In 2015, the diocese introduced a High Deductible Health Plan (HDHP) with subsequent Health Savings Account (HSA) in the array of medical plans available. Going forward, these plans will be referred to as Consumer-Directed Health Plan /Health Savings Account (CDHP/HSA). An additional Consumer-Directed Health Plan (Kaiser CDHP-20/HSA) will be offered in 2017. This type of medical plan is structured very differently than the other types of plans. CDHP/HSA coverage consists of two parts:
1. A traditional health plan that promotes preventive care and protects members against catastrophic healthcare expenses (Consumer-Directed Health Plan)
2. A tax-advantaged savings/reimbursement account (HSA) that allows members to take control of their day-to-day health care costs. Click here for an HSA Fact Sheet from the Episcopal Church Medical Trust.
Due, in part, to the higher deductible, this type of plan structure results in a lower monthly premium. To allow employees the opportunity to choose the best medical plan for themselves and their dependent(s) due to plan structure and not merely premium cost, the diocesan policy for premium cost-share between employee and employer was altered slightly in 2015:
Employers must pay a minimum of 80% of the monthly premium of the lowest cost plan (not including the cost of the Anthem BCBS CDHP-15/HSA and Kaiser CDHP-20/HSA) at the “Single” coverage level tier for both medical and dental plans for all eligible full-time employees. This amount must also be pro-rated for all eligible part-time employees. Employers may choose to pay more than this minimum amount, as long as they maintain parity in what is paid for clergy employees and lay employees.
If an employee chooses to enroll in the CDHP/HSA, the employer would be required to pay a minimum of 80% of the monthly premium at the “Single” coverage level tier. The difference between this amount and the amount the employer would pay if the employee enrolled in the lowest cost standard plan (Anthem PPO 75/50) will be contributed by the employer to the employee’s HSA (Health Savings Account). The HSA is a tax-advantaged savings/reimbursement account that members can use to pay their deductible for their medical needs. Therefore, regardless of which plan the employee chooses to enroll in, the employer is required to pay the same amount annually.
If you have any questions regarding this policy, please contact Tamoya Bell, Benefits Coordinator and Accounting Specialist, via email at firstname.lastname@example.org or by phone at 916-442-6918 ext. 229.