Plan C: Health Savings and Health Reimbursement Accounts
The Health Savings Accounts (HSAs) and Health Reimbursement Accounts (HRAs) help you set aside money to pay for eligible health expenses.
Benefits eligible employees who elect Plan C for health insurance coverage must participate in either an HSA or an HRA.
Enrollment in an HRA will be available as an alternative for those enrolling in Plan C, who are not eligible to contribute to a Health Savings account (HSA) due to:
- Medicare enrollment.
- Tri-Care enrollment.
- Concurrent enrollment in another health plan not considered a High Deductible Health Plan.
- You are eligible to be claimed as a dependent under your parent’s tax return.
- You have dependent children between ages 23-26 (member may choose to enroll in either the HSA or an HRA in this situation).
When enrolling in Plan C, you must also enroll in either an HSA or an HRA.
Benefits - HSA
Both you and your employer contribute money to the Health Savings Account (HSA). For information about those contribution amounts, please see the State Employee Health Plan's information about HSAs.
Your HSA belongs to you and is "portable" which means that even if you leave your employer, you take your account with you and can use it to pay eligible medical expenses. Since the account belongs to you, you are responsible for the account investments and fees, so be sure to review the HSA investment options and fees that apply.
Benefits - HRA
A Health Reimbursement Account is an employer-sponsored plan that has similarities to both a Health Care Flexible Spending Account and a Health Savings Account. However, contributions are funded entirely by your employer - no employee contributions are permitted, the HRA is not portable and any remaining funds at the end of the year will not roll into the next plan year. Participants will have sixty (60) days from the end of a plan year (December 31) to file any claims incurred during that plan year.
If you terminate coverage with the SEHP prior to the end of the plan year, you will have sixty (60) days from your last date on SEHP Health Plan coverage to file any claims incurred while you were covered that plan year.
From January 1, 2017 through December 31, 2017 employees and spouses enrolled in medical plan C have the opportunity to earn credits and HRA/HSA dollars by participating in various well-being activities offered through HealthQuest. Those who complete the REQUIRED Health Assessment (worth 10 credits) and earn a total 40 credits will receive a premium incentive reduction in 2018.
Employee and Employee/Children Coverage will earn a $480 reduction for 2018 and Employee/Spouse and Employee/Family – both the Employee and Spouse can earn a $240 reduction ($480 total) for 2018. They will also earn HRA/HSA dollars per activity (up to $500 per employee and spouse) to be deposited in 2017.
For more information on activities credits, click here for HealthQuest Incentive Guide handout for Plan C.