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Center Grove Community School Corporation October 30, 2013 How the CGCSC HDHP and HSA Work Together Dr. Paul Gabriel, CFO Slide 2 Introduction Lets talk about our new HDHP/HSA Plan You should first watch these videos: Why You Should Consider an HDHP/HSA Plan What is an HSA? Go to our website for more info: www.centergrove.k12.in.us/HSAwww.centergrove.k12.in.us/HSA 2 Slide 3 Lets Define Some Terms High Deductible Health Plan (HDHP) Our new health plan with a $3,000-single and $6,000-family deductible Health Savings Account (HSA) A bank account you can use to pay health expenses HDHP/HSA The two in combination 3 Slide 4 Should you choose the HDHP/HSA? Q1: What are you paying now? Q2: What will your health care costs be in 2014? Q3: What would you pay with the HDHP/HSA? Every employees situation is different, so you will have to decide for you and your family We are going to run through a few examples 4 Slide 5 Employee ExpensesOld Plan HDHP/ HSA Plan HSA Account for 2014 Premium deducted from paycheck $2,568$1,800 Deposited by CGCSC = $1,428 FSA/HSA deducted from paycheck $1,000$1,572 Deposited by Employee = $1,572 Total deducted from paycheck$3,568$3,372 Out-of-pocket costs (Maximum minus FSA/HSA amount) $-0- Total in account for 2014 = $3,000 Drug co-pays$100$-0- Balance at the end of 2014 = $-0- Total costs for the year 2014$3,668$3,372 Example #1 - Single Single employee, with ongoing health issues On the single plan and reaches $1,000 out-of-pocket max How does the HDHP/HSA compare? 5 Slide 6 Example #1 Summary If 2014 is exactly as predicted, you save $296. If 2014 is better than predicted and your health costs are less, you still save $296 and you will have some money left in your HSA at the end of the year. If 2014 is worse than predicted and your health costs are very high, you still save $296 and your HSA account will be zero at the end of the year 6 Slide 7 Employee ExpensesOld Plan HDHP/ HSA Plan HSA Account for 2014 Premium deducted from paycheck $6,264 (family) $4,344 (Empl.+1) Deposited by CGCSC = $2,827 FSA/HSA deducted from paycheck $-0- Deposited by Employee = $-0- Total deducted from paycheck$6,264$4,344 Out-of-pocket costs (Maximum minus FSA/HSA amount) $100$-0- Total in account for 2014 = $2,827 Drug co-pays$100$-0- Balance at end of 2014 = $2,527 Total costs for the year 2014$6,464$4,344 Example #2 Employee+1 Married employee (no children), with few health issues On the family plan and uses the clinic to avoid most expenses How does the HDHP/HSA compare? 7 Slide 8 Example #2 Summary If 2014 is exactly as predicted, you save $2,120 and have $2,527 in your HSA at the end of the year. If 2014 is better than predicted and your health costs are less, you still save $2,120 and you will have more than $2,527 in your HSA at the end of the year. If 2014 is worse than predicted and your health costs are very high, you will have to spend an additional $1,353, and your HSA account will be zero at the end of the year. 8 Slide 9 Employee ExpensesOld Plan HDHP/HSA Plan HSA Account for 2014 Premium deducted from paycheck$6,264$4,968 Deposited by CGCSC = $2,289 FSA/HSA deducted from paycheck$2,400$-0- Deposited by Employee = $-0- Total deducted from paycheck$8,464$4,968 Out-of-pocket costs (Maximum minus FSA/HSA amount) $-0-$3,711 Total in account for 2014 = $2,289 Drug co-pays$500$-0- Balance at the end of 2014 = $-0- Total costs for the year 2014$8,964$8,679 Example #3 - Family Married employee (with kids) On the family plan with moderate annual health expenses Has an auto accident with major injury in 2014 How does the HDHP/HSA compare? 9 Slide 10 Example #3 Summary This is a worst case example, with very high health care costs in one year. You will still save $285, but will have nothing in your HSA at the end of the year. 10 Slide 11 Traditional PPO Plan High Deductible HDHP Plan CGCSC HSA Contribution SINGLE: Payroll deduction$2,568$1,800$1,428 SINGLE: Deductible (in network & Out network) $500/$750$3,000/$6,000 SINGLE: Out-of-pocket max. (in network & out network) $1,000/$2,600$3,000/$6,000 EMPLOYEE+1: Payroll deductionN/A$4,344$2,827 EMPLOYEE+1: Deductible (in network & Out network) N/A$6,000/$12,000 EMPLOYEE+1: Out-of-pocket max. (in network & out network) N/A$6,000/$12,000 FAMILY: Payroll deduction$6,264$4,968$2,289 FAMILY: Deductible (in network & Out network) $1,000/$1,500$6,000/$12,000 FAMILY: Out-of-pocket max. (in network & out network) $2,000/$5,000$6,000/$12,000 Rates That You Need to Know 11 Slide 12 What Should You Do Now? Attend one of the meetings: Oct. 30, 6:30 pm at ESC Nov. 11, 4:15 at MGES Nov. 12, 4:15 at MSC Nov. 12, 6:30pm at ESC Nov. 14, 4:15 at MSN Attend the open house for personal help: Nov. 20, 11:00 am to 7:00 pm in the High Tech room at ESC Get more info from our website: www.centergrove.k12.in.us/HSAwww.centergrove.k12.in.us/HSA Contact us with questions: Jessica Clayton - 260.427.7123 jessica.clayton@theHSAauthority.comjessica.clayton@theHSAauthority.com Paul Gabriel 881-9326 gabrielp@centergrove.k12.in.usgabrielp@centergrove.k12.in.us Glennda Watson 881-9326 watsong@centergrove.k12.in.uswatsong@centergrove.k12.in.us 12 Slide 13 2014 Enrollment Form 13 Slide 14 Thank You ! Fill out the health insurance election form and return it to Glennda - Everyone must do this, even if they choose to not make any change - Forms will be handed out at every meeting, or - Print one from: www.centergrove.k12.in.us/HSA under Next Stepswww.centergrove.k12.in.us/HSA Go online to enroll in an HSA account if you choose that option: - Follow the link at www.centergrove.k12.in.us/HSA under Next Stepswww.centergrove.k12.in.us/HSA How Do You Sign Up?