Health plan update [Vol. 8, no. 1 (Oct. 15, 2007)]

Health Plan Update
A Publication of the Board of Regents of the University System of Georgia October 15, 2007 Volume 8, No. 1
Open Enrollment is October 8 - November 2
"Educate Your Mind: Make the Smart Choice"
Open enrollment for the health plans to be offered to University System of Georgia employees during 2008 is under way. Each campus is staging a benefits fair. this month During the fair employees will be able to discuss available options with representatives of the vendors.
A new option this year is the High-Deductible Healthcare Plan with a Health Savings Account (HDHP/ HSA). Also for this year, the University System of Georgia Indemnity Dental Plan is open for enrollment and changes, so active employees who may have previously declined dental coverage, or, who would like to extend their dental coverage to eligible dependents may do so. The plan design for the Indemnity Dental Plan will remain unchanged, and there will be no premium increases in 2008.
High-Deductible Healthcare Plan with a Health Savings Account
Effective Jan. 1, 2008, the HDHP/HSA is a new program that offers employees lower premiums as well as greater flexibility and discretion in the management of their health benefits than traditional plans. Deposits made by employees to their Health Savings Accounts are tax deductible, interest earnings are tax deferred and withdrawals are tax free, as long as they're used for qualified medical expenses.
The HDHP has a $2 million lifetime benefit, a $1,500 deductible for employee-only and $3,000 for family contracts, a 90% coinsurance for in-network doctors and 70% for out-of-network doctors after the deductible is met. The monthly employee premium is $23, representing 10% of the total premium.
For USG employees, the HDHP/HSA plan:
Provides traditional medical coverage and a tax-free way to help employees build savings for future medical expenses;
Is portable, remaining with the employee upon termination of employment or retirement;
Allows for funds and interest in the HSA account to be carried over from year to year; and
Saves $1,000 for an individual or $2,900 for a family per year on premium expenses as compared to the PPO plan.
To qualify for the HSA, employees must be covered by a HDHP and no other form of health insurance. Individuals are allowed to have automobile, dental, vision, disability, and long-term care insurance, as well as, disease/illness specific insurance. If the HDHP is in the name of one's spouse, the employee may still be eligible for the HSA.
Only under certain circumstances may an individual have both a Flexible Spending Account (FSA) and an HSA. General FSAs will probably make you ineligible for an HSA. If you have a "limited purpose" or "post-deductible" FSA, then you can still be eligible for an HSA.
We encourage you to attend your benefits fair and, if you have any further questions, please contact your respective Human Resources departments. You can also find information on the University System web site at http://www.usg.edu/employment/benefits/health/. J1!n.