Employees encouraged to give Choice Fund with HSA a second look
November 9, 2012
While reviewing medical plan options for 2013, employees are urged to give the Choice Fund with HSA thorough consideration. More than 1,900 employees have been participating in this medical plan in 2012.
The Choice Fund with HSA is Purdue's higher-deductible medical plan that comes with a health savings account (HSA) to help participants pay for today's medical expenses and save for tomorrow's.
"We're not saying the plan is the right one for everybody," says Teresa Wesner, customer service manager in Human Resources, "but employees who weigh their medical options carefully and do the math may find that the Choice Fund is a good plan for them."
Wesner points out Choice Fund with HSA advantages for employees to consider:
* Lower premiums:
-- Current Purdue Incentive participants will save 40-50 percent, depending on their salary tier, by switching to the Choice Fund.
-- Current Purdue Copay participants will save 60-80 percent, depending on their salary tier.
* Purdue will put enough money in the employee's HSA to cover more than half of the in-network deductible.
* Preventive care is paid at 100 percent by the Choice Fund with HSA medical plan. To see a list of eligible preventive care, go to www.purdue.edu/benefits.
* Generic preventive drugs are covered at 100 percent by the plan. For a list of qualifying drugs, go to www.purdue.edu/benefits.
* Choice Fund's family deductible will be in step with Purdue's other medical plans now that the other plans will no longer have an individual deductible embedded within the family deductible.
* HSA contribution limits are much higher than the new $2,500 flexible spending account limit required by the Affordable Care Act. In 2013, the HSA limit is $3,250 for employee-only coverage and $6,450 for employees covering one or more dependents. Employees age 55 and older may contribute $1,000 more.
* Money left in an HSA at the end of the year rolls forward for use in future years. HSAs don't have the same use-it-or-lose-it rule FSAs have.
* An HSA is the only account that lets someone build funds to pay for retiree medical premiums. HSA money is never taxed, as long as it is used for qualified medical expenses.For more information on the 2013 Choice Fund with HSA medical plan, see the 2013 Enrollment Reference Guide, visit www.purdue.edu/benefits or attend a Choice Fund with HSA presentation. The remaining two presentations are on Nov. 13 at 12:30-1:30 p.m. in Burton D. Morgan Center for Entrepreneurship, Room 129, and 3:30-4:30 p.m. in Stewart Center, Room 214CD.