Medical Plan Choices for 2021
One of the important pieces of feedback we’ve received in recent years is that employees want plenty of time and information to prepare for our annual benefits enrollment period. We get it—benefits touch almost every part of your life. It’s essential you have time to consider all of your choices and determine which options make the most sense for you and your family. Between now and open enrollment, we will send regular emails about various aspects of your benefits, including plan changes and new offerings. Plus, all our normal benefits resources will be available in August and September, so you have everything you need to make informed decisions. This first email is about your medical plan choices for 2021. Over the coming weeks, we’ll be sharing more in-depth information regarding prescription coverage, dental, vision, HSA—as well as a new HRA offering for those who are not eligible for HSA.
New Consumer-Driven Health Plans For 2021, you’ll have a choice of three consumer-driven health plans (CDHPs). A thorough review of our plans was conducted and, as a result, a new line-up of plan designs and premium rates are being offered for 2021. All three plans are new so please review them carefully. (Reminder: As announced in 2019, the Purdue Health Plan PPO will not be an option in 2021.) Because these are brand-new medical plan choices for 2021, you will be required to actively enroll. That means, during open enrollment (Oct. 28 - Nov. 10), you’ll need to log in to Benefitfocus and make your selections. Your current plan elections will not roll forward. Premier CDHP • Highest premiums • Lowest deductible • Lowest out-of-pocket maximum Standard CDHP • Middle-of-the-road premiums, deductible and out-of-pocket maximum Limited CDHP • Lowest premiums • Highest deductible • Highest out-of-pocket maximum All three plans have:
Purdue chose to offer all CDHPs in 2021 because a cost analysis of our employee medical claims showed that many people actually spend less with CDHPs, compared to traditional medical plans. In fact, for the majority of our employees, CDHPs will help:
How A CDHP Works
HSA: How They Help You Purdue’s CDHPs are combined with HSAs. An HSA works like a typical bank account, but to take full advantage of it, you can only use the HSA for eligible expenses like:
While the IRS specifies what expenses can be paid for with an HSA, you are in charge of how and when you spend HSA money. You receive an HSA debit card that works just like a typical debit card. And the money in and out—contributions and withdrawals—is tax-free, lowering your taxable income. A few other things to know about HSAs:
Watch for more emails from benefits in the coming weeks. We’ll provide information on a regular basis to help you to help you prepare for the 2021 benefits enrollment period.
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