Consumer Driven Health Plan with Health Savings Account
MSU is pleased to offer the Consumer Driven Health Plan (CDHP) with Health Savings Account (HSA) to eligible employees. This plan may be the most cost-effective option for you if you do not anticipate having high health care needs and are looking for a sound strategy to save for your retirement health care. The CDHP is administered by Blue Cross Blue Shield of Michigan and the HSA is administered by Health Equity.
Eligibility for the CDHP with HSA
This plan is available to the following benefits-eligible employees and their dependents:
- Faculty and academic staff
- Executive management
- POAM employees
- Non-union support staff
- APSA and CTU employees that live outside the state of Michigan.
MSU Retirees and support staff in the following unions are not eligible: APA, MSU Extension, Nurses, Resident Advisors, SSTU, 274, 324, and 1585. APSA and CTU employees that live in Michigan are also not eligbile.
There are also eligibility requirements to participate in the HSA. Due to IRS regulations, you are unable to enroll in the HSA offered with the CDHP if you participate or have a balance in a Health Care FSA.
Those eligible for this plan due to the Affordable Care Act (ACA), please review the following for premium rates and contribution amounts:
About the Consumer Driven Health Plan
While you pay a deductible ($2,000/single and $4,000/family for in-network coverage, or $4,000/single and $8,000/family for out-of-network coverage) first before the plan pays medical and prescription benefits, preventive care and certain generic medications for chronic conditions (asthma, cholesterol, diabetes, and anti-hypertensives) are 100% covered with no deductible or co-pays when using an in-network provider.
The plan limits the maximum amount of expenses you pay for any covered services to $3,000/single and $6,000/family using in-network providers ($6,000/single and $12,000/family using out-of-network providers). After expenses reach this amount, you do not have to pay for any other health care costs, including prescription drugs.
The CDHP is administered by Blue Cross Blue Shield of Michigan.
About the Health Savings Account (HSA)
An HSA is a unique type of savings account that lets you set aside money on a pre-tax basis to pay for eligible medical expenses. You may be able to lower your overall health care costs by using the untaxed dollars in your HSA to pay for deductibles, co-pays, and other eligible health care costs.
If you enroll in the CDHP, you should enroll for the HSA at the same time. MSU contributes up to $750 to the HSA each year (prorated by employment percentage) and you may add funds to the HSA tax-free.
Employer and employee combined annual HSA contributions are limited to the 2023 IRS limits of $3,850/single and $7,750/family and 2024 IRS limits of $4,150/single and $8,300/family. These contributions are triple tax-free! You make contributions pre-tax, your account balance earns interest tax-free, and your distributions are tax-free if they are used for eligible medical expenses.
Do you have an existing HSA from a previous employer? You can add those funds into your new HSA. The money in the HSA is yours to take with you – even if you leave MSU for a different employer or retire. In fact, investing in your HSA now to use in your retirement is a sound strategy to fund your medical expenses in retirement.
Please Note: Due to IRS regulations, you are unable to enroll in the HSA offered with the CDHP if you participate or have a balance in a Health Care FSA.
The HSA is administered by Health Equity.
Tools and Resources
The following tools and resources can assist you with learning more about the CDHP and HSA.
- 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 questions about eligibility, contact the HR Solutions Center at SolutionsCenter@hr.msu.edu or 517-353-4434.
If you enroll in the CDHP, make sure to sign up for both the CDHP AND the HSA (if eligible) during your eligibility period. If you don’t sign up for the HSA when you enroll in the CDHP, you will not have the opportunity to enroll in the HSA until the following open enrollment or if you have a qualifying life event.