Consumer Driven Health Plan with Health Savings Account
MSU is pleased to offer a new type of health plan called a Consumer Driven Health Plan (CDHP) with Health Savings Account (HSA). This plan has the unique feature of the HSA and lower per-paycheck costs.
Eligibility for the CDHP with HSA
This plan is only available to regular faculty, academic staff, executive management and non-union support staff, and their benefits-eligible dependents. Unionized support staff and retirees are not eligible at this time.
There are also eligibility requirements to participate in the HSA. Please review the Interactive CDHP with HSA Guide below for further information.
For those who are now eligible for the CDHP with HSA due to the Affordable Care Act (ACA), also referred to as Health Care Reform, please review the following documentation on premium rates and contribution amounts:
Consumer Driven Health Plan (CDHP)
With this plan, you pay a deductible ($2,000 for Single and $4,000 for Family level coverage in-network, or $4,000 Single/$8,000 Family out-of-network) first before the plan pays medical and prescription benefits. Preventive care and certain generic preventive prescriptions for chronic conditions are covered at 100% with no deductible or co-pays when using an in-network provider. The provider network is the same as the Community Blue PPO plan.
The plan limits the maximum amount of expenses you pay in any year to $3,000 for Single and $6,000 for Family level coverage using in-network providers ($6,000 Single/$12,000 Family using out-of-network). After your expenses reach that amount, you do not have to pay for any other health care expenses, including prescription drugs. With this plan, your premium is lowered by as much as 90%.
Health Savings Account (HSA)
You can put your premium savings, or any percentage you choose, into an HSA (if eligible) on a tax-free basis and you can increase or decrease your percentage throughout the year. Plus, MSU gives up to a $750 HSA contribution each year to those who enroll in the CDHP with HSA. Employer and employee combined annual HSA contributions are limited to 2018 IRS limits are $3,450 for Single and $6,900 for Family (and continues the additional amount of $1,000 for those age 55 or older).
Tools and Resources
The following tools and resources can assist you with learning more about the CDHP and HSA, and help you make the right health care decision for your circumstances.
- CDHP with HSA Video – Illustrates how the CDHP with HSA is different than other health plans.
- CDHP with HSA FAQ – Presents answers to the many questions you may have about the CDHP with HSA.
- HSA Education Webpage - A webpage from the HSA administrator Health Equity that provides educational videos, tools, and information about HSAs.
- Percentage Calculator - A tool to assist in calculating a percentage HSA contribution of pay from a flat dollar amount.
If you have any remaining unanswered questions, the administrators of the plan are available to assist you. The following is their contact information:
- CDHP (administered by Blue Cross Blue Shield of Michigan) questions: Blue Cross Blue Shield of Michigan 877-354-2583
- HSA (administered by Health Equity) questions: Health Equity 877-219-4506
When you have made your decision to enroll in the CDHP with HSA, make sure to sign up for both the CDHP AND the HSA (if eligible) during your eligibility period. If you don’t sign up for the HSA at the same time that you enroll in the CDHP, you may lose the ability to receive MSU’s HSA contribution of up to $750 each year.
Contact MSU Human Resources at 517-353-4434 or 800-353-4434, or via email at SolutionsCenter@hr.msu.edu for assistance on enrolling in CDHP.
10/3/2017 - Updated 2018 HSA IRS limits.
7/28/2016 - Changed the limited amount of in-network expenses paid per year to $3,000 per member and $6,000 per family.