MSU Human Resources >> Benefits >> Healthcare >> Consumer Driven Health Plan with Health Savings Account

Members Eligible for the CDHP with HSA

This plan is available to the following benefits-eligible employees and their dependents:

• Faculty and Academic Staff (FAS)
• Executive Management
• Police Officers Association of Michigan (POAM) Employees
• Non-Union Support Staff 
• Administrative Professional Supervisors Association (APSA) and Clerical-Technical (CTU) Employees that live outside the State of Michigan

There are also eligibility requirements to participate in the HSA. Due to the Internal Revenue Service (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.

Members Eligible for the CDHP with HSA due to the Affordable Care Act (ACA):

Please review CDHP with HSA for the ACA Mandated Employee for premium rates and contribution amounts.

Members NOT Eligible for the CDHP with HSA

MSU Retirees and Support Staff (SS) in the following unions are not eligible:

• Administrative Professionals Association (APA)
• MSU Extension
• Nurses
• Resident Advisors
• Spartan Skilled Trades Union (SSTU)
• 274, 324, and 1585
• APSA and CTU employees that live in Michigan are also not eligible. 

About the Consumer Driven Health Plan (CDHP)

While you pay a deductible, per calendar year, 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.

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

Please Note:

The deductible is combined for medical and prescription coverage. The full family deductible must be met under a two-person or family contract before benefits are paid for any person on the contract.

Out-of-Pocket Maximum

The plan limits the maximum amount of expenses you pay, per calendar year, 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, during that calendar year.

About the Health Savings Account (HSA)

The HSA is administered by HealthEquity. 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 2025 IRS limits of $4,300/single and $8,550/family and 2026 IRS limits of $4,400/single and $8,750/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 participate in the HSA offered with the CDHP if you are contributing or have a balance in a Health Care FSA.

If you plan to enroll in a Health Savings Account (HSA) but still have an available balance (on January 1) in a Health Care FSA, you will not be eligible to receive the MSU contribution or contribute to your HSA plan until May 1. The Health Care FSA must close (April 30 is currently the FSA grace period) before your HSA plan can start.  

Read more about the IRS guidelines here.

Tools and Resources

The following tools and resources can assist you with learning more about the CDHP and HSA:

• CDHP with HSA FAQs 
• HealthEquity HSA Education Webpage 
• HSA Percentage Calculator
• HSA Transfer Request Form

Contact Information

• For questions about the CDHP (administered by Blue Cross Blue Shield of Michigan), contact 888-288-1726.
• For questions about the HSA (administered by HealthEquity), contact 877-219-4506.
• For questions about eligibility, contact MSU Human Resources at 517-353-4434, 800-353-4434 or emailSolutionsCenter@hr.msu.edu.

Enrollment Instructions

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 do not sign up for the HSA when you enroll in the CDHP, you will not receive the University contribution or have the opportunity to enroll in the HSA until the following open enrollment (or if you have a qualifying life event (QLE)).