Consumer Driven Health Plan with Health Savings Account (CDHP with HSA) FAQS
For questions about the CDHP (administered by Blue Cross Blue Shield of Michigan), contact 877-354-2583. For questions about the HSA (administered by Health Equity), contact 877-219-4506. For remaining questions contact MSU Human Resources at 517-353-4434 or SolutionsCenter@hr.msu.edu.
Questions About the CDHP
- Many preventive services (e.g. health maintenance exam, mammography screening, well-baby exams, flu shots, etc.) are covered 100% for in-network providers.
- The provider network is the same as the Community Blue PPO plan.
- They all have prescription drug coverage through CVS/Caremark.
- Instead of paying co-pays (e.g. $20 per doctor visit), you will pay the full cost of the health care up to the annual deductible, and then 20% co-insurance until the annual out-of-pocket maximum is reached (for in-network providers), then the CDHP covers 100%.
- Instead of paying co-pays (e.g. $10 for a prescription drug), you will pay the full cost of the prescription drugs up to the annual deductible, and then 20% co-insurance until the annual out-of-pocket maximum is reached, then the CDHP covers 100%.
- Generic prescriptions for asthma, cholesterol, diabetes (injectable insulin), and antihypertensives are 100% covered without deductible or co-pay.
- There is no individual deductible or out-of-pocket maximum with family coverage. The family deductible must be met fully before the health plan will begin coverage, even if the whole deductible is paid by one family member.
- You can enroll in a Health Savings Account to help pay for health care and prescription drugs (please see the HSA information below).
- If you are going to retire or leave MSU, you will want to stop your HSA contributions at least 6 months prior to enrolling in Medicare. For more details, see the CMS website at www.Medicare.gov.
Questions About the HSA
If you enroll in the CDHP, you are also eligible to enroll in the Health Savings Account (HSA) provided you meet the IRS regulations below:
- You must be covered by an HSA qualified high deductible health plan (like the CDHP with HSA that MSU offers).
- You cannot be covered by another non-high deductible medical plan (a major medical plan) or a high-deductible plan that is not compliant with IRS rules regarding HSAs.
- You cannot be enrolled in a Health Care Flexible Spending Account (FSA). Learn more about the Health Care FSA.
- Note: You cannot receive an employer contribution or contribute to your HSA plan as long as you have remaining funds in a Health Care Flexible Spending Account until the end of the FSA grace period, currently April 30.
- You cannot be enrolled in Medicare (Part A, B or D); and you cannot be claimed as a dependent on another individual’s tax return.
The annual university contribution of up to $750 is prorated by employment percent:
- Full Time (90-100%): $750.00
- 3/4 Time (65.0-89.9%): $562.50
- 1/2 Time (50-64.9%): $375.00
If you enrolled during Open Enrollment in October, you will receive the university contribution in your January paycheck (subject to payroll processing deadlines, health care FSA remaining balance, and employment status).
New hires and newly enrolled employees will receive the university contribution within 90 days (subject to payroll processing deadlines, health care FSA remaining balance, and employment status).
You can choose a percentage of your pay to be contributed each pay-period. You can change the percentage contribution of your payroll deduction any time (subject to payroll processing deadlines).
A contribution outside of payroll deduction can also be made directly to your HSA.
ACA-Mandated should refer to CDHP with HSA for the ACA Mandated Employee.
Yes. You can take money out any time, tax-free and without penalty, as long as it’s used for qualified medical expenses. If funds are withdrawn for other purposes, you’ll pay income taxes on the withdrawal plus a 20% penalty.
- You will receive a Visa debit card that is connected to your HSA. You can use the debit card to pay for medical expenses (e.g. doctor appointments, prescription drugs, vision, dental, etc.) at the point of service.
- You have access to your HSA online to pay medical invoices.
- You can request a reimbursement of qualified medical expenses that were paid with non-HSA monies.