Aetna High Deductible Health Plan with a Health Savings Account
About This Plan
The Aetna High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) offers you more control over how you spend your health care dollars. Its highlights:
- It offers the lowest payroll deductions of all Penn’s medical plans.
- You don’t need to select a primary care provider or get referrals to specialists when you use this plan.
- You can use any doctor you want at any time—although your out-of-pocket costs are based on whether your provider is in-network or out-of-network.
- It includes an optional, tax-saving Health Savings Account.
- This plan carries a high deductible ($1,500 for individuals, $3,000 for family). You must meet it before the plan pays benefits (except for in-network preventive care and preventive generic drugs) NOTE: Once Family Deductible is met, all family members will be considered as having met their Deductible for the remainder of the plan year. There is no individual deductible to satisfy within the family deductible.
- All covered expenses including Deductible and prescription drugs accumulate toward both the preferred and non-preferred deductible and out-of-pocket maximum. Once Family out-of-pocket maximum is met, all family members will be considered as having met their out-of-pocket maximum for the remainder of the plan year. There is no individual out-of-pocket maximum to satisfy within the family out-of-pocket.
If you’re enrolled in the Aetna High Deductible Health Plan, the IRS requires you to complete and submit Form 8889 for your Health Savings Account (HSA). Visit the IRS site for more information.
The Health Savings Account
When you enroll in the HDHP, you have the option of contributing to a Health Savings Account (HSA), which you can manage online. You can use this tax-saving account now to help pay for eligible medical expenses for you and your family, as well as save for future health care expenses.
The HSA provides a triple tax advantage: money goes in tax-free, it grows tax-free, and it’s tax-free when withdrawn to pay for eligible medical expenses.
The Internal Revenue Service (IRS) limits the amount you can contribute to your HSA each year. For 2017, you and the University can contribute up to:
- $3,400 for individual coverage ($4,400 if you’re 55 or older)
- $6,750 for family coverage ($7,750 if you’re 55 or older)
For the 2017-2018 plan year, Penn will also contribute money to your HSA:
- $1,000 for individual coverage
- $2,000 for family coverage
Please note: Penn's contribution is prorated based on which quarter you enroll in the plan.
Example: If your benefit effective date is October 1st, Penn's contribution for individual coverage will be $750.00
Managing Your Account With PayFlex
Access these PayFlex features by logging into Aetna Navigator at www.aetna.com. Contact Payflex at 1-855-652-0112 or Aetna at 1-888-302-8742.
- PayFlex member website – Easily manage your account on the PayFlex member website through Aetna Navigator®, your secure member website.
- PayFlex Mobile™ – The PayFlex app is a great way to stay connected and up to date on your account information.
- The PayFlex Card® – the PayFlex Card helps make it easy to pay for eligible expense items automatically with the funds in your account/s.
- Online payment features – You can pay your health care providers directly from your PayFlex account or pay yourself back for eligible out-of-pocket expenses.
- Connected Claims – You can view your health plan activity and pay any balance due directly to your health care providers from your PayFlex account.
You choose the amount you’d like to contribute to your HSA, up to the annual limit, and make contributions by:
- Regular payroll deduction. Deductions are taken from each paycheck on a pre-tax basis. You can change your payroll deduction amount at any time on Penn’s online benefits enrollment site or by calling the Penn Benefits Center at 1-888-PENN-BEN (1-888-736-6236).
- Lump sum contribution. Choose any amount at any time and contribute on a post-tax basis via a check or an electronic funds transfer. Then claim your total contributions as a deduction when you file your taxes.
Paying for expenses
You can use your Aetna PayFlex HSA debit card to pay for eligible expenses (including your deductible and coinsurance amounts), which means no waiting for reimbursement. Or, you can pay out-of-pocket and use your HSA to pay for future expenses.
Investing Your Savings
If you don’t use all of the money in your HSA during the plan year, it rolls over to the next year. You can also take the money with you if you leave Penn or retire.
Once your balance reaches $1,000, you can invest it in a selection of investment funds through PayFlex.
Important HSA Rules
You cannot be enrolled in any other health coverage plan, including Medicare, union plans, or secondary coverage under a spouse.
- You cannot participate in a Health Care Flexible Spending Account; your spouse cannot participate in one, either.
- Proration rule applies which is an employee can only contribute to the HSA just for the months that he or she is eligible. For example, on July 1, 2017, the employee has a family HDHP. On November 1, he or she no longer has the HDHP. The most that he or she can contribute, including Penn's contribution, for the year is $2,250. ($6,750/12 = $562.50 x 4 months).
- If you reach the pre-tax maximum in any year, you must stay in the Aetna HDHP for the following plan year. If you don’t, you’ll be subject to IRS tax penalties.
The full amount of the expense must be in your HSA account for you to receive reimbursement.
- Post-tax contributions can be made to your account by anyone at any time.
You may change your HSA pre-tax contribution amounts anytime during the year.
- Expenses for domestic partners and/or children are eligible only if you claim them as dependents on your tax return.