHRAs, eligibility, and the law’s current provisions, please consult your financial or tax adviser.